Earnings Season – 5 Companies remain strong in wild 2020

Avantium focuses on scaling plants-to-plastics technologies in 2020 half-year report

In the Netherlands, Avantium N.V., a chemical technology company dedicated to developing and commercializing proprietary technologies for the production of chemicals from renewable sources, today reports its 2020 half year results with a focus on scaling plants-to-plastics technologies

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 income[1] 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,” said van Aken. “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.”