By David Sachs
Verbio downgraded its fiscal 2024 outlook for earnings and net debt, blaming falsely labeled biodiesel imports from Asia that it said kept ethanol prices artificially low.
The German energy company said Monday that it now expects earnings before interest, taxes, depreciation and amortization for fiscal 2024 of between 120 million and 150 million euros ($131.4 million-$164.3 million). Previously, Verbio expected Ebitda for the year between EUR200 million and EUR250 million.
Verbio now expects net financial debt to reach between EUR145 million and EUR175 million, up from EUR110 million to EUR150 million.
The European Union said in December that it is investigating allegations by biodiesel producers that Chinese imports have been entering the EU at artificially low prices, hindering competition.
“The main reason for the forecast adjustment is the continued pressure on ethanol and [greenhouse-gas] quota prices, contrary to expectations, especially due to massive biodiesel imports from Asia, which were likely to have been falsely labeled,” Verbio said.
“After thorough examination, it can no longer be assumed that prices will recover sufficiently in the short term to achieve the previously expected result,” it added.
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