France's Avril turns biodiesel focus to trucks from cars
(Reuters) - French oilseed group Avril plans to double output of its 100% biodiesel fuel aimed at fleet trucks in 2023, at the expense of standard biodiesel mixed in car fuel, after the business helped the group post record results last year, it said on Wednesday.
Created by French oilseed and protein crop growers, Avril is France's largest biodiesel and animal nutrition maker and a leading player in cooking oil and plant-based chemical products.
The focus on its higher margin Oleo100 fuel instead of standard biodiesel blended with petroleum diesel in cars would inevitably lead to a rise in imports of biodiesel by refiners, Avril Chief Executive Jean-Philippe Puig told reporters.
He was speaking after the group reported a 64% jump in core earnings, helped by higher prices, good market coverage ahead of the surge in commodities prices and cost cutting though Puig said the trend was unlikely to last this year as inflation and economic gloom weigh on demand.
The group plans to use 200,000 tons of its 1 million tons of biodiesel output on average in France for Oleo100 this year, up from 40,000 tons in 2021 and 100,000 tons in 2022.
"If we can do a little more we will, and this will mean even less for the standard diester (biodiesel) that goes into diesel available at petrol stations," Puig said.
Avril's sales rose 32% last year compared to 2021 to €9 B while earnings before interest, taxes, depreciation and amortization (EBITDA) were up 64% at €583 MM. Net profit stood at €218 MM, up 45%.
Puig stressed uncertain economic conditions and high volatility expected on agriculture and energy markets made forecasts difficult.
Rapeseed and sunflower prices reached record highs last year in the wake of Russia's invasion of Ukraine, the world's main exporter of sunflower seeds and products, before falling back well below pre-Ukraine war levels.
Comments