German Cropenergies cuts 2013/14 op profit forecast after Ensus acquisition

Jul 30, 2013 - German bioethanol producer Cropеnergies (ETR:CE2) today reduced its operating profit forecast for fiscal 2013/14, taking into consideration some effects from the acquisition of UK sector player Ensus Limited.

Due to the commissioning of an Ensus production plant in the northeast of England, Cropenergies expects its operating profit to stand at between EUR 40 million (USD 53m) and EUR 50 million in fiscal 2013/14 through February.

The previous forecast of the German company was for an operating profit of between EUR 50 million and EUR 60 million.

At the same time, revenue is seen growing by between 10% and 20% year-on-year. The previous outlook was for a revenue at the prior-year's level of some EUR 689 million.

Ensus's production plant in the northeast of England, which has been at a standstill since April 2013, is expected to start operations again in the autumn of 2013, Cropenergies said.

Thanks to the acquisition of the UK-based company, the German bioethanol producer will raise its annual production capacity by 50% to more than 1.2 million cubic metres.

Cropenergies expects its revenues to grow to EUR 1 billion in the medium term.

(EUR 1.0 = USD 1.326)

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