KTG Agrar plans to pay out first ever dividend
Farmland and biogas as success factors in the economic crisis
Hamburg, 24 June 2010 – KTG Agrar AG (ISIN: DE000A0DN1J4) has grown strongly since its IPO in November 2007. The agricultural company has increased its farmland from 14,000 hectares to over 30,000 hectares, of which some 6,000 hectares are owned by the company - compared to only 2,100 hectares in mid-2007. During this period, the biogas production capacity has been expanded from 6.5 megawatts to over 11 megawatts, which is sufficient to provide 20,000 households with clean energy from renewable resources. These investments have paid off, with KTG Agrar’s net income for the year growing by 30% to EUR 5.6 million in 2009 in spite of the global economic crisis. The company now intends to give its shareholders a share in this positive performance. “In the past years, we have sowed the seeds, now we begin to harvest,” says CEO Siegfried Hofreiter.
At the Annual General Meeting in Hamburg on 2 July 2010, the Management Board and the Supervisory Board will propose a dividend of EUR 0.10 per share. “The fact that we will pay out our first-ever dividend in these challenging economic times underlines the sustainability of our business model,” says Siegfried Hofreiter. “The cultivation of agricultural resources and the integrated production of renewable energy make KTG Agrar a largely non-cyclical business.”
KTG Agrar will rely on profitable growth also in future. The 2010 agricultural season has been positive so far. Following the harsh winter, the seeds have grown well and promise a good harvest. Moreover, stock exchange prices suggest that this year will see higher agricultural commodity prices than last year. The expansion of the biogas segment is also proceeding as planned. A 3.2 MW plant is currently under construction in Seelow. This will be KTG Agrar's first biomethane plant. The biogas will be upgraded to natural gas standards and then be fed directly into the regional gas grid. Several other projects are at an advanced approval stage. “Everything points to another record year,” says Siegfried Hofreiter.