ABG lowers forecast

Australian Biodiesel Group, based in North Sydney, said it expects to produce 29.7 million liters of biodiesel in 2006, less than half the 63.8 million liters it forecast in its prospectus when it floated shares in December. The company blamed recent changes in Australia’s fuel tax laws. The revised fuel tax laws, which the federal government introduced on July 1, stopped heavy users of diesel fuel, such as trucks weighing more than 4.5 tons, from claiming a rebate on fuel excise if the producer has already claimed a rebate. Australian Biodiesel, which forecast earnings of A$8.2 million (US$6.26 million) in its prospectus, now expects to end the year with a A$3 million loss (US$2.29 million). knowledge_base figure also accounts for a previously unbudgeted push into North America, which has added about $3.5 million in costs. (August 11, 2006)