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Mar 31, 2022
Origin Materials Q1 2022 Earnings Report
Increased contracted offtake agreements and capacity reservations, origin 1 construction timeline on track with budget increase, and origin 2 unchanged.
Key Takeaways
Origin Materials reported strong customer demand and increased contracted offtake agreements and capacity reservations to $7.4 billion. The Origin 1 construction timeline is on track, but the capital budget increased by $15 to $20 million. The Origin 2 construction timeline, budget, and financing are unchanged. The company maintains its 2022 Adjusted EBITDA forecast loss of $36 million and updates its capital expenditure outlook to up to $175 million.
Total signed offtake agreements and capacity reservations increased to $7.4 billion, up from $5.6 billion in February 2022.
New partnerships were established with LVMH Moët Hennessy Louis Vuitton and Mitsubishi Chemical Holdings Group.
Origin 1 construction is on track for mechanical completion by the end of 2022, but the capital budget is expected to increase by $15 million to $20 million.
The previously disclosed Origin 2 capital budget and construction timeline are unchanged.
Forward Guidance
The Company is maintaining Adjusted EBITDA and updating capital spending for fiscal year 2022 resulting from an increase in the capital budget of Origin 1.
Positive Outlook
- Adjusted EBITDA loss of up to $36 million
Challenges Ahead
- Capital spending is now expected to be up to $175 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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