Ekopol Upper Silesian Holding has published its financial results for the third quarter of 2024. In the past quarter, the company generated gross sales revenue of PLN 72.3 million, representing a 22% year-on-year increase. At the same time, EBITDA of PLN 803.5 thousand suggests an increase in profitability by 42% year-on-year. The company is on the verge of obtaining distribution authorizations for synthetic diesel oil (HVO100). It also plans to expand its target group of HVO offer to new entities – railway sector companies.
“We consistently implement our strategy, which translates into the dynamics we achieve. In the past quarter, we recorded a satisfactory EBITDA profit increase of 42% compared to the same period last year. The introduction of HVO oil to our offer will be a positive driver of profitability in the coming periods. We are glad to finalize the final stage of obtaining necessary approvals to start distribution. Due to legal restrictions in Poland, fuel is not yet widely available for retail customers, but everything indicates that it is only a matter of time when it will appear in the offer of the first companies. We estimate that if everything goes according to plan, legal regulations will allow us to start distribution by the end of the first quarter of 2025. We are proud to be part of the energy transition and we are striving towards a sustainable fuel sector.” says Andrzej Piecuch, CEO of Ekopol GH.
The favourable macroeconomic environment means that the HVO market is on a growth path. Projections show that by 2030 production capacities will double, reaching $44.3 billion, compared to $14.5 billion in 2022, representing a compound annual growth rate (CAGR) of 15%. The dynamic market development is driven by increasingly restrictive environmental regulations and government programs, particularly in Europe and North America. An example is the EU RED II Directive, which sets a target of a 14% share of renewable energy in transport by 2030, thereby providing a strong political framework for biofuels.
In the past period, the company purchased a new MAN TGM tanker equipped with a 20,000-litre tank. The tanker was designed in connection with the introduction of eco-friendly fuels to the company’s offer. There are also ongoing works on improving new 5,000-litre tanks dedicated to the storage of synthetic fuels. Additionally, the company’s board has officially announced the expansion of its target HVO offer group, in which it also sees a place for the railway sector.
“Considering the current market environment, railways still need diesel fuel. In recent years, various solutions have been tested, but hybrid drive failed to meet expectations and hydrogen-based solutions still need time to develop. Combustion engines remain a safe and proven solution, although they unfortunately contribute to environmental pollution. HVO100 diesel oil comes in handy, which emits significantly less carbon dioxide and can be used in traditional engines. Additionally, such a solution allows for greater savings due to the absence of a need to replace the engine with a hybrid or electric one,” says Sebastian Pyka, Deputy CEO of Ekopol GH.
Source: https://managerplus.pl/ekopol-gh-ze-wzrostem-ebitda-o-42-w-iii-kw-r-r-85803
