Biopetrol biodiesel and glycerine production sales / profits soar

Zug based Biopetrol Industries AG which was founded in 2005 and the Klink family (see below) have a major interest of 65%. On April 27, 2006 3 Mn. shares were and closed @ EUR 8.00 per share see IHT report. They recently announced their interim 6 months results -

1. Consolidated sales revenues by about 48% to €92.4 million (previous year: €62.3 million).

2. Gross profit up more than 50% to €12.5 million (previous year: €8.3 million).

3. Gross profit margin down from 13.3% to 12.7%

4. EBITDA earnings rose by almost 70% to €4.4 million (previous year: €2.6 million).

If you want an excellent and brief analysis of the prospects for the growth of bio-diesel fuel use in Europe read but read this if you do.

Sales revenues increased due to increased capacity.

Sales revenues rose as production started at the Rostock biodiesel plant (production rose 59% period to period) . In conjunction with the Schwarzheide plant, Biopetrol now has an annual capacity of 350,000 tonnes - all meeting the strict DIN EN 14214 standards with a resistance to temperatures of as low as -20° Celsius. The Rotterdam plant which is on target to come on line in early 2008 should increase this to 750,000 tonnes per year making them one of Europe’s largest biodiesel producers. The by product of 30,000 tonnes of pharmaceutical grade glycerine per year (all with a Kosher certificate) will also double as this production is ramped up.

A further enlargement of capacity in Rotterdam is under consideration in addition to securing growth by means of purchases and expansion of the product range based on the by-product glycerine.Glycerine sales are handled by subsidiary Glyctec GMBH curreently. (Where does all this glycerine from bio-fuels go to ?)

Sales accelerated in Q2 grew by 62% to €50.1 million (previous year: €30.9 million), of which 35% was exports.

Political situation in Germany remains difficult

The German Government introduced an energy tax on biodiesel in Germany in August 2006.

This year, the tax rate in the free market is to be increased incrementally from the €0.09 per litre to €0.15 per litre. Subsidised biodiesel imports from the USA are causing extra pressure, particularly in the German fuel market although there have been assurances that the US government will in future restrict these subsidies (so called "splash'n'dash") to the domestic US market.

According to the German Federal government’s roadmap for biofuels, biofuel market share will be 17% of roadfuels by 2020.

CFO sacked

In a surprise announcement yesterday the company dismissed Mr. Rudolf Albert from his function as Vice-President and CFO and to terminate his employment contract... "
"The dismissal of Mr. Rudolf Albert is not related at all to the financial and operational situation of the Group. Special payments relating to the termination of Mr. Albert's employment contract will not be made." said a tight lipped CEO , Klaus Henschel, CEO:

WEDECO Gesellschaft für Entkeimungsanlagen mbH

Germany Werner Klink and Horst Wedekamp founded WEDECO Gesellschaft für Entkeimungsanlagen mbH to produce and make the very first UV water disinfection systems. The UV lamps were circular embedded around the quartz tube through which the water was piped. The company was sold to the US company ITT Industries of White Plains.NY (US7Bn.sales) in 2004.

Here is the share price history , they closed today at Euros 5.02 on Frankfurt Bourse.....


It is worth taking a look at Lord Patel's post on Biofuels plc whose factory in the North east Prime Minister Tony Blair opened ... their shares trade at 1.5 p today.

Bio - fuels, Southern Hemisphere market growing fast

The world's largest biodiesel plant which will eventually produce 1.8 million metric tonnes of biodiesel a year, is being put up in a US$130Mn project by Australian renewable energy firm Natural Fuel Australia Ltd on Jurong Island in Singapore. Based on refined palm oil as feedstock, it will serve markets in Japan, Korea, Taiwan and the west coast of the US. Part of what is projected to be worth globally, US$1 trillion by 2020.

There are also prospects of a world oversupply of glycerine as it will also produce 60,000 tonnes of pharmaceutical-grade Glycerin, which has uses in cosmetics and drugs production.

The plant represents one of Australia's largest single manufacturing investments in Singapore to date.

Richard Selwood, Managing Director of Natural Fuel, says of the bio - diesel market which is growing at 30% year on year

"At the moment, because it's grown from a very small base, the growth is quite spectacular, probably 30-plus percent per annum. I don't believe that a long term is sustainable. But the market, let's say, probably will be about 5 percent of the total fuel market."

The world's largest palm oil producers produce about 33 million tones of palm oil a year, or about 80 percent of the world's market. Natural Fuel says Singapore's easy and direct access to this crop as well as others from Australia (canola and soya) is a key part of its strategy to secure production feedstock.

Selwood says:

"We have long-term contracts with suppliers like ConAgra. They guarantee us the feedstock, which would be sourced out of RSPO (International Roundtable on Sustainable Palm Oil) members in Malaysia and Indonesia. And we're also experimenting with growing soy crops in the top end of Australia, northern Australia, which can also be used in the Singapore plant. And because Singapore is so well located, we can source from anywhere in the globe."

Natural Fuel says the plant becomes profitable with mineral oils priced above US$40 and currently plans to build 3 other biodiesel plants in Houston in the United States, and in Darwin and Sydney in Australia.

World's largest independent terminal operator Royal Vopak will provide storage, pipeline, equipment and logistic services for its Singapore plant.

The Bio-fuels Australia Conference will be held on 20 - 21 November 2006, Hilton Hotel, Sydney, Details are available here

Biofuels Finance and Investment World will be held on 28 - 30 November 2006, Royal Garden Hotel, London, United Kingdom . Details are available here