Ecoslops : 2023 annual results
Paris, Avril 18, 2024, 7:30 pm - Ecoslops, the
cleantech company that brings oil into the circular economy,
announces its results for the year ended December 31, 2023, as
approved by the Board of Directors at its meeting on April 18,
2024.
- Disposal of Ecoslops Provence, enabling refocusing on
profitable, forward-looking activities
- EBITDA 2023 breakeven on activities retained by the
Group
- ISCC PLUS certification obtained for Ecoslops
Portugal
Highlights of the 2023 financial year
- Disposal of Ecoslops Provence in progress at year-end and
finalized on February 29, 2024 as previously announced. As a
result, the Group's consolidated net result has been heavily
impacted by the now non-recurring Ecoslops Provence-related costs
of €5.5M€.
- Satisfactory results in Portugal, with an EBITDA of 2.4M€,
despite lower business volumes and oil prices than in 2022.
- Group refocused on Ecoslops Portugal and the development of the
Scarabox®, profitable and growth-generating activities
- Savings plan in place for support functions to adjust to the
new scope (-20%, i.e. -0.5M€)
Consolidated income statement 2023 (in M€) - Analytical
presentation(Based on audited financial statements, reports in
progress)
Considering the disposal of Ecoslops Provence,
the analytical presentation of the consolidated income statement
below takes into account the Group's new scope and isolates the
non-recurring impact of costs relating to Ecoslops Provence and its
disposal, amounting to (5.5)M€, namely:
|
|
2022 |
2023 |
|
Annual loss Ecoslops Provence |
(2,2) |
(2,9) |
|
Provision for deconsolidation |
|
(1,8) |
|
Restructuring fees |
|
(0,7) |
|
Total |
(2,2) |
(5,5) |
|
|
|
31/12/2022 |
|
31/12/2023 |
|
Variation |
| |
|
|
|
|
|
|
|
Refined products (P2R) |
|
12,3 |
|
7,9 |
|
-4,4 |
|
Scarabox |
|
0,3 |
|
0,0 |
|
-0,3 |
|
Port services & others |
|
2,1 |
|
2,4 |
|
0,3 |
|
Total Turnover |
|
14,7 |
|
10,3 |
|
-4,5 |
|
|
|
|
|
|
|
|
|
Gross Margin |
|
9,0 |
|
7,0 |
|
-2,1 |
|
Gross Margin rate |
|
61% |
|
68% |
|
|
| |
|
|
|
|
|
|
|
Personnel expenses |
|
-3,3 |
|
-3,1 |
|
0,2 |
|
Other expenses |
|
-3,7 |
|
-3,8 |
|
-0,1 |
|
Taxes |
|
-0,1 |
|
-0,2 |
|
-0,1 |
| |
|
|
|
|
|
|
|
EBITDA |
|
2,0 |
|
-0,1 |
|
-2,1 |
| |
|
|
|
|
|
|
|
Depreciation / Provision |
|
-1,4 |
|
-1,5 |
|
-0,1 |
| |
|
|
|
|
|
|
|
Financial result |
|
-1,1 |
|
-1,3 |
|
-0,2 |
| |
|
|
|
|
|
|
|
Corporate tax |
|
0,4 |
|
0,3 |
|
-0,1 |
| |
|
|
|
|
|
|
|
Result before Restructuring / E. Provence |
|
-0,2 |
|
-2,6 |
|
-2,4 |
| |
|
|
|
|
|
|
|
Result linked to Ecoslops Provence |
|
-2,2 |
|
-4,8 |
|
-2,6 |
|
Restructuring costs |
|
0,0 |
|
-0,7 |
|
-0,7 |
| |
|
|
|
|
|
|
|
Net result |
|
-2,4 |
|
-8,0 |
|
-5,7 |
|
Net result - Part for the Group |
|
-1,7 |
|
-7,3 |
|
-5,6 |
Ecoslops Portugal's sales fell by 28%, from
14.4M€ in 2022 to 10.3M€in 2023. The Port Services business grew by
14%, to 2.4M€, while the Refined Products business recorded a drop
in sales, from 12.3M€ in 2022 to 7.9M€ in 2023. This decline can be
broken down into: -20% due to the volume effect, -19% due to the
price effect (the average Brent price having fallen from €94/bbl in
2022 to €76/bbl in 2023) and +3% due to the product mix. Over the
period, the unit produced 20,071 tonnes of refined products,
compared with 24,509 tonnes in 2022, and sold 17,693 tonnes,
compared with 22,165 tonnes the previous year. This drop in volume
is essentially attributable to a shortage of inputs compared with
2022.
Gross margin rose from 61% to 68%. This increase
is due in part to the Refined Products business, whose margin rate
rose from 60% to 61%, and in part to the business mix, with the
share of port services in sales rising sharply.
As a result, gross margin stands at 7M€, down
2.1M€ on 2022.
Despite the inflationary context, the Group has
contained its operating expenses. All indirect costs (personnel,
rent, service providers, etc.) have been the subject of a savings
plan that will result in a reduction of (0.5)M€ between 2022 and
2024.
Based on the Group's new scope, EBITDA is close
to breakeven, at (0.1)M€, down by 2.1M€ compared to 2022, entirely
due to the decrease in gross margin.
Net financial expense was a negative 1.3M€. This
mainly comprises 1M€ of interest expense on the EIB loan.
Corporate income tax amounted to 0.3M€, mainly
comprising the research tax credit.
Consolidated balance sheet at December 31, 2023 (in
M€)
(Based on audited financial statements, reports
in progress)As the contract for the sale of Ecoslops Provence was
signed before year end, and its closing before the accounts’
approval by the Board of Directors, the contribution of Ecoslops
Provence to the consolidated balance sheet is presented in the 2023
financial statements on a single, separate line "Net assets
Ecoslops Provence".This has a major impact on balance sheet
variations:
|
|
31/12/2022 |
31/12/2023 |
Var. M€ |
|
Intangible assets |
1,1 |
0,9 |
(0,2) |
|
Tangible assets |
33,2 |
12,0 |
(21,2) |
|
Financial assets |
0,8 |
2,4 |
1,6 |
|
Fixed assets |
35,1 |
15,3 |
(19,8) |
|
Inventory |
1,3 |
1,6 |
0,3 |
|
Trade receivables |
4,0 |
1,6 |
(2,4) |
|
Other receivables |
1,7 |
1,1 |
(0,6) |
|
Deferred tax asset |
1,5 |
1,5 |
(0,0) |
|
Cash and cash equivalent |
6,9 |
3,2 |
(3,7) |
|
Prepaid expenses |
0,9 |
0,7 |
(0,2) |
|
Current assets |
16,3 |
9,7 |
(6,6) |
|
Net asset Ecoslops Provence |
|
9,1 |
9,1 |
|
Total Assets |
51,4 |
34,1 |
(17,3) |
| |
|
|
|
| |
31/12/2022 |
31/12/2023 |
Var. M€ |
|
Capital & Reserves |
16,0 |
14,2 |
(1,8) |
|
Investing subsidy |
1,5 |
1,4 |
(0,1) |
|
Minority shareholders |
(0,1) |
(0,8) |
(0,7) |
|
Net result - Part for the Group |
(1,8) |
(7,3) |
(5,5) |
|
Equity |
15,6 |
7,5 |
(8,1) |
|
Conditional advance |
0,8 |
0,8 |
0,0 |
|
Prov. for Risks & Charges |
0,1 |
1,9 |
1,8 |
|
Financial debt |
29,2 |
20,6 |
(8,6) |
|
Trade payables |
4,0 |
2,0 |
(2,0) |
|
Social and tax liabilities |
1,0 |
0,5 |
(0,5) |
|
Other payables |
0,7 |
0,7 |
0,0 |
|
Current liabilities |
5,7 |
3,2 |
(2,5) |
|
Total Liability & Equity |
51,4 |
34,1 |
(17,3) |
Fixed assets fell by 19.8M€, comprising 20.4M€
due to the sale of Ecoslops Provence, 1.3M€ for depreciation and
amortization, 0.4M€ for capital expenditure, and 1.6M€ for the
reclassification of the receivable from Valtech Energy (previously
classified under trade receivables and now under non-current
financial assets).Current assets, excluding cash and cash
equivalents, fell by 2.9M€, of which 1.3M€ related to the sale of
Ecoslops Provence and 1.6M€ to the reclassification of the
receivable from Valtech Energy as a financial fixed asset.As
indicated above, a provision for contingencies and charges of 1.8M€
has been booked to cover the impact of Ecoslops Provence's exit
from the scope of consolidation, set for January 1, 2024.Financial
debts amounted €20.6M€, down by 8.6M€ compared with 2022. This
reduction is due, on the one hand, to accrued interest on European
Investment Bank ("EIB") debt (+0.9M€) and, on the other hand, to
the sale of Ecoslops Provence (9.5M€), all debt being taken over by
the buyer as part of this sale.As the Group's scope and profile
have been significantly impacted by the sale of Ecoslops Provence,
Ecoslops SA and the EIB have entered into discussions to amend the
terms and conditions of the existing financial agreements, taking
into account the Group's updated cash flow generation capacities.
As a reminder, 8M€ of the 10M€ granted by the EIB were dedicated to
finance Ecoslops Provence, a business sold at the beginning of
2024.Finally, current liabilities decreased by 2.5M€, of which
3.0M€ is attributable to the disposal of Ecoslops Provence and
+0.5M€ to the increase in trade payables.
Financial position and cashflows
At December 31, 2023, the Group had nearly 3.2M€
in cash, of which 2.4M€ was available (taking into account a 0.8M€
conditional advance on investment grants), and net debt of 18.2M€
(vs. 23.2M€ at December 31, 2022). Cashflow can be analyzed as
follows:
| |
|
Exercice 2023 |
| |
|
|
|
EBITDA |
|
(0,1) |
|
Restructuring costs |
|
(0,7) |
|
Corporate tax |
|
0,3 |
|
Investment subsidy recognition |
|
(0,1) |
|
Operating working capital variance |
|
(0,4) |
|
Operating cashflow |
|
(1,0) |
|
Investments |
|
(0,4) |
|
Investing cashflow |
|
(0,4) |
|
Ecoslops Provence SHL |
|
(1,3) |
|
Loans |
|
(0,1) |
|
Interests paid |
|
(0,4) |
|
Financing cashflow |
|
(1,8) |
|
Cash variance |
|
(3,2) |
| |
|
|
|
Opening cash balance |
|
6,9 |
|
- Disposal Ecoslops Provence |
|
-0,4 |
|
Closing cash balance |
|
3,2 |
|
Variance |
|
(3,2) |
Operating cashflow came to (1.0)M€, impacted by
(0.7)M€ in non-recurring restructuring costs, relating in
particular to the disposal of Ecoslops Provence. The negative
change in WCR stems on the one hand from Ecoslops Portugal for
(1.2)M€ (taking into account an import of slops carried out in
December 2023) and on the other hand from Ecoslops SA for 0.8M€
(increase in trade payables linked to restructuring costs
incurred).Financing activities resulted in a net cash outflow of
1.8M€, mainly comprising a 1.3M€ current account contribution to
Ecoslops Provence (a non-recurring outflow considering the sale of
Ecoslops Provence in February 2024) and 0.4M€ in interest on
borrowings. The closing of the sale of Ecoslops Provence took place
on February 29, 2024, when Ecoslops SA received payment of 8M€.
Part of this payment gave rise, on the same day, to a repayment of
sums due to the EIB in respect of 2023, amounting to 1.9M€ (0.5M€
in amortized capital and 1.4M€ in interest and royalty fees). On
completion of this transaction, Ecoslops SA's net debt was 10.3M€,
halved compared with December 31, 2022, and its free cash position
was 7.2M€.
Strategy and developments
Ecoslops, now refocused on its historic Sines
business and the development of the Scarabox®, now has the
financial and human resources to match its roadmap.
Sines
The Portuguese unit's business is correlated to
oil prices and supplies, and generates an average EBITDA of
2.2M€/year. The subsidiary is financially autonomous and raises its
own financing. As the concession in the Port of Sines is due to
expire at the end of 2027, discussions have already begun to
anticipate its renewal, with a possible extension to 2037.The
recently obtained ISCC PLUS certification is also a very positive
factor insofar as many customers are looking for products with this
sustainability label.
Scarabox®
This business, born of repeated requests from
numerous prospects over the years, got off to a slower start than
expected. After the construction and delivery of the first unit for
Valtech Energy in Cameroon, assembly and start-up work was hampered
by a lack of local human and financial resources. Ecoslops, for its
part, was faced at the same time with the difficulties of Ecoslops
Provence, and was unable to make up for these delays. The
refocusing of Ecoslops means that the necessary technical and
financial resources can now be dedicated to this activity. As
regards Ivory Coast, a letter of intent was signed at the beginning
of the year between Ecoslops, Parlym and SIR (Ivory Coast’s
national refinery with a capacity of 4 million tonnes), under which
SIR is to take a 5% stake in the local company and be given a
directorship.
To sum up, Ecoslops, having refocused on
profitable, forward-looking activities and aligned its costs
accordingly, is now focused on successfully completing the next
stages of its plan, namely:- Structured, long-term renegotiation of
the EIB facility (nominal 9.5M€, initial maturity 2027)- Renewal of
the concession in the Port of Sines with GALP- Securing medium-term
supplies for the Sines plant- Development of the Scarabox®
(Cameroon, Ivory Coast, other prospects...)
Gouvernance
The Board of Directors is made up of members
with seniority and experience of the Group's activities and issues,
and of its sector. It has made a significant contribution to the
strategic decisions taken in 2023, and has supported management in
the execution of its decisions. It is therefore important for the
Group to be able to count on the continuity of this Board.
Accordingly, at the forthcoming Annual General Meeting on June 11,
shareholders will be asked to renew, without further nomination,
the mandates which expire on that date, with the exception of that
of Mr. Bindschedler, who is not standing for renewal.
ESG
On June 2, 2023, the Group published its fourth
sustainability report, covering the 2022 financial year.The Group's
commitment to continuous improvement is illustrated by the further
rise in its ESG 2023 rating for 2022 from the Ethifinance ESG
Campaign (formerly Gaïa Research). The company confirms its
performance, now ranked 24th/310 (vs. 39th/371 in the previous
campaign) in the general panel, 10th/416 in the panel of companies
with sales of less than 150M€ (vs. 14th/126 in the previous
campaign) and 4th/272 in the industry panel (vs. 7th/76 for
2021).In addition, the Solar Impulse Foundation's "Efficient
Solution" label, focused on promoting efficient, cost-effective
solutions to protect the environment, was successfully renewed in
January 2024.Finally, in December 2023, Ecoslops Portugal obtained
ISCC PLUS certification for all its refined production. This
certification attests the product compliance with sustainability
and traceability requirements, and is recognized by all
stakeholders for recycled products.
Outlook for 2024
In 2024, Ecoslops Portugal forecasts production
of 24,500 tonnes, representing sales of around 13M€ (including port
services) based on current Brent prices.
In 2024, Ecoslops also aims to contract the sale
of a new Scarabox in Ivory Coast.
Financial Agenda
Annual General Meeting: June 11, 2024
Publication of 1st half 2024 sales: July 15,
2024
Publication of half-year results: September 26,
2024
ABOUT ECOSLOPSEcoslops is listed on Euronext
Growth in Paris Code ISIN: FR0011490648 - Ticker: ALESA / PEA-PME
eligible Investor Relations: ir@ecoslops.com - +33 (0)1 83 64 47
43
Ecoslops is the cleantech that brings oil into
the circular economy thanks to an innovative technology allowing
the company to upgrade oil residues and used lub oil into new fuels
and light bitumen. The solution proposed by Ecoslops is based on a
unique micro-refining industrial process that transforms these
residues into commercial products that meet international
standards. Ecoslops offers an economic and more ecological solution
to port infrastructure, waste collectors and ship-owners through
its processing plants.
- PR_18apr24_ECOSLOPS_2023_RESULTS
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