Verbio warns Asian biofuel imports putting pressure on earnings
(Reuters) - German biofuels producer Verbio warned that large-scale imports of biofuels from Asia, some of which have allegedly been falsely declared in the past, were weighing on its earnings.
Verbio reiterated its guidance for 2023/24 earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of 120 million to 150 million euros ($129.23 million to $161.54 million) and net debt in the range of 145 million to 175 million euros.
"These forecasts reflect the ongoing pressure on the prices for ethanol and GHG quotas, in particular as a result of the massive volumes of questionable imports of advanced biofuels from Asia in 2023," the company said in a statement.
In September, the company posted full-year EBITDA of 240.3 million euros.
Greenhouse gas quotas are legally binding limits on the amount of greenhouse gases that a country, organization or industry can emit over a certain period.
In December, a complaint from the producer group European Biodiesel Board (EBB), of which Verbio is a member, prompted the European Union to begin an anti-dumping investigation into biodiesel imports from China, which the bloc's industry says has slashed domestic production.
Earlier last year, the EU began investigating whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain.
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