Recent ethanol prices significantly lower than expected
Mannheim, 15 November 2023, 11:15 CEST – CropEnergies AG, Mannheim, adjusts the outlook for the financial year 2023/24 (1 March 2023 – 29 February 2024) and now expects revenues of EUR 1.24 to EUR 1.30 (previously expected: EUR 1.27 to EUR 1.37, previous year: EUR 1.49) billion. The operating profit is expected to reach EUR 70 to EUR 100 (previously expected: EUR 95 to EUR 145, previous year: EUR 251) million. This corresponds to an EBITDA of EUR 115 to EUR 145 (previously expected: EUR 140 to EUR 190, previous year: EUR 294) million.
The main reason for the adjustment of the outlook is a significant deterioration in the revenue situation. Ethanol prices in particular have recently been much weaker than expected. While daily prices of around EUR 900 per cubic metre of ethanol were still being recorded at the beginning of November, they have since fallen unexpectedly sharply to EUR 635 per cubic metre of ethanol.
CropEnergies assumes that the increased volatility on the sales, commodity and energy markets, particularly in the previous year due to the war in Ukraine, could increase again as a result of the recent escalation in the Middle East and uncertainties in the implementation of regulatory framework conditions. The introduction of E10 in other European countries continues to point to stable sales of fuel ethanol, although this will continue to be offset by high import volumes.