Gevo reports Q4 loss of $0.33 per share

Gevo has announced its financial results for the three months ended December 31, 2016.

The US renewable chemicals and advanced biofuels company announced a net loss per share of ($0.33) for the quarter.

The company announced that gross loss was $2.3 million (€2.14m) for the three months ended December 31, 2016, versus $1.7 million in the same quarter in 2015.

Revenues for the fourth quarter of 2016 were $5.8 million compared with $7.3 million in the same period in 2015.

During the fourth quarter of 2016, revenues derived at the Luverne plant were $5.3 million, a decrease of approximately $1.2 million from the same period in 2015. This was primarily a result of lower ethanol production and distiller grain prices in the fourth quarter of 2016 versus the same period in 2015

Gevo announced highlights for the quarter. It said that the company has produced approximately 190,000 gallons of isobutanol during the quarter at Gevo's isobutanol production facility located in Luverne, Minnesota.

On February 13, 2017, Gevo signed a letter of intent with HCS Holding to supply isooctane under an offtake agreement. HCS is a manufacturer of specialty products and solutions in the hydrocarbons sector, operating under such brands as Haltermann Carless.

In the first phase of the contemplated binding offtake agreement, HCS is expected to purchase isooctane produced at Gevo's demonstration hydrocarbons plant located in Silsbee, Texas, commencing in 2017. During the first phase, expected revenue would be in the range of $2-3 million per year and would continue until completion of Gevo's future, large-scale commercial hydrocarbon plant. 

In the second phase, HCS is expected to purchase approximately 300,000 to 400,000 gallons of isooctane per year under the contemplated binding offtake agreement for a period of five years. Gevo expects to supply this isooctane from its first large-scale commercial hydrocarbons facility, which is likely to be built at the Agri-Energy Facility.

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