REG announces yearly results, with plans to sell life sciences unit

The Renewable Energy Group (REG) revealed its fourth quarter and full 2018 results, which also included the announcement that the REG plans to sell its Life Sciences division.

“REG generated $139 million of Adjusted EBITDA in 2018, an outstanding result reflecting strong operational performance and a favorable margin environment,” said Cynthia Warner, REG president and CEO.

“In addition, we remain confident that Congress will reinstate the BTC for 2018 which we estimate would add approximately $237 million to our 2018 Adjusted EBITDA. We are excited about the growth opportunities that this level of profitability would permit.”

For the full year of 2018, revenues were $2.4 billion (€2.14 billion) for 649.2 million gallons sold. Net income was $292.3 million (€260.76 million), net income from continuing operations was $295.8 million and adjusted EBITDA was $138.9 million (€123.91 million).

In 2018, REG sold 62.5 million more gallons and revenue with an increase of 10.6% compared to 2017.

Concluding, the association also announced that it’s board of directors is pursuing a sale of its Life Sciences division. As a result, the fourth quarter results have been adjusted to exclude the discontinued unit.

REG also recognized a $11.2 million (€9.99 million) impairment charge related to this business unit in the fourth quarter of 2018.