REG reports solid Q1 thanks to selling nearly 25% more biodiesel

In Iowa, earlier this month, Renewable Energy Group Inc. reported its financial results for the first quarter of 2017 ended March 31. Revenues for the quarter were $418.9 million on 122.1 million gallons of fuel sold. Compared to the first quarter of 2016, REG sold 24.6 percent more gallons of fuel resulting in an increase in revenue of 40.6 percent. 

The majority of revenue growth was due to an increase in renewable hydrocarbon diesel gallons sold, a full quarter of operations at the Madison, Wisconsin, facility, and the impact of distillation upgrades completed in 2016 at the Danville, Illinois, biorefinery. Danville is now able to produce REG-9000 Distilled, a high-quality biodiesel with better cold weather performance characteristics.

These factors offset the impact of the lapsed federal Biodiesel Mixture Excise Tax Credit (BTC) on Jan. 1, 2017. Net loss attributable to common stockholders was $15.9 million, compared to a net loss of $6.9 million in the first quarter of 2016. Adjusted EBITDA for the quarter was $0.6 million compared to adjusted EBITDA in the first quarter of 2016 of $2.2 million.