Renewable Energy Group reports fourth-quarter loss

US biofuels producer Renewable Energy Group has reported a fourth-quarter loss of $95.6 million (€87m), after reporting a profit in the same period a year earlier.

Net income was $69.4 million for the fourth quarter of 2014, the company reported.

Nevertheless, the biodiesel producer posted revenue of $387.8 million for the fourth quarter of 2015.

For the year, the company reported a loss of $151.4 million, or $3.44 per share, swinging to a loss in the period. Revenue was reported as $1.39 billion.

For the full year 2015, REG sold 30% more total gallons, revenue increased by 9%, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 53%, compared to 2014.

In a statement, REG said that the EBITDA decrease was "primarily attributable to the challenging market conditions in the energy and commodity sectors in 2015, compounded by the Geismar biorefinery being offline".

"Despite challenging conditions in markets in which we operate, 2015 was another year of growth and resiliency for REG," said Daniel J. Oh, president and CEO.

He added: "We generated positive adjusted EBITDA, further grew our records of gallons produced and sold, continued to expand our nameplate production capacity and increased our ownership share in Petrotec [oil and gas equipment supplier]."

Outlook

Oh said he was encouraged about the firm's outlook for 2016 and beyond.

He explained: "The regulatory clarity and growth trajectory EPA provided last year with a multi-year RVO will grow biomass-based diesel beyond two billion gallons by next year, and effectively already has when you consider carryover Renewable Identification Numbers (RINs).

"And with the biodiesel tax credit being in place for this year, contributions from the restart of our Geismar renewable hydrocarbon diesel biorefinery and a full-year of production at Grays Harbor, we are well-positioned for future growth."