EnviTec Biogas: Business picked up clearly in second quarter of 2010

- Second quarter sales up 55.8 percent on the first quarter - Order book at record level of EUR 270.6 million - Continued sales growth and positive result expected for full year 2010

Lohne, 26 August 2010 – EnviTec Biogas AG [ISIN: DE000A0MVLS8] benefited from clearly accelerated business momentum in the second quarter. Europe’s leading manufacturer of biogas plants reports sales of EUR 33.2 million in the April to June period, up 55.8 percent on the first quarter of 2010. In the Plant Construction segment alone, sales rose by 71.4 percent to EUR 25 million compared to the first three months. “Following on from the start of the year which was marked by the impact of the harsh winter, we are very satisfied with the sales performance seen in the second quarter,” said Jörg Fischer, the company’s CFO. “In late June we almost worked at 100 percent capacity.”

Group revenues for the full half year rose by 27.5 percent from EUR 42.7 million to EUR 54.4 million compared to the prior-year period. The sales growth is also reflected in earnings, even though the company has not achieved a positive result yet. Compared to the first three months of 2010, the company’s earnings before interest and taxes (EBIT) improved from EUR -0.9 million to EUR -0.6 million in the second quarter. At EUR -1.5 million, EBIT for the half year shows a 69.5 percent improvement on the prior year period (H1 2009: EUR -4.8 million).

Order book at record level

The dynamic business trend is set to continue in the second quarter given that, at EUR 270.6 million, the order backlog is higher than at any time in the company’s history, providing an excellent basis for further growth. Orders come from across all customer groups, from farmers to professional energy producers. Demand for 500 kw electrification plants is particularly strong. Accordingly, the company is not dependent on individual major projects. Apart from Germany, demand has been particularly strong in Italy. The first half of the year saw EnviTec Biogas enter the French market where the first four orders worth a total of EUR 12.5 million have been secured. Implementation of these projects has already started.

Outlook: Clear improvement of sales and earnings in the second half of the year

In view of the favourable business trend in evidence across all segments, the Executive Board expects the second half of the year to bring a clear improvement in sales and earnings both compared to the prior year period and to the first half of the current year. Jörg Fischer said: “Our declared goal is to report a positive result for the full year 2010.” In addition, new orders from domestic and international customers are expected to keep the company’s order books well-filled. In July, EnviTec Biogas was awarded a contract from Wales. The construction of the biogas plant in Rogerstone, a district of Newport, is a double debut for EnviTec. The reference project in the UK not only marks the company’s entry into a new market but is also the first plant to produce biogas solely from food waste. Moreover, the company anticipates fresh stimulation in the Eastern European markets. Says Roel Slotman, Board member in charge of international sales at EnviTec Biogas AG: “The financial and economic crisis made financing a particular challenge in Eastern Europe. This situation is currently changing for the better and we see customers coming back. “

The interim report on the first six months of 2010 is available on the Internet at www.envitec-biogas.de.

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 as well as their commissioning. The company provides the biological and technical service, and also offers full plant and operating management. In Güstrow, in the German state of Mecklenburg-Western Pomerania, EnviTec Biogas built the world's largest plant for the production of biogas to natural gas standards with a thermal output of 55 megawatts. In addition, the company also operates its own biogas plants. Today, the company is represented in more than 15 countries throughout Europe, as well as in India. EnviTec Biogas generated revenues of EUR 120 million and EBIT of EUR -0.5 million in 2009. The EnviTec Group currently has 411 employees. EnviTec has been listed on the Prime Standard segment of the Frankfurt Stock Exchange since July 2007.

Investor Relations:

Olaf Brandes
EnviTec Biogas AG
Tel: +49 44 42 80 65 -118
E-Mail: ir@envitec-biogas.de

Press contact:

Thomas Bolte
EnviTec Biogas AG
Tel: +49 25 74 88 88 -198
E-Mail: t.bolte@envitec-biogas.de

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Financial reports - 25.08.2011 08:54

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