Aemetis Q3 2017 net loss widens

US advanced biofuels and biochemicals company Aemetis said its net loss widened to $8.2 million (€6.4 million) for the third quarter of 2017 from $4.1 million the previous year.

The company published its financial results for 30 September, 2017.

During the third quarter of 2017, year over year revenues for North America increased to $36 million from $33.9 million, while year over year revenues for India were lower due to the introduction of India's Goods and Service Tax as well as a delay in the ramp up of India biodiesel deliveries to BP under a three-year supply agreement signed in the second quarter of 2017.

Gross margin for the third quarter of 2017 was $2 million, compared to gross margin of $3.7 million during the third quarter of 2016.

Brazilian imports

Weaker gross profit during the third quarter of 2017 compared to the same period of 2016 was primarily due to Brazilian imports of ethanol to California, which placed pricing pressure on West Coast ethanol, combined with sluggish international demand for dry distillers grains, which placed pricing pressure on locally sold wet distillers grain.

Overall revenues decreased slightly during the third quarter of 2017 compared with the third quarter of 2016.

"During the third quarter of 2017, North America revenues grew 6.2% year over year," said Eric McAfee, chairman and CEO of Aemetis.

He added: "The production equipment installation and commissioning for the first phase of the patent-pending enzymatic biodiesel technology has been completed at our Kakinada plant and commercial yields have been achieved using low cost, low carbon feedstock.

“This production upgrade required more than two years of process development in cooperation with enzyme supplier Novozymes, resulting in a sustainable cost advantage in both domestic and export markets that in the fourth quarter of 2017 is expected to result in shipment increases to both BP and our existing bulk customers in India."