Key Business Developments in the First Half of 2020:
- Avantium Renewable Polymers continues to work towards taking an investment decision by the end of 2020 on the construction of a FDCA (furandicarboxylic acid) flagship plant:
- In January 2020, Chemie Park Delfzijl was selected as the location for the flagship plant;
- In the second quarter of 2020, the second part of the engineering phase (front-end engineering design) of the FDCA flagship plant commenced;
- Discussions with potential strategic partners are ongoing.
- In the first half of 2020, Avantium Renewable Chemistries successfully completed commissioning and start-up of its plant-based MEG (mono-ethylene glycol) demonstration plant.
- Avantium Catalysis recorded €4.0 million revenues in the first half-year of 2020 (HY 2019: €4.6 million). This 15% year-on-year decline is attributable to the impact of COVID-19.
Key Financial Developments in the First Half of 2020:
- In the first half of 2020, total revenues and other income1 increased from €7.1 million to €8.8 million. Consolidated first half 2020 revenues decreased by €0.9 million to €4.3 million (HY 2019: €5.2 million), €0.6 million of this decrease relates to Avantium Catalysis. Other income increased by €2.6 million to €4.5 million (HY 2019: €1.9 million), due to higher grant recognition.
- The net loss for H1 2020 was €11.0 million (HY 2019: €12.6 million).
- Operating expenses decreased to €15.7 million (HY 2019: €16.4 million including a €0.7 million one-time cost for an onerous contract). Depreciation, amortisation & impairment charges increased by €1.0 million due to growth investments.
- The cash position was €34.7 million on 30 June 2020 (31 December 2019: €45.4 million).
- Cash outflow in the first half of 2020 was €10.7 million versus €30.2 million in the first half of 2019. Excluding the one-off exit payment to BASF of €17.4 million made in early 2019, cash flow improved by €2.0 million.
Tom van Aken, Chief Executive Officer of Avantium, comments: “We have focused our efforts on the execution of our strategy of commercialising our plants-to-plastics technologies. We continue to work towards making an investment decision on the FDCA flagship plant by the end of the year, and our plant-based MEG demonstration facility is now operating. With three pilot plants operational we have made good progress in developing and diversifying our business. We have recorded somewhat lower revenues in our Catalysis business, and we have taken steps to offset this by effectively managing our cash without loss of focus or compromising our progress.
The health and safety of our employees, partners and contractors has been our top priority throughout the coronavirus pandemic. We adopted stringent measures early on to minimise the risks of transmission. In the first half of 2020, the COVID-19 pandemic had limited impact on our business.”
1Total revenues and other income consists of revenue earned through operations and other income by government grants. Finance income is included as part of net finance cost.
Avantium is a leading technology development company and a forerunner in renewable chemistry. Avantium develops novel technologies based on renewable carbon sources as an alternative to fossil-based chemicals and plastics. The company currently has three technologies at pilot and demonstration phase. The most advanced technology is the YXY® plant-to-plastics–technology that catalytically converts plant-based sugars into a wide range of chemicals and plastics, such as PEF (polyethylene furanoate). Avantium has successfully demonstrated the YXY Technology® at its pilot plant in Geleen, the Netherlands. The second technology is the Dawn Technology™ that converts non-food biomass into industrial sugars and lignin in order to transition the chemicals and materials industries to non-fossil resources. In 2018, Avantium opened the Dawn Technology™ pilot biorefinery in Delfzijl, the Netherlands. The third technology is called Ray Technology™ and catalytically converts industrial sugars to plant-based MEG (mono-ethylene glycol). Avantium is scaling up its Ray Technology™ and the demonstration plant in Delfzijl, the Netherlands opened on November 7, 2019. Next to developing and commercialising renewable chemistry technologies, the company also provides advanced catalysis R&D services and systems to customers in the refinery and chemical industries. Avantium works in partnership with likeminded companies around the globe to create revolutionary renewable chemistry solutions from invention to commercial scale.
Avantium’s shares are listed on Euronext Amsterdam and Euronext Brussels (symbol: AVTX). Avantium is included in the Euronext Amsterdam SmallCap Index (AScX). Its offices and headquarters are in Amsterdam, the Netherlands.
Forward-looking information / disclaimer
This press release may include forward-looking statements. Other than reported financial results and historical information, all statements included in this press release, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, are forward-looking statements. These forward-looking statements are based on our current expectations and projections about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Avantium’s ability to control or estimate precisely, such as future market conditions, the behaviour of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we have no intention or obligation to update forward-looking statements.