Aemetis reports Q2 net loss despite increased revenue

US biorefining company Aemetis reported a net loss of $6 million (€5 million) for the three months ending 30 June, 2017, compared to a net loss of $5 million for the same period the previous year.

Revenues were $40.8 million for the second quarter of 2017, compared to $33.1 million for the second quarter of 2016. The increase in revenue was primarily attributable to increased ethanol and distillers grains volumes, as well as increased sales to bulk fuel customers in India, the company said.

Gross margin for the second quarter of 2017 was $1.7 million, compared to gross margin of $1.9 million during the second quarter of 2016. Ethanol and distillers grain price declines contributed to a lower gross margin, offsetting higher volumes, Aemetis reported.

Selling, general and administrative expenses were $3.3 million in the second quarter of 2017, compared to $2.9 million in the second quarter of 2016.

The largest components of the change in selling, general and administrative expense were tax penalties, returned sublease space and workmen’s compensation rate increases related to North America operations and operational support charges related to the increase in revenue at the India operations.

Operating loss was $1.7 million for the second quarter of 2017, compared to an operating loss of $1.1 million for the second quarter of 2016.

“We have recently achieved significant milestones in our ethanol and biodiesel operating segments.  Accomplishments during the second quarter include implementation of our strategy to grow the India biodiesel business through the BP Singapore supply agreement, sales to bulk fuel customers, newly approved sales to retail customers and winning supply agreements with the India oil marketing companies," said Eric McAfee, chairman and CEO of Aemetis.  

McAfee added: "During the third quarter, we also started production of cellulosic ethanol from waste orchard wood and nutshells at our newly constructed integrated demonstration unit at the InEnTec Technology Center in Richland, Washington. Cellulosic ethanol can reduce greenhouse gas emissions up to 80% compared to gasoline.  In India, we completed the construction of the first phase of our commercial pre-treatment unit and began production of biodiesel using our patent-pending enzymatic technology."

This story was written by Liz Gyekye, editor of Biofuels International.