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Jun 30, 2022
Aemetis Q2 2022 Earnings Report
Reported a 20% increase in revenue compared to Q2 2021, driven by higher ethanol prices, while facing increased costs for corn and investments in carbon reduction projects.
Key Takeaways
Aemetis reported a 20% increase in revenue for Q2 2022 compared to Q2 2021, reaching $65.9 million. The increase was driven by higher ethanol prices, but the company faced increased costs for delivered corn. The company reported a net loss of $209,000, improved from a net loss of $10.6 million in Q2 2021. Capital investments in carbon reduction projects totaled $12.1 million for the quarter.
Revenue increased by 20% to $65.9 million compared to Q2 2021, driven by higher ethanol prices.
Gross loss was $214,000, compared to a $3.6 million gross profit in Q2 2021, primarily due to increased corn prices.
Operating loss was $7.7 million, compared to an operating loss of $2.1 million in Q2 2021.
Net loss improved to $209,000 compared to a net loss of $10.6 million in Q2 2021, including a $14.2 million grant from the USDA.
Aemetis
Aemetis
Forward Guidance
Aemetis is focused on executing its Five-Year Plan, which includes projects that produce negative carbon intensity products and grow value for shareholders.
Positive Outlook
- Launched operational management of the Riverbank Industrial Complex for SAF and renewable diesel plant.
- Purchased 24 acres for carbon capture and sequestration injection well at the Riverbank site.
- Signed $3.5 billion in off-take agreements for SAF with major airlines.
- Signed $3.2 billion in off-take contracts for renewable diesel with a leading travel stop chain.
- Closed two low-interest rate credit facilities for up to $100 million for carbon reduction projects.
Challenges Ahead
- Poor railroad performance impacted the delivered cost and supply of corn into California.
- Gross loss reported for the quarter due to increased corn prices.
- Operating loss reported for the quarter.
- Interest expense increased compared to the same quarter last year.
- Selling, general, and administrative expenses increased due to investments in ultra-low carbon initiatives.