Ethanol prices continue to drop recently
Mannheim, 15 December 2023, 10:20 CET – According to preliminary figures, CropEnergies AG, Mannheim, has achieved revenues of EUR 312 (previous year: EUR 328) million in the 3rd quarter of 2023/24 (1 September – 30 November 2023) as well as an operating profit of EUR 27 (previous year: EUR 56) million.
This corresponds to an EBITDA of EUR 38 (previous year: EUR 66) million. In addition, CropEnergies once more adjusts the outlook for the financial year 2023/24 (1 March 2023 – 29 February 2024) and now expects revenues of EUR 1.23 to EUR 1.25 (previously expected: EUR 1.24 to EUR 1.30, previous year: EUR 1.49) billion. The operating profit is expected to reach EUR 40 to EUR 60 (previously expected: EUR 70 to EUR 100, previous year: EUR 251) million. This corresponds to an EBITDA of EUR 85 to EUR 105 (previously expected: EUR 115 to EUR 145, previous year: EUR 294) million.
The main reason for the adjustment of the outlook is the continued deterioration of the earnings situation. Contrary to expectations, ethanol prices have continued to drop since the last adjustment of the outlook on 15 November 2023, and have recently fallen to below EUR 600 per cubic metre of ethanol. At the beginning on November, daily prices of around EUR 900 per cubic metre of ethanol were still being recorded. Should prices of renewable ethanol continue to remain at this low level, CropEnergies will examine, if the current capacity utilization can be kept up in the short term.
CropEnergies continues to assume 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.