10 November 2008
After the difficult 2007/08 financial year, BKN biostrom AG anticipates a boom in the Biogas sector in the current year
Vechta - Even though the final figures for the last financial year 2007/08 (30/09) have not been released, the Board anticipates targets will not be met. Losses in the Biodiesel business could not be fully offset by Biogas business activities. In particular, dealys in gaining approvals for new biogas projects led to postponements into the current financial year. Additional impacts arose from the revised application of the POC accounting methodology used to book the progress of order processing in the project business. The company will not release exact figures for several weeks.
The delayed permits originally expected in 2007/08 will, in any case, have a positive impact on the current financial year. Falling raw material prices and the much better conditions created by the updated EEG will trigger a downright boom in demand in the Biogas sector. At present the project pipeline of BKN contains more than 30 MW, equal to sales volume of ca. € 150 m. The worries of many investors that, in spite of the improved political framework, problems in project financing will again weaken the order backlog, are not shared by CFO Gunnar Dresen: "Not even in the current financial market crisis have we had problems securing outside financing. We have the corresponding commitments from our strategic banking partners." Since the experience of the last several months has shown that the time necessary for the permit process differs from one municipality to the next, the divergent financial year makes it very difficult for the management of BKN to give a detailed guidance. "Given the experience of the last year, we issue a conservative forecast: EBIT of at least € 5 million", stated Gunnar Dresen.
About BKN biostrom AG
BKN biostrom AG specialises in the project development of biogas plants. BKN biostrom acts as a successful general developer in the market for biogas plants through its operating subsidiaries. In doing so, it covers the entire value chain: the company has extensive know-how ranging from securing sites, development, permit acquisition and the construction and launch of biogas plants to the efficient management of plants. The company’s many years of experience in supervising biological processes at biogas plants give BKN biostrom its specific market expertise.
Vechta, 10 November 2008
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Attention editorial offices: For further questions please contact Mr.
Gunnar Dresen, CFO BKN biostrom AG.
Große Elbstraße 45
Tel: +49 (0)40 357 188 60
Fax: +49 (0)40 357 188 62