The first quarter result of the German biofuel producer CropEnergies has shown a dip in first-quarter core profit due to the lower ethanol prices and lower production owing to maintenance shutdowns, reports Reuters.
The company reported a fall in EBITDA (earnings before interests, taxes, depreciation and amortization) by 76% to 25 million euros ($27.2 million) in the March to May quarter as against the same period last year. The shares of the company fell 6% in the first few hours of the trading.
The price of ethanol is down by 39% in the European Union year on year as per the Refinitiv data.
The company makes ethanol and animal feed from renewable materials like biomass and has reported a 21% decline in ethanol production to 221,000 cubic meters during the quarter from 281,000 cubic meters a year earlier.
Hartmut Moers, an analyst at Mtelan Research said, “It was expected that the Q1 results would be below the last year’s results due to normalizations of prices and scheduled maintenance.”
