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Sep 30, 2021
Origin Materials Q3 2021 Earnings Report
Increased contracted offtake agreements and capacity reservations to $4.2 billion, completed installation of key production modules at Origin 1, and reaffirmed Origin 1 and 2 capital budget, production timeline and financing.
Key Takeaways
Origin Materials reported strong customer demand and progress on its mission to enable the world’s transition to sustainable materials, completing the installation of the key production modules at Origin 1 six months ahead of schedule and increasing signed offtake agreements and capacity reservations to $4.2 billion.
Completed the installation of the key production modules at Origin 1 six months ahead of the plan.
Increased signed offtake agreements and capacity reservations to $4.2 billion from $3.5 billion in August.
Reaffirmed the Origin 1 capital budget and schedule.
Origin 1 remains on track for completion by the end of 2022.
Forward Guidance
The Company is maintaining previous guidance for Adjusted EBITDA loss but is updating its capital spending outlook.
Positive Outlook
- Adjusted EBITDA loss of up to $25 million, consistent with prior outlook
- Origin 1 remains on track for completion by the end of 2022
- Origin 2 remains on track for completion by mid-2025
- Capital projects for Origin 1 and Origin 2 can be fully funded from its existing cash on hand and previously indicated traditional project financing sources.
- Origin expects piping fabrication to begin by the end of Q1 2022, three months ahead of its prior target of end of Q2 2022.
Challenges Ahead
- Unforeseen events, including changes in global economic conditions.
- The effects of competition on Origin Materials’ business.
- Disruptions and other impacts to Origin Materials’ business as a result of the COVID-19 pandemic and other global health or economic crises
Historical Earnings Impact
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Avg. Return Before/After Earnings
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