Aemetis swings to Q1 2017 loss as India biodiesel dip offsets US ethanol gains
In California, Aemetis reported Q1 2017 revenues of $31.6M compared to $33.3M for Q1 2016 as increases in ethanol production and average selling prices were offset by lower volumes of biodiesel sales. Gross loss for the first quarter of 2017 was $0.6 million, compared to gross profit of $2.1 million during the first quarter of 2016. Net loss was $8.5M for the quarter compared to a net loss of $5.1 million for Q1 2016. Adjusted EBITDA loss was $2.4M, compared to $250K for Q1 2016. Cash at the end of the first quarter was $231K compared to $1,486K at the close of 2016. During the first quarter, gross margins declined due to higher feedstock costs, principally from rail dislocation associated with wet winter weather in California and lower distillers grains prices. Operating loss was $4.0M compared to $1.0M for Q1 2016.
“During the first quarter, ethanol revenues increased by 12% on higher ethanol volume and prices compared to the first quarter of 2016, but gross margins were negatively impacted by an increase in feedstock costs due to an unusually wet winter in California and the resulting higher rail costs,” stated Eric McAfee, Chairman and CEO of Aemetis. “During the second quarter, rail costs have returned to more normal levels and ethanol margins have improved as corn prices remain moderated. Our business in India has entered a growth phase by recently winning a biodiesel supply contract with domestic Oil Marketing Companies in India, and we are finalizing an international biodiesel supply contract with a major oil company. These new customers are in addition to our existing bulk and fleet customers in India.”
Category: Fuels
