Company says Wilton plant has bolstered operating profit and revenues

CropEnergies says work at its Ensus plant was pivotal in driving annual operating profit to £84m, which represents the highest point since the company’s foundation in 2006.

The update comes after bosses last month revealed they expected operations at the factory, based at Wilton, near Redcar, to bolster income and give shareholders a dividend boost.

Confirming the latter has now been approved, they added annual production of bioethanol, helped by Ensus, was up from 837,000 cubic metres to 1,030,000 cubic metres.

Revenues stood at £688m, which was 11 per cent higher on a year ago.

The positive results come after officials embarked on a turnaround plan for Ensus, which included pausing work for a number of months to improve the factory’s reliability after falling prices and oil’s sluggish value forced the firm to cut jobs.

However, the site, which employs in the region of 100 people, has since undergone a renaissance and is operating at full capacity, alongside CropEnergies’ other European bases.

Speaking today (Wednesday, May 17), upon the release of CropEnergies’ results, which covered the period to February 28, Joachim Lutz, chief executive, said he was delighted with the business’ progress in what can be an unpredictable sector.

He added: “All of our plants have been operating at high-capacity since July 2016, and one of the main reasons for this is that we have further developed them, particularly Wilton.

“We took advantage of the 15-month shutdown there to carry out numerous improvements with a view to optimising production and reducing energy consumption.

“Overall, we have strengthened our position as the leading bioethanol producer in Europe.”

Germany’s CropEnergies took on the Ensus Limited business as a UK subsidiary in 2013, with its Wilton plant using wheat to create bioethanol that is added to petrol.

Remaining protein and grain is used to make animal feed and carbon dioxide for the soft drinks and food market and Mr Lutz revealed the business expects a slight increase in demand across its next financial year.

However, he reiterated a previous warning that EU uncertainty over bioethanol use in the transport sector could impact operations.

He added: “Developments in the bioethanol market will confront us with challenges, though we have a good starting position.

“However, the lack of clarity about the political framework in Europe after 2020 is causing uncertainty.

“The European Commission’s view is that the proportion of bioethanol, which is established, clean and produced sustainably from crops in Europe, should fall sharply by 2030.

“It justifies its intention by citing alleged doubts about the sustainability of renewable fuels from arable crops.

“These accusations are devoid of foundation.”

Ensus has endured a chequered past, with falling prices and oil’s plummeting value compounding low demand, poor harvests, rising energy costs and even a bad smell, which all hindered production following its start at the beginning of the decade.