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Mar 31, 2023
Opal Fuels Q1 2023 Earnings Report
Opal Fuels' first quarter 2023 results were reported, showing a mix of revenue decrease and strategic progress.
Key Takeaways
Opal Fuels reported a 12% decrease in revenue compared to the same period last year, primarily due to the decision to defer RIN sales. Net loss increased, while Adjusted EBITDA saw a significant increase due to higher RNG production.
Revenues decreased by 12% to $43.0 million compared to the same period last year.
Net loss was $7.3 million, compared to $4.5 million in the same period last year.
Adjusted EBITDA increased by 112% to $8.7 million compared to the same period last year.
Advanced Development Pipeline increased to 9.3 million MMBtu of feedstock biogas from 8.3 million MMBtu at year end.
Opal Fuels
Opal Fuels
Opal Fuels Revenue by Segment
Revenue by Segment
RNG Fuel Revenue
CapyFin.comFuel Station Services Revenue
CapyFin.comRenewable Power Revenue
CapyFin.com Forward Guidance
Opal Fuels is progressing with its strategic priorities, expecting strong growth in 2024 and beyond.
Positive Outlook
- Emerald RNG project remains on track to commence commercial operations in the next few months.
- Prince William RNG project is expected to commence commercial operations in the fourth quarter of 2023.
- Polk County project is anticipated to have nameplate capacity of approximately 1.1 million annual MMBtu, with start of construction expected next month and commencement of operations anticipated in the second half of 2024.
- WM project is anticipated to have nameplate capacity of 600,000 to 700,000 annual MMBtu, with start of construction expected in the second half of 2023.
- On track to place at least 2 million MMBtu of RNG projects into construction in 2023.
Challenges Ahead
- First quarter results reflect the impact of lower environmental credit pricing compared to last year.
- Decision to defer monetizing the majority of RIN inventory impacted first quarter results.
- Sapphire RNG project is now expected to commence commercial operations in the first half of 2024 due to permitting delays.
- Environmental credit market prices are lower relative to last year.
- Net loss for the three months ended March 31, 2023, was $7.3 million compared to $4.5 million in the prior-year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income