New deal to stabilise AEB Amsterdam

AEB Amsterdam
03.07.2020 − 

AEB Amsterdam has reached a refinancing agreement with banks and the city of Amsterdam, which owns the waste treatment plant operator. AEB announced on Thursday that the city would be prepared to make €36m available in addition to the €35m it had already provided the company – if this state aid is approved by the European Commission. The banks would agree to relax their loan conditions, creating "breathing room in the financing", said the waste treatment company.

The financing deal was announced along with the release of AEB's figures for both 2018 and 2019, which as expected had been "two disappointing years", according to the company. AEB posted a net loss €82m for 2019, due in large part to the costs it incurred last summer when it was forced to shut down a large part of its waste to energy (wte) plant for several months due to safety issues. This shutdown took around 70 per cent of the waste incineration plant’s total capacity of 1.4 million tonnes a year out of commission for several months, causing problems on the waste management market in the Netherlands and beyond. In that time revenues fell, but the company also ran up "diversion costs" securing treatment for the volumes it was contractually obligated to handle.

In the current calendar year, AEB expects to generate a small profit. However, despite positive first-half performance, some uncertainty had crept into the projections as commercial volumes declined sharply with the Covid-19 shutdowns. "Take Schiphol, for example, from there almost nothing was delivered for months. Less supply means less turnover – we will see that corona effect in the figures for 2020," said CEO Paul Dirix.

The full article will appear in the next print edition of EUWID Recycling & Waste Management, out next week.

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