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GLOBAL BIOENERGIES: PUBLICATION OF THE HALF-YEAR RESULTS TO 30/06/2017

GLOBAL BIOENERGIES: PUBLICATION OF THE HALF-YEAR RESULTS TO 30/06/2017

Net loss for the Group of €7.8 million in the first half of 2017

€8.4 million net cash at 30 June 2017, immediately prior
to the €10.2 million capital increase

Evry, 2 October 2017 - Global Bioenergies (Euronext Growth Paris: ALGBE) publishes its half-year financial statements as at 30 June 2017, audited and approved by the Board of Directors meeting held on 29 September 2017.

The report presenting the Company's business and financial statements for the first half of 2017, as well as the report containing the Group's consolidated financial statements for the same period, are available on the Global Bioenergies website in the "Investors/Regulated information" section.

  • Group Profit & Loss Account as at 30 June 2017

€ thousands from 01/01/17 from 01/07/16 from 01/01/16
CONSOLIDATED FINANCIAL STATEMENTS to 30/06/17 to 31/12/16 to 30/06/16
6 months 6 months 6 months
Operating income 1,209 2,525 767
Operating expenses 8,655 8,016 7,200
Operating profit (loss) -7,446 -5,491 -6,433
Financial profit (loss) -368 -285 -245
Exceptional profit (loss) 15 -18 -32
Income tax N/A* -1,896 N/A*
Net profit (loss) -7,799 -3,898 -6,709

* Note: by convention, the Group does not record a Research Tax Credit (Crédit d'impôt Recherche) in its half-year positions at the end of June.

The breakdown of Group's operating expenses changed due to the acquisition of the Dutch company Syngip last February and the start of the amortisation of the Leuna demo plant. These two items respectively weighed €460 thousand and €700 thousand on the operating loss of the first half-year. The other operating expenses were stable compared to previous half-years.

Operating income depended largely on subsidies granted by Germany's Federal Ministry of Education and Research (subsidies totalling €6.1 million over the period from 2013 to 2017 for the construction and operation of the Leuna demo plant) and by the European Commission for adaptation of the process to use second-generation sugars (€4.4 million subsidy over four years starting in 2017).

  • Group Balance Sheet as at 30 June 2017

Assets (€ thousands) 30/06/17 31/12/16 Liabilities (€ thousands) 30/06/17 31/12/16
Intangible assets 1,271 69 Capital 184 168
Assets 12,069 12,182 Share premium 55,473 49,409
Financial assets 365 146 Retained earnings -40,673 -30,066
Profit (loss) -7,799 -10,607
Equipment subsidies 638 391
NON-CURRENT ASSETS 13,705 12,397 EQUITY 7,823 9,295
PROVISIONS 51 42
Inventories - Receivables - Prepaid Expenses 3,212 5,074 Conditional advances and loans 12,159 11,483
Cash and equivalents 9,322 8,066 Trade payables and related accounts 3,384 4,120
Other debts 2,821 597
CURRENT ASSETS 12,534 13,140 PAYABLES 18,365 16,200
TOTAL ASSETS 26,239 25,537 TOTAL LIABILITIES 26,239 25,537

The completion of the Leuna demo plant and the start of its amortisation caused a drop in assets for the first time in the financial statements of Global Bioenergies.

The acquisition of the Dutch start-up Syngip accounted for €1.14 million in the intangible assets, which corresponds to the difference between the acquisition value (€875 thousand) and the value of Syngip's equity on the date of acquisition (-€260 thousand).

The €10.24 million capital increase, which success was announced on 30 June 2017, was recorded in the second half since the 4 July date on the cash deposit certificate prevails. Therefore, this transaction is not reflected on this balance sheet.

  • Presentation of the Global Bioenergies Group's cash-flow as at 30 June 2017

CASH-FLOW (€ thousands) H1 2017 2016 2015
Operating cash-flow -3,736 -9,279 -8,840
Net profit (loss) -7,799 -10,607 -10,395
Amortisation (+) 1,097 1,213 979
Gain on asset disposal (-) - 138 -
Impact of the change in Working Capital Requirement 2,965 115 576
Investing cash-flow -1,180 -6,120 -4,488
Financing cash-flow 5,906 12,676 7,873

The cash-flow table illustrates the end of the major capital investment projects, which in the last few years were dominated by investments tied to the Evry laboratory and then the Pomacle-Bazancourt pilot plant and, most recently, the Leuna demo plant.

  • Highlights of the first half of 2017 and recent events

Start-up of the Leuna demo plant

The construction of the Leuna demo plant, which started in the first half of 2015, was completed in November 2016. The plant was started-up progressively, with each stage in the production of isobutene requiring successive testing and approval prior to the operating permit being granted. Bolstered by encouraging initial results, the teams are continuing to work on improving performance with the goal of gradually attaining the commercial targets.

Growth of industrial and commercial agreements

The Global Bioenergies Group has built up a European consortium that includes Clariant and Ineos, European leaders in the chemical industry; the four-year venture aims to produce isobutene derivatives from wheat straw. Europe granted this consortium a €9.8 million subsidy, €4.4 million of which will go to Global Bioenergies.

In addition, Global Bioenergies joined forces with the Butagaz group to incorporate batches of bio-isobutene into butane and propane streams, following a series of tests to certify the compliance of the isobutene created through the process developed by Global Bioenergies.

Acquisition of Syngip B.V.

In February, Global Bioenergies finalised the acquisition of Syngip B.V., a Dutch start-up that specialises in converting third-generation resources (especially gases emitted by steel mills) into fuels and materials. This work, which is still in the upstream R&D phase, can potentially convert waste gases harmful to the environment into useful products that correspond to major markets.

Capital increase through private placement (recorded in the second half-year)

On 29 June, Global Bioenergies launched a capital increase through a private placement. The transaction was successfully completed with the issue in early July of 640,000 new ordinary shares, which brought in €10.24 million.

François-Henri Reynaud, Chief Financial Officer of Global Bioenergies, announces: "The Company's cash at 29 September 2017 (€17 million, unaudited) provides us with full visibility for 2018."

Marc Delcourt, co-founder and CEO of Global Bioenergies, declared: "The recently announced success at our demo plant will allow us to confidently start our next chapter. We have clearly identified our goals and we have the means to achieve them."


About GLOBAL BIOENERGIES

Global Bioenergies is one of the few companies worldwide, and the only one in Europe, that is developing a process to convert renewable resources into hydrocarbons through fermentation. The Company initially focused its efforts on the production of isobutene, one of the most important petrochemical building blocks that can be converted into fuels, plastics, organic glass and elastomers. Global Bioenergies continues to improve the performances of its process, operates its demo plant in Germany, and prepares the first full-scale plant through a Joint-Venture with Cristal Union, named IBN-One. Global Bioenergies is listed on Euronext Growth Paris (FR0011052257 - ALGBE).

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Contact

GLOBAL BIOENERGIES
François-Henri Reynaud
Chief Financial Officer
Phone: +33 1 64 98 20 50
Email: invest@global-bioenergies.com

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Source:GLOBAL BIOENERGIES