RJ affirms Rentech rating, projects 2013 opening for Rialto

In California, Raymond James analyst Pavel Molchanov affirmed Rentech’s Market Perform rating after Rentech reported a fiscal 4Q10 net loss of $0.04 per share, below consensus of $(0.02) and our EPS estimate of $0.01.  “Revenue of $34.5 million was 37% lower than our estimate of $54.6 million, while gross margin of 23.6% was also weaker than expected,” Molchanov wrote.

In a Rialto project update, Molchanov added, “Slowly but surely, Rentech continues to make progress toward synfuel commercialization.  The company plans to complete FEED for the Rialto, California biomass-to-liquids project in the spring of 2011, with construction expected to begin in the summer.  Start-up is slated for the end of 2012 or early 2013, but we believe 2013 is most likely.  Rentech is still a candidate to receive a DOE loan guarantee for the Rialto project, but visibility is limited as the application process is highly competitive and painfully slow. If awarded the loan guarantee, it would cover approximately 80% of the total project cost, which is estimated at $430 million.”

Download the full Rentech  report, here.