Gevo says 30% cut in burn rate in focus for 2018 as 2017 $18M loss announced
In Colorado, Gevo announced a cash EBITDA loss of $16.2 million for 2017, while noting that the cash burn for 2018 will be approximately 30% lower than in 2017, the company projects. During 2017 Gevo produced 15.6 million gallons of ethanol, 47 thousand tons of animal feed, and 1,050 tons of corn oil resulting in a revenue of $26.3 million. Consistent with Gevo’s market development efforts, during 2017, Gevo produced approximately 206,000 gallons of isobutanol at its production facility in Luverne, Minnesota. During 2017, Gevo sold the equivalent of approximately 49,368 gallons of isobutanol, either directly as isobutanol or as renewable hydrocarbons (jet fuel, isooctane and isooctene) resulting in revenue of $1.1 million.
During 2017, through a combination of refinancing, pay-down, and exchange transactions, Gevo was able to eliminate and restructure its debt so that there was no outstanding debt due until at least 2020. At December 31, 2017, Gevo had $16.7 million of senior secured debt that is set to mature in 2020.
In 2018, Gevo intends to continue to develop the markets for its isobutanol, jet fuel, isooctane, and other products made from isobutanol and ethanol. Ultimately, Gevo’s primary target is to enter into binding supply contracts for isobutanol and related hydrocarbon products that represent the majority of the production volumes to be produced at the expanded Luverne Facility that Gevo plans to construct.
Category: Fuels
