Gevo Inc. released second quarter financial results on Aug. 8, reporting a 28.9 percent increase in product sales when compared to the same period of last year, and discussing the company’s future plans.
“During the quarter we made very good progress in restructuring our balance sheet and on the business development front by securing our first commercial off-take agreement for our renewable alcohol-to-jet fuel,” said Patrick Gruber, CEO of Gevo. “We continue to make progress with our plan to improve our profitability through low-carbon ethanol, which we expect to reduce our net cash burn over time, and we continue to work to secure solid offtake agreements to support the buildout of our plant at Luverne for isobutanol, jet fuel and isooctane. As a company, we believe our strengthened balance sheet should enable us to execute our plans.”
During an investor call, Gruber discussed the company’s plans to become profitable. He said that improving the Luverne, Minnesota, plant site will set the stage for low-carbon isobutanol, low-carbon jet fuel and low-carbon isooctane production. Along the way, he said the company intends to produce low-carbon ethanol. Gruber said the company expects to announce more detailed plans to improve plant economics soon, once timelines for equipment and other factors are pinned down.
Gevo reported the sale of its products increased by 28.9 percent during the second quarter, when compared to the same period of last year. The increase is primarily attributed to the increased production of ethanol and distillers grains.
Revenues for the second quarter reached $9.4 million, up from $7.5 million during the same period of last year. Gross loss was $1.3 million for the quarter, compared to a $2.2 million gross loss for the same quarter of last year. Loss from operations was $4.4 million, compared to a $6.2 million loss from operations during the second quarter of 2017. Non-CAPP cash EBITDA loss was $2.6 million, compared to a $4.4 million non-CAAP cash EBITDA loss during the same period of last year. Net loss for the quarter was $11.5 million, compared with a net loss of $10.2 million during the second quarter of 2017.
Source: Biomass Magazine, 2018-08-09.
Author: Erin Voegele