Vivergo Fuels, the biggest UK ethanol producer by capacity, said Monday it has steadily increased output in recent months, adding that a combination of oversupply in the European market and limited seasonal demand had led to lower prices.
The statement came as part of a trading update from Associated British Foods, which owns a 45% stake in the GBP350 million facility.
In January, ABF had said production consistency and volumes at the 420,000 cubic meters/year Hull-based plant had improved, without elaborating.
European ethanol spot prices hit a 45-month low of Eur442/cu m ($608/cu m) FOB Rotterdam on February 19, before recovering to Eur443.75/cu m Friday, according to Platts data. That represented a drop of 30% since July 1, when Vivergo started operations.
ABF said profit may be hit by a strong pound. Sterling hit a one-year high of 81.57 pence per euro on February 17.
Vivergo has been a regular shipper of ethanol to Rotterdam, Europe's biggest fuel trading hub, according to data from tanker agency Graypen.
Monday's update was the last prior to ABF entering the closed period for interim results to March 1, scheduled to be announced on April 23.
