Avantium N.V. (Euronext Amsterdam and Brussels: AVTX), a leading innovative chemical technology company dedicated to developing and commercialising proprietary technologies for the production of chemicals from renewable sources, today reports its 2021 half year results.
Key Business Developments in the First Half of 2021:
- Avantium Renewable Polymers continues to work towards making a Final Investment Decision (FID) concerning the potential construction of the planned FDCA (furandicarboxylic acid) flagship plant:
- Negotiations with banks and other parties continue around FDCA flagship plant funding.
- Avantium and a European feedstock provider have reached agreement on the terms of a strategic supply contract of high fructose syrup feedstock.
- Bas Blom is appointed Managing Director of Avantium Renewable Polymers, effective 15 August 2021.
- Avantium Renewable Chemistries made continued progress towards commercialisation with its Ray Technology™:
- Avantium and Cosun Beet Company announced the ambition to jointly construct and operate the first commercial plant for the production of plantMEG™ (mono-ethylene glycol) and plantMPG™ (mono-propylene glycol).
- Successful production of PEF (polyethylene furanoate) and PET polyesters with plantMEG™ from the Ray Technology™ demonstration plant.
- Avantium Catalysis recorded revenues of €4.3 million in the first half of 2021 (HY 2020: €4.0 million), with continued impact from COVID-19 travel restrictions.
- Today, Avantium announced that Mr. Nils Björkman has been nominated for appointment to its Supervisory Board for a term of four years.
Key Financial Developments in the First Half of 2021:
- Revenues increased in the first half of 2021 by 11% to €4.7 million (HY 2020: €4.3 million). Other income decreased by 26% to €3.3 million (HY 2020: €4.5 million), due to lower grant recognition in the first of half of 2021. In the first half of 2021, Total Revenues and Other income were €8.0 million (HY 2020: €8.8 million).
- Operating expenses decreased to €15.1 million (HY 2020: €15.7 million).
- The cash position was €43.4 million on 30 June 2021 (31 December 2020: €26.6 million):
- The cash outflow from operations in the first half was €9.6 million (HY 2020: €10.7 million).
- The improved cash position is primarily due to the successful €27.8 million capital increase through an accelerated bookbuild offering in April 2021. The net proceeds from the capital increase after bank and legal fees were €26.4 million.
- The loss for the half year was €-10.9 million (HY 2020: €-11.0 million).
Tom van Aken, Chief Executive Officer of Avantium, comments: “We have made significant commercial progress across our business over the last six months. We have expanded our expertise in all key areas of our business and advanced the commercialisation of our Ray Technology™. The new appointments we have made in our Renewable Polymers business unit and to our Supervisory Board increase the strength of our senior management and will help support our efforts to achieve success in commercialising our technologies.
We have secured a total offtake volume of over 50% of production capacity for our FDCA flagship plant and remain in negotiations with banks and other financial institutions for the remainder of our required financing to reach a positive FID.”