Abengoa releases 2015 results, reports lower ethanol margins

Source: By Erin Voegele, Ethanol Producer Magazine • Posted: Wednesday, March 9, 2016

Abengoa recently released condensed consolidated financial statements for the second half of last year, reporting that it generated nearly €5.76 billion ($6.34 billion) in revenues and €515 million in EBITDA during 2015, compared to €7.15 billion in revenues and €1.41 billion in EBITDA in 2014.

The company indicated a net loss of €1.21 billion last year, mainly due to negative impacts registered for an amount of €878 million based on the estimates made by the management of the company related to the implementation of several measures established in its viability plan.

According to Abengoa, at year-end and following provisions of IRFS 10 standards, the company has lost control of Atlantica Yield and has proceeded to deconsolidate the company and its subsidiaries, integrating them under the equity method.

Consolidated gross debt has been reduced by €888 million as of the close of 2015, when compared to the close of 2014. In addition, Abengoa said its total liabilities have decreased from €25.25 billion to €16.63 billion, mainly due to the deconsolidation of Atlantica Yield.

Within its report, Abengoa said it is in negotiations with its creditors to restructure the company, including its debt, with the objective of achieving a new financial structure in order to continue its business in a competitive and sustainable manner.

Abengoa’s industrial production segment, which includes its bioenergy business, reported revenues of €2.02 billion, with EBITDA of €40 million, compared to €2.14 billion and €271 million in 2014, respectively. The decrease was primarily attributed to lower crush margins in the U.S., the lower yield of the raw material in ethanol production process in Brazil, and the investment efforts in second generation technology performed at the cellulosic plant in Hugoton, Kansas.

Abengoa announced plans to file for preliminary creditor protection in late 2015. Days later, the company reportedly laid off staff at its Hugoton plant.

In January, the company announced its intent to sell its non-core assets, including its first-generation biofuel plants, as part of a new restructuring plan to avoid bankruptcy.

Abengoa Bioenergy U.S. Holding LLC and five of its U.S. bioenergy subsidiariesfiled for voluntary Chapter 11 bankruptcy in U.S. court on Feb. 24. The filings do not include Abengoa’s corn ethanol plants in Mt. Vernon, Indiana, and Madison, Illinois, the cellulosic ethanol plant in Hugoton, Kansas, or certain other subsidiaries of Abengoa Bioenergy. Several buyers have already expressed interest in buying the first-generation ethanol assets.