Gevo reports sharp increase in revenue; eases guidance on first commercial ramp-up timeline

In Colorado, Gevo reported 2011 revenues of $64.6 million, compared to $16.4 million in 2010, and net losses for the year of $48.2 million compared to $40.1 million last year. Revenues for Q4 grew to $17.2 million, up from $14.1M in Q4 2010, with a net loss of $14.2M for the quarter compared to $6.3M in Q4 2010. The company reported cash and cash equivalents on hand of $94.2 million as of December 31, 2011.

“We are on the cusp of commercializing renewable isobutanol,” said CEO Pat Gruber, adding that “The retrofit of our Luverne plant continues on track to start commercial scale production of renewable isobutanol in the first half of this year.”

Gruber highlighted retrofit design work underway at Redfield Energy in South Dakota, the company’s speciality chemicals off-take agreement with Sasol Chemical Industries, a supply and logistics agreements with Mansfield Oil for specialty fuel blendstocks, an agreement with The Coca-Cola Company to develop bio-PET, and an 11,000 gallon  ‘alcohol-to-jet’ (ATJ) bio-jet fuel with the U.S. Air Force. Gruber also highlighted a number of patents issued to the company in 2011.

Cowen & Co analysts Rob Stone and James Medvedeff wrote: “We believe this was a very respectable performance for an early stage company on the verge of commercialization. We like the capital-light value-enhancing concept and the careful approach, and we believe there is ample upstream opportunity as well as substantial potential in the six targeted verticals. However, modestly lower N-T assumptions keep us on the sidelines for now.” On ramp-up of production in Luverne, MN, they added: “Management re-set expectations to accommodate potential ramp miscues, and now expects to exit the year at a 12MGPY rate (2/3 of nameplate).”