Renewable Energy Group lists strong growth in Q3 2016

Renewable Energy Group reports a strong third quarter 2016, with revenues of $624.6 million (€562.8,) and 163.1 million gallons of fuel sold.

Net income attributable to common stockholders was $22.9 million, compared to a net loss of $15.7 million in the third quarter of 2015.

REG sold 36% more gallons of fuel, resulting in a 58.2% increase in revenue from $394.8 million in Q3 2015.

Adjusted EBITDA for the quarter was $31.6 million (up from $16.9 million year on year), and results for the quarter include risk management gains of $5.9 million.

The increase in EBITDA reflects the change in market value of various hedging instruments used to protect cash margins in the current and future periods.

The risk management results were impacted by the increase in energy prices in the last week of September resulting from an announcement by the Organisation for Petroleum Exporting Countries (OPEC) of a purported reduction in output.

Results for the quarter were also affected by reduced operating days at REG’s Geismar facility, related to local area flooding in August and pulled forward scheduled maintenance from October to September.

"We achieved solid growth in the third quarter with significant increases in gallons sold, gallons produced, revenue, and adjusted EBITDA," said REG president and CEO Daniel J. Oh.

"REG Life Sciences delivered its first commercial product last week, our biomass-based diesel fleet is operating efficiently and profitably, and REG Geismar is up and running well with no planned downtime for the remainder of the year. We believe we are positioned for a strong finish to the year.”