EQS-News: Dynamic business performance of EnviTec Biogas continues in H1 2023

Dynamic business performance of EnviTec Biogas continues in H1 2023

• Total output (including plants under construction) up 10.3% to EUR 188.7 million
• Sales revenues slightly below prior year period at EUR 142.0 million (H1 2022: EUR 144.2 million)
• EBITDA rise to EUR 41.2 million (H1 2022: EUR 26.3 million); EBT up to EUR 39.2 million (H1 2022: EUR 20.1 million)
• Order backlog in Plant Construction segment at EUR 307.5 million as of 30 June 2023 (31 December 2022: EUR 217.7 million)

Lohne, 29 September 2023 – EnviTec Biogas AG (ISIN: DE000A0MVLS8) recorded a dynamic business performance in the first six months of 2023. Consolidated total output picked up by 10.3% to EUR 188.7 million. At EUR 142.0 million, sales revenues of the EnviTec Biogas Group were slightly below the prior year period’s EUR 144.2 million. This is primarily attributable to the fact that fewer projects were finally invoiced in the Plant Construction segment as of the reporting date, 30 June 2023. This contrasted with a noticeable increase in inventory of unfinished goods, mostly plants under construction, in the amount of EUR 31.2 million.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at EUR 41.2 million in the reporting period (H1 2022: EUR 26.3 million). Earnings before taxes (EBT) increased to EUR 39.2 million (H1 2022: EUR 20.1 million). Consolidated net income for the period rose to EUR 33.3 million (H1 2022: EUR 17.6 million). Consolidated earnings per share thus stood at EUR 2.24 (H1 2022: EUR 1.19). The sharp increase in profitability is essentially due to electricity trading contracts signed in the prior year (Energy segment). This effect leads to extraordinary income of approx. EUR 15 million in the first six months of 2023 and of approx. EUR 30 million in the full year.

“The positive effect of the electricity trading agreements on income will probably not be repeated in this form in the coming years,” said Jörg Fischer, Chief Financial Officer of EnviTec Biogas AG. “Other aspects such as the high prices of commodities and building materials may also weigh on our profitability in the future. At the same time, the record results of the recent business periods have laid a strong foundation for the continued success of our company. There are many opportunities for us in Germany, but especially in the international biogas markets, driven by global efforts to combat climate change and secure sustainable energy supplies. We are currently seeing strong demand for our biogas plant and gas upgrading technology, particularly in the US.”

Own Plant Operation, the company’s most important segment, continued the excellent performance of the prior year period also in the first half of 2023. Segment revenues improved by 5.4% on the prior year period’s EUR 113.4 million. Total output in the Own Plant Operation segment rose by 6.0% to EUR 115.1 million. While sales revenues in the Plant Construction segment declined from EUR 17.4 million to EUR 8.3 million in the reporting period, this is due to the fact that the number of finally invoiced projects was lower than in the same period of the previous year. Total output rose by 14.1% to EUR 47.1 million, especially due to a noticeable increase in inventories. In this segment, several US projects are expected to be finally invoiced in the second half of the year. The Service segment also showed a very positive performance in the first six months of 2023. The segment’s revenues rose by 5.9% to EUR 20.3 million. Total output picked up by 24.5% to EUR 26.6 million, which is also mainly attributable to an increase in inventories resulting from new repowering and conversion projects.

The Plant Construction segment’s order backlog increased to EUR 307.5 million by the end of June 2023 (31 December 2022: EUR 217.7 million). At EUR 235.5 million, most of this amount is accounted for by the international biogas markets. The proportion of projects in Germany also increased significantly compared to previous periods, with a large proportion of this being attributable to the Own Plant Operation segment as part of our investment program.

With total assets at EUR 419.3 million, the equity ratio stood at a still very good 47.2% as of the interim balance sheet date (31 December 2022: 49.1%). As of the reporting date, EnviTec Biogas had cash and cash equivalents in the amount of EUR 116.9 million.

An important goal in EnviTec’s strategy is to tap additional growth potential for the Group outside the traditional applications of biogas, mainly in the field of advanced biofuels. After a two-year conversion phase and an investment of over EUR 50 million, BioEnergie Park Güstrow (Mecklenburg-Western Pomerania) was officially opened at the end of August 2023.

“The realisation of an innovative plant concept in Güstrow once again shows that we are a true pioneer in the biogas industry,” said Olaf von Lehmden, CEO of EnviTec Biogas AG. “In addition, Germany’s largest integrated bio-LNG plant, including CO₂ liquefaction, is setting new standards for a greener transport sector. And we will continue to invest, especially in our own plants in Forst (Brandenburg) and Neuburg (Mecklenburg-Western Pomerania). Both projects include capacity increases and the addition of CO₂ liquefaction processes. This will further strengthen our market position as an integrated, innovative biogas specialist with high technological expertise.”

The EnviTec Executive Board continues to project total output (or revenues) in the EUR 400–450 million range for the full year 2023. Taking into account the one-time effect in the Energy segment, earnings before taxes (EBT) are expected to amount to between EUR 85 million and EUR 105 million.

The full interim report for the first six months of 2023 is available at https://www.envitec-biogas.com/company/investor-relations/ir-reports.

About EnviTec Biogas AG

EnviTec Biogas AG covers the entire value chain for the production of biogas, including the planning and turnkey construction of biogas plants and biogas upgrading plants as well as their commissioning. The company takes charge of biological and technical services on demand, and also offers operational management services. EnviTec operates 89 of its own plants, making it one of the largest biogas producers in Germany. EnviTec’s business activities also include the production and marketing of climate-neutral fuels (bio-LNG) for the transport sector as well as food-grade liquid carbon dioxide (LCO₂). The company is represented in 16 countries worldwide by its own companies, sales offices, strategic partners and joint ventures. In 2022, the EnviTec Group generated revenue of EUR 382.8 million and EBT of EUR 66.6 million. The Group currently employs over 600 people. EnviTec Biogas AG has been listed on the Frankfurt Stock Exchange since July 2007.

Contact:

Katrin Hackfort

EnviTec Biogas AG

Phone: +49 25 74 88 88 - 810

Email: [email protected]