Australian Biodiesel Group to become third biofuels company to list on stock exchange


Market capitalisation close to $110m: It has been selling 20
million shares at $1 each, but with more than 80 per cent of its shares
remaining in private hands, its market capitalisation would be closer
to $110 million, making it Australia’s largest listed dedicated biofuel
producer. The company hoped to hit the boards on December 14.

Revenue forecast of $54.2m: Australian Biodiesel’s plant at
Berkeley Vale in NSW is believed to be the largest in Australia, and
produces diesel from animal fat, palm oil and waste cooking oil,
usually for use in fuel blends containing traditional petro-diesel. The
company forecast revenue of $54.2 million in 2006, with net profit
expected to be $8.2 million.

P/E ratio dependent on Narangba facility: Its full-year price
earnings ratio of 13.5 times was high, but the company claimed a
ramp-up in production in the final quarter of next year would result in
a P/E ratio of just 7.8 times for that period. This is dependent on
Australian Biodiesel constructing its second production facility at
Narangba in Queensland on time and to budget. At 160 million litres per
year of capacity, it would be four times the size of Berkeley Vale.

The Australian Financial Review, 3-/12/2005, p. 46

Source: Erisk – 

Leave a Comment

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.