Jun 30, 2023

Opal Fuels Q2 2023 Earnings Report

Opal Fuels' financial performance improved significantly due to higher RIN prices and better Fuel Station Services segment margins, offset by lower Renewable Power performance and increased corporate costs.

Key Takeaways

Opal Fuels reported a 3% increase in revenue to $55.0 million for Q2 2023. Net income was $114.1 million, a significant improvement from the previous year's net loss. Adjusted EBITDA rose by 92% to $21.4 million, driven by improved performance in RNG Fuels and Fuel Station Services.

Revenues increased by 3% to $55.0 million, driven by higher RIN prices and improved performance in the Fuel Station Services segment.

Net income increased to $114.1 million, influenced by a one-time gain from the deconsolidation of the Emerald and Sapphire RNG projects.

Adjusted EBITDA increased 92% to $21.4 million, driven by improved performance in RNG Fuels and Fuel Station Services segments.

The company expects full-year 2023 Adjusted EBITDA to be within the $85.0 to $95.0 million range, assuming current RIN pricing levels.

Total Revenue
$55M
0
EPS
-$0.12
Previous year: $0.08
-250.0%
RNG Produced
0.6
Previous year: 0.5
+20.0%
Total volume delivered
35.5
Previous year: 26.9
+32.0%
Gross Profit
$55M
Cash and Equivalents
$21.6M
Free Cash Flow
-$29.6M
Total Assets
$672M

Opal Fuels

Opal Fuels

Opal Fuels Revenue by Segment

Forward Guidance

Opal Fuels expects its full year 2023 Adjusted EBITDA guidance to be within the prior $85.0 to $95.0 million range assuming current RIN pricing levels. Production is anticipated to be at or modestly below the low end of prior guidance given the delays at Emerald and Prince William.

Challenges Ahead

  • Production will be at or modestly below the low end of prior guidance given the delays at Emerald and Prince William.

Revenue & Expenses

Visualization of income flow from segment revenue to net income