German Pellets reports strong 2014, startup of Louisiana plant

By Erin Voegele | May 15, 2015

German Pellets recently released 2014 financial results, reporting that despite somewhat difficult market conditions caused by mild weather and falling oil prices, the company ended the business year with an increase in turnover and operating results.

Sales revenues for the year were €593 million ($660.99 million), up from €556.9 million in 2013. Earnings before interest, taxes, depreciation, and amortization (EBITDA) was €50.2 million, up from €49.3 million in 2013. Net income for 2014 was €7.9 million, up from €4.5 million the prior year.

According to German Pellets, demand from the European industrial and power plant market increased last year, reaching 10 million tons, up from 9 million tons in 2013.

German Pellets also reported its pellet plant in Woodville, Texas, reached full capacity last year, contributing towards the increase in turnover and operating results. The company’s second U.S. pellet plant, located in Urania, Louisiana, was commissioned in early 2015 and is gradually increasing its production capacities.

“2014 was a difficult year, especially for the wood pellet heating market in Europe, starting with a mild winter and finishing with a reduction in the price of oil. Despite this, the market for wood pellets has proven its robustness. German Pellets managed to keep on growing,” said Peter H. Leibold, managing partner of German Pellets GmbH. Despite the mild winter, wood pellet consumption on the European heating market equaled that of the previous year with a total of 10 million tons. This is due to the stable market growth of heating using wood pellets. The expansion of the marketing structures enabled German Pellets to gain further shares in the wood pellet heating market. Direct business with end customers in Germany, Denmark and Austria was further increased thanks to take-overs, start-ups, targeted investments and the recruitment of more personnel.”

In its annual report, German Pellets also indicated that prospects for the current year are good, with rising demand for pellet heating in the European consumer market.