Renewable Energy Group widens net loss in Q1

US advanced biofuels Renewable Energy Group (REG) reported a first-quarter 2017 net loss of $15.9 million (€14.49m), widened from the $6.9 million loss for the first quarter of 2016.

The results for the first quarter ended 31 March, 2017 were published yesterday (4 May, 2017).

Revenues for the quarter were $418.9 million on 122.1 million gallons of fuel sold. Compared to the first quarter of 2016, REG sold 24.6% more gallons of fuel resulting in an increase in revenue of 40.6%. Net loss attributable to common stockholders was $15.9 million, or $0.41 per share on a fully diluted basis. This compares to a net loss of $6.9 million, or $0.16 per share on a fully diluted basis.

The majority of revenue growth was due to an increase in renewable hydrocarbon diesel gallons sold, a full quarter of operations at the Madison, Wisconsin facility, and the impact of distillation upgrades completed in 2016 at the Danville, Illinois biorefinery.

Biodiesel Mixture Excise Tax Credit

Danville is now able to produce REG-9000 Distilled, a high quality biodiesel with better cold weather performance characteristics. These factors offset the impact of the lapsed federal Biodiesel Mixture Excise Tax Credit (BTC) on 1 January, 2017.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter was $0.6 million compared to Adjusted EBITDA in the first quarter of 2016 of $2.2 million. 

"Our operating results for the first quarter of 2017 were in line with expectations given the lapsed BTC and we are well positioned should the BTC or similar incentive be reinstated as it has been in the past. We anticipate seasonally higher demand in the coming months and our biorefinery fleet is currently running at high utilisation levels," said REG President and CEO Daniel J. Oh.

Oh said: "On the regulatory and legislative front, we are actively engaged in supporting Congressional efforts to reinstate and reform the BTC to a domestic producer incentive and the anti-dumping and countervailing duty petition filed with the US Department of Commerce and the International Trade Commission regarding imports from Argentina and Indonesia.  We believe that the enactment of either or both of these initiatives would have positive impact on our financial results.”

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

191 queries in 1.075 seconds.