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DGAP-News: KTG Energie AG: EEG amendment secures sales and earnings base

July 2, 2014

DGAP-News: KTG Energie AG / Key word(s): Miscellaneous KTG Energie AG: EEG amendment secures sales and earnings base 02.07.2014 / 13:52 --------------------------------------------------------------------- EEG amendment secures sales and earnings base - Over EUR75 million sales p.a. guaranteed in the long-term through preservation of the status quo - Biological waste offers new opportunities - Capacity expansion to 50 MW fully on track Hamburg, July 2, 2014 - KTG Energie AG (ISIN: DE000A0HNG53) welcomes the EEG amendment regarding the renewed improvement preserving the status quo to safeguard the amount of the feed-in tariff, the term of 20 years and the priority feed-in of all biogas installations put into operation up to July 31, 2014. The expansion of biogas installations is running according to schedule, so that the Executive Board is confident that it will be able to extend capacity from 43 megawatts at present to 50 megawatts by July 31, 2014 - and thus to achieve the goal of 50 MW more than one year earlier than originally planned. The feed-in tariff for 20 years from the time of commissioning, which is favorable in comparison with the planned EEG amendment, thus applies for the total capacity of 50 megawatt. The earnings base will thus increase to more than EUR75 million per year and the EBITDA base to considerably more than EUR20 million. Growth opportunities through acquisition, optimization and biowaste utilization There has been a crucial improvement compared with the draft - for all installations the actual maximum performance of an installation now applies as the expansion limit. The guarantee for supporting power production will now be defined to 95% of the power installed on July 31, 2014. With an average capacity utilization of over 92%, which is what KTG Energie currently achieves, support for the total amount of power produced will still be guaranteed and additional development potential also exists. In particular, the acquisition and optimization of installations that have only achieved low capacity utilization to date will thus be ensured, as the amendment will guarantee additional power generation potential up to 95% of the technically installed power according to EEG 2014. "Acquisition and optimization of installations that are producing well below their theoretical capacity will thus remain an additional growth opportunity for us. However, the most important point is that our sales and earnings from existing installations are ensured in the future," says Dr. Thomas Berger, CEO of KTG Energie AG. In addition, the utilization of biological waste, which has now been included in the EEG, offers opportunities. "We envisage further growth and earnings opportunities in this area, as biological waste as a substrate is considerably more cost-effective than the catch crops that we use. Our parent company KTG Agrar can supply us with biological waste from the food production industry", Berger points out. KTG Energie is basing its future growth strategy on four pillars - favorable acquisition opportunities, additional optimization potential of existing installations, as well as new opportunities in the market for mobile heat transfer and the construction of biogas installations that use agricultural waste material and biowaste. Forecast raised following the strong first half-year In the first half-year of 2013/2014 (November through April) KTG Energie AG increased sales by 38% to EUR29.82 million, in comparison with the same period in the previous year, according to preliminary calculations. At the same time, EBITDA increased by 34% to EUR8.5 million. EBIT also rose by 34% to EUR5.5 million. Adjusted for the included trading volume (EUR1.2 million), the EBITDA margin improved by 1.2 percentage points to 29.7% and the EBIT margin increased by almost 1 percentage point to 19.2%. Based on the positive trend in the first half-year, the Executive Board raised its forecast for the current fiscal year and is now anticipating sales of at least EUR65 million (previously: up to EUR65 million), EBITDA of at least EUR18 million (previously EUR16 to EUR17million) as well as an EBIT of at least EUR11.5 million (previously EUR9 to EUR9.5 million). About KTG Energie AGKTG Energie AG, based in Hamburg, is specialized in the production of renewable energies from renewable raw materials. To this end, the company has been operating biogas plants in Germany since 2006 and covers the entire value added chain from the planning and construction to the operation of the systems. Sales quantities are guaranteed through the Renewable Energy Act (EEG) for a period of 20 years at fixed conditions. Today, over a quarter of a million people are already supplied with clean, environmentally-friendly energy. As a subsidiary of the agricultural company KTG Agrar AG, the supply of renewable raw materials - particularly catch crops, grass and straw - is guaranteed in the long term. KTG Energie currently employs around 65 staff and has more than doubled sales volume in the short fiscal year 2013 (January through October 2012: around EUR23 million), in comparison with the first ten months of the previous year, to EUR50.9 million. The operating result (EBITDA) increased by 97% to EUR13.2 million (January through October 2012: EUR6.7 million) and EBIT increased to EUR8 million. The individual company KTG Energie AG achieved a profit of over EUR3 million, of which it distributed almost 80% as dividends to the shareholders (EUR0.40 per share). The company has been listed on the Frankfurt Stock Exchange since 2012. Financial Calendar: Publication of Half-Year Report July 22, 2014 4th Zurich Capital Market Conference (ZKK) September 10, 2014 Bond: Annual interest payment September 28, 2014 18th Munich Capital Market Conference (MKK) December 9-10, 2014 Contact Investor Relations / Press Tobias M. Weitzel BSK Becker+Schreiner Kommunikation GmbH Phone: +49 2154-8122 16 E mail: weitzel@kommunikation-bsk.de End of Corporate News --------------------------------------------------------------------- 02.07.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: KTG Energie AG Ferdinandstr. 12 20095 Hamburg Germany Phone: +49 40 76755372 Fax: +49 40 76755374 E-mail: info@ktg-energie.de Internet: www.ktg-energie.de ISIN: DE000A0HNG53, DE000A1ML257, WKN: A0HNG5, A1ML25 Listed: Freiverkehr in Berlin, DÜsseldorf, MÜnchen, Stuttgart; Frankfurt in Open Market (Entry Standard) End of News DGAP News-Service --------------------------------------------------------------------- 276327 02.07.2014


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