Ecoslops, the blank generation that brings oil to the circular economy, announces its unudited effects for the first part of the existing year ending June 30, 2020, approved through the Board of Directors at its September 24, 2020 assembly.
Vincent Favier, President and CEO of Ecoslops, reports:
During the first part of the year, and specifically in the quarter of this year, the Group’s activities were affected by the Covid-19 fitness crisis and have an effect on economic activities, as well as lowering oil costs caused by weaker global economic demand.
At the operational level, this resulted in:
– 37-day stop of the Sines unit in Portugal (April 18 to May 25), due to the closure or sharp slowdown in visitor activity, as a result, in the period, the P2R unit of Sines produced 11872 tonnes and sold 9887 tonnes (compared to 13,360 and 12,000 tonnes respectively as of June 30, 2019) , an 11% reduction in production volume and 18% in turnover.
– The complete closure of the Marseille unit site from 17 March to 11 May 2020 was followed by a slow return to activity (affected by delays in some deliveries and a minimisation of supplier productivity after blocking) The new start date of the site is estimated in the first part of 2021 than at the end of 2020.
– It is also planned to expand studies and structure Mini-P2R. La reception of the first unit in the first part of 2021.
– Implementation of part-time painting measures for the Paris headquarters and the Marseille site.
On the monetary side, the transitional closure of the Sines unit and the effect of minimizing the value of oil (average decrease in the value of Brent by 34% during the period) resulted in a minimisation of turnover of EUR 1. 5 million, or – 34%, similarly divided between the volume effect and the equity effect. In terms of net profit, the first part of 2020 ended with a loss of EUR 2. 3 million, a deterioration of EUR 1. 8 million from the first part of 2019.
The Group’s EBITDA is reduced to – € 0. 3 million for the Sinès unit in Portugal and – € 1. 2 million for the head and general expenses of Marseille.
A forged monetary structure
Despite the adequacy crisis, the Group remains endowed with a forged monetary structure, allowing it to continue its investments in the Marseille unit and the Mini-P2R, the desire to apply for a PGE (guaranteed loan through the state).
As of 30 June 2020, loose money amounts to EUR 7. 6 million compared to EUR 6. 0 million as of December 31, 2019, gross debt amounts to EUR 20. 2 million and equity to EUR 19. 3 million.
Net indebtedness at 30 June 2020 amounts to EUR 12. 6 million against a net debt of EUR 7. 2 million as of December 31, 2019, reflecting the era of investment in Marseille (EUR 4. 3 million in the first half).
Developments in the first part of the year
Marseille
Our subsidiary Ecoslops Provence, in which Total owns 25%, continued the structure of the P2R unit (30,000 tons of capacity) with, as indicated in the introduction, a complete closure from 17 March to 11 May 2020, followed by a slow resumption of the commissioning of the unit was postponed until the first part of 2021.
In addition to having an effect on the current fitness crisis, the allocation progresses as planned, both technically and industrially.
In the first part of the year, Ecoslops Provence drew the entire funding line (6. 5 million euros) of BNP Paribas / HSBC / Popular Mediterranean Bank.
Antwerp
Environmental and hazard impact tests have been introduced for structure entry permits and operational entry permit programs. These submissions are expected to take place until the end of 2020 and approvals until the end of 2021, when the structure is only just starting. commissioned in the first quarter of 2023.
As a reminder, the EI funding component is intended to finance the capital percentage of the Antwerp unit (EUR 8 million of the EUR 18 million total funding).
Mini-P2R
After a series of tests in the pilot edition in 2019, the design of the first commercial unit began in the first part of 2020. The company has met the main market expectations for this solution, i. e. for its new recoverability for used lubricating oils. As a reminder, the company signed two letters of intent: the first in January 2020 with Aqua Flore in Agadir, Morocco, and the time in June 2020 with Valtech Energy in Kribi, Cameroon.
The company has recently been in two rounds of negotiations, one of which is expected to be completed by the end of 2020. The company will market these sets through a marriage to a company founded in France to maximize responsiveness, maintain confidentiality and ensure the quality of production. The selection of the commercial spouse is recently underway and a resolution will be finalized in early October 2020.
Outlook and upcoming events
The company has applied for a “Seveso Haut” permit for the Sines unit in Portugal, which allows it to purchase a much larger amount of hydrocarbon waste than with the old “Seveso Bas” permit, which can increase the capacity of the garage from 5,000 cubic meters. 20,000 cubic meters, with no further investment in garage tanks, more detailed reports are needed. This increase in garage capacity will allow a much more opportunistic technique to waste purchases in the future. We look forward to downloading this authorization by the end of 2020 and enjoying all the benefits in 2021. The procedures for loading hydrocarbon waste from the ARA area and the administrative control of this new permit have been particularly slowed by the effects of the Covid-19 and hence our forecasts for the end of the year Materials are reduced. The company will benefit from any possible closure of the plant by developing 10-year maintenance plans in its tanks.
The five million euro draw of EI investment ended at the end of July 2020, for the structure of the Marseille unit and the structure of the first Mini-P2R unit.
Finally, the Group’s existing monetary position (EUR 10. 4 million at the end of August 2020) and long-term money flows (with an EI bank provision of EUR 8 million remaining for the Antwerp project) also allow us to finance our investment programme and expenditure. as a result of the deterioration of the market situation in our Portuguese operations.
The corporate aims to optimize the Portuguese unit, the imminent commissioning of the French unit and the preparation of the paintings of the Belgian unit, for the sets it owns.