GLOBAL BIOENERGIES: 2018 FINANCIAL
FIGURES
Net
loss for the Group of €13.6m in 2018, of which €2.9m in
amortisation of the demo plant
Cash
position of €10.3m at 31 December 2018
Evry (France), 1 March 2019 - Global
Bioenergies (Euronext Growth: ALGBE) released its 2018 financial
statements, audited, certified and approved by the Board of
Directors Meeting held yesterday[1]. These yearly figures report a
net loss of €13.6m for the 2018 financial year, a slight
improvement over 2017, and a cash position of €10.3m as at 31
December 2018.
Samuel Dubruque, Chief Financial Officer of
Global Bioenergies, explained: "For the first time in the Group's
history, the net loss is slightly improved over the previous year.
This trend will continue in 2019, and points to profitability
within four years. The hardest part is behind us, particularly in
terms of capital expenditures. Now, the Group's number one
objective is the emerging of its first commercial plant, IBN-One, a
joint-venture with Cristal Union."
Marc Delcourt, Chief Executive Officer of Global
Bioenergies, added, "Significant progresses have been made in the
performances of the Isobutene process and its scaling-up. Along
with this technology push, there is a very clear market pull: for
regulatory reasons, the cosmetics industry is facing the
progressive phase-out of volatile silicones, for which isobutene
derivatives are substitutes. Several letters of intent have been
received from major players in the cosmetics industry, representing
up to 10,000 tons of product annually, with a guideline price of €4
to €10/kg.
Beyond the cosmetics market, the Isobutene
process has the potential to shift the lines of the energy and
environmental transition, which is now clearly one of the primary
concerns of today's societies. Western consumption patterns cannot
be generalised to a human population of 10 billion individuals, and
we all know that radical changes will happen. Letters of intent
totalling up to 55,000 tons per year of renewable gasoline and jet
fuel have already been received from industrial leaders in these
energy markets, the equivalent of more than 1% of French fuels, and
in excess of the maximum capacity of the future first plant."
- Group Profit and Loss Statement as of 31 December
2018
|
|
|
|
€ thousands |
from 01/01/18 |
from 01/01/17 |
from
01/01/16 |
|
to 31/12/18 |
to 31/12/17 |
to
31/12/16 |
|
|
|
|
|
|
|
|
Operating
income |
2,412 |
2,369 |
3,292 |
Operating
expenses |
18,088 |
18,002 |
15,216 |
Average
headcount (Group) |
69.3 |
66.4 |
61.3 |
|
|
|
|
Operating
profit (loss) |
-15,676 |
-15,634 |
-11,924 |
|
|
|
|
EBITDA |
-12,059 |
-12,664 |
-10,723 |
|
|
|
|
Financial
profit (loss) |
-570 |
-708 |
-530 |
Exceptional
profit (loss) |
64 |
89 |
-50 |
|
|
|
|
Income
tax |
-2,546 |
-1,999 |
-1,896 |
|
|
|
|
Net profit (loss) |
-13,637 |
-14,253 |
-10,607 |
The net loss was €13.6m, to be compared to
€14.3m last year. The EBITDA also improved, from -€12.7m in 2017 to
-€12.1m in 2018.
Operating expenses were severely impacted by
amortisation expenses and particularly those corresponding to the
Leuna demo plant, initiated on 1 April 2017, for a period of 4
years; 2018 was the first full year and the Group's amortisation
expenses (€3.6m) alone represented 20% of total operating expenses,
without however having any impact on cash flow.
Operating revenues are made up of European
subsidies related to diversification projects for resources usable
in the Isobutene process, and revenues from partnerships with the
car manufacturer Audi after the achievement of a number of new
technical milestones.
- The Group's Balance Sheet on 31 December 2018
Assets (€ thousands) |
31/12/18 |
31/12/17 |
31/12/16 |
|
Liabilities (€ thousands) |
31/12/18 |
31/12/17 |
31/12/16 |
|
|
|
|
|
|
|
|
|
Intangible assets |
1,228 |
1,267 |
69 |
|
Capital |
254 |
224 |
168 |
Assets |
7,778 |
11,075 |
12,182 |
|
Share
premium |
74,207 |
67,867 |
49,409 |
Financial assets |
1,061 |
365 |
146 |
|
Retained
earnings |
-54,926 |
-40,673 |
-30,066 |
|
|
|
|
|
Profit
(loss) |
-13,637 |
-14,253 |
-10,607 |
|
|
|
|
|
Equipment
subsidies |
383 |
553 |
391 |
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS |
10,067 |
12,707 |
12,397 |
|
EQUITY |
6,280 |
13,718 |
9,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISIONS |
66 |
57 |
42 |
|
|
|
|
|
|
|
|
|
Inventories - Receivables - Prepayments |
4,614 |
4,504 |
5,074 |
|
Conditional
advances and loans |
9,356 |
10,213 |
11,483 |
Cash and equivalents |
10,756 |
13,639 |
8,066 |
|
Trade
payables and related accounts |
3,356 |
4,622 |
4,120 |
|
|
|
|
|
Other
payables & deferred income |
6,379 |
2,240 |
597 |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
15,370 |
18,143 |
13,140 |
|
PAYABLES
& DEFERRED INCOME |
19,090 |
17,075 |
16,200 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
25,436 |
30,850 |
25,537 |
|
TOTAL LIABILITIES |
25,436 |
30,850 |
25,537 |
The balance sheet reflects a certain number of
changes from 2017 to 2018, particularly due to the granting of
European subsidies given during the year:
- deferred income has significantly increased
due to the receipt of pre-payments, with about half of the
subsidies coming under pre-financing at the launch of the
projects;
- we logged €0.7m in surety bonds on financial
assets;
- cash is at €10.3m as at 1st January, 2019,
compared to €13.3m a year earlier.
Tangible Assets slipped by €3.3m due to physical
investments limited to only €0.3m in 2018, while depreciation was
booked at €3.6m, including €2.9m alone for the Leuna Demo
plant.
Although the Group had otherwise received a new
repayable advance of €1.1m as part of the ISOPROD project financed
by the ADEME; reimbursements of loans and repayable advances for
€2m made it possible to reduce this debt heading.
CASH FLOW (€ thousands) |
2018 |
2017 |
2016 |
|
|
|
|
Operating
cash-flow |
-7,418 |
-9,066 |
-9,279 |
Net
profit (loss) |
-13,637 |
-14,253 |
-10,607 |
Amortisation (+) |
3,457 |
2,857 |
1,213 |
Change
in Working Capital Requirement |
2,762 |
2,330 |
115 |
|
|
|
|
Investing
cash-flow |
-974 |
-2,022 |
-6,120 |
Financing
cash-flow |
5,259 |
16,143 |
12,676 |
|
|
|
|
Cash as at 31 December 2018 was €10.3m The
cash-flow chart shows a significant reduction in cash flow relating
to operating activities (-€9.3m in 2015, -€9.1m in 2017 and -€7.4m
in 2018).
Moreover, it illustrates the net reduction in
physical investments: €6.1m in 2016, €2m in 2017 and €1m in 2018
(including €0.7m of financial assets).
Cash flow pertaining to funding business
activity was dominated by a capital increase of €6.2m in
September.
- 2018 Highlights and Recent Events
Validation of the principal market applications
for isobutene
Product batches at Leuna were used to test
market applications in very diverse fields, such as automotive
fuels, cosmetics, materials, aviation fuels and even household gas.
These tests were conducted in collaboration with key industrial
players, such as Audi, Butagaz, or Clariant, with which Global
Bioenergies has established partnerships. The appeal of these
different markets materialised at the end of the year with the
receipt of intentions to buy exceeding the production capacity of
the first plant (IBN-One), a significant portion of which concerns
high value-added markets (cosmetics and special fuels).
Measuring the related ecological benefits
The ecological benefits of Global Bioenergies
processes can be measured on two scales: globally through a
reduction in CO2 emissions, and then on a local and specifically
urban scale through a reduction in fine particle emissions from
petrol engines. In the case of ETBE, a well-known petrol additive
produced from isobutene and ethanol, measurements indicate that
savings in CO2 emissions should reach 70% with IBN-One. Validation
of the reduction in emission levels of fine particles was also
obtained: incorporation of isobutene derivatives in traditional
petrol would reduce emissions more than proportionately.
Support from French and European public
authorities
The Global Bioenergies Group as of now counts 5
projects that have received European subsidies, 4 of which having
been granted during the first half-year of 2018, providing the
Company with a total of more than 12 million euros. It continues to
benefit from the support of the French government through the
Investissements d'Avenir program (1.1 million euros received during
the first half-year after reaching a key milestone). On top of
that, the derivatives of renewable isobutene were officially added
to the list of biofuels eligible for tax incentive schemes.
About GLOBAL BIOENERGIES
Global Bioenergies is the only company in the
world to have developed a conversion process for renewable
resources (residual sugars, agricultural and forestry waste) into
isobutene, one of the petrochemical building blocks that can be
converted into ingredients for cosmetics, petrol, kerosene,
plastics and elastomers. Global Bioenergies continues to improve
the performance of its process, conducts trials on its demo plant
in Germany and is preparing the first full-sized plant in a
Joint-Venture with Cristal Union. Global Bioenergies is listed on
Euronext Growth in Paris (FR0011052257 - ALGBE).
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Contact
GLOBAL BIOENERGIESSamuel DubruqueCFOPhone :
01 64 98 20 50invest@global-bioenergies.com
[1] The annual financial report will be included in
the Registration Document to be filed with the AMF right after this
publication of annual result.
- GLOBAL BIOENERGIES PRESS RELEASE.pdf
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