 |
|
|
 |
 |
| |
Bioenergy segment
Key financial information for the bioenergy segment may be summarised as follows:
The segment continued the start-up activities in 2008. The aim is to hold a diversified portfolio of bioenergy production projects. Investment commenced mainly in the upstream part of vegetable crops cultivation and at the year end the segment had operations in the Ukraine, India, Laos and Thailand and a presence in Singapore and Malaysia. Bioland Vinnitza cultivated approximately 15,000 hectares of wheat and soy in the Ukraine in 2008 and it continued to acquire rights over land. The organisation structure was strengthened during the year in particular through the employment of agricultural engineers with years of experience in the countries of the ex Soviet Union. Dhampur Sugar Distillery Private Limited in India, in which a 49% investment is held, finalised construction of the plant in Asmoli, near Delhi. It commenced production of ethanol and rectified molasses spirit, which it purchases from a nearby sugar refinery, in April. The commercial building located in Ventiane, the capital of Laos, was completed at the end of the year and the company has started looking for tenants. Moreover, 800 hectares of jatropha plants were planted. A new company was set-up in Thailand in June in order to commence growing jatropha crops locally. The search for oil palm plantations in Malaysia continued during the year, however the performance of the commodity markets and the resulting significant increase in the price of land has resulted in the postponement of these investments until stability is resumed in this sector.
Revenue consists of the sale of crops and to a greater extent the fair value measurement, less point of sale costs, of agricultural products relating to the autumn sowing in the Ukraine.
The operating loss was affected by agricultural and logistical problems experienced in the Ukraine, accompanied by lower production yields due to weather factors, while in Singapore, Malaysia and the United States, the fixed costs in place to meet the rapid expansion of the business were not covered due to the substantial delay in commencing commercial activities.
The charges from the holding and the start-up costs across the various countries also had an impact on the results.
The loss for the year comprises significant unrealised exchange losses (approximately Euro 22,000 thousand), resulting from the conversion of the balances denominated in the Ukrainian currency (Hryvnia) that weakened by almost 50% against the Euro during the year. The underlying assets in the Ukraine that were the subject of this devaluation include agricultural machinery and land rights for which the reference currency is either the Euro or US Dollars.
The net financial position is an indebtedness of Euro 47,083 thousand against an asset of Euro 2,600 thousand last year. This reflects the capital expenditure and the start-up costs.
The main capital expenditure took place in the Ukraine in respect of agricultural machinery to cultivate the leased land, and in Laos to finalise the commercial property.
Employee numbers increased by 231, and mainly comprise blue-collar workers involved in the agricultural activities in the Ukraine.
|
|
|
|
|
|
