4Q23 Results: Primed and Ready for 2024
GEVO sold 90,666 MMBtu of RNG in 4Q23, up from 81,271 MMBtu in the previous quarter, which translates to 91% of capacity on an annualized basis, while generating standalone cash EBITDA of $1.3 million, down from $1.7 million in 3Q23. The RNG division is expected to achieve $12-16 million in cash EBITDA once the company receives the CARB CI score in 2024. This is further expected to increase to $30-38 million if California Low Carbon Fuel Standard (LCFS) prices recover to $200 per metric ton. Gevo has made significant progress on its Net-Zero 1 plant project and is actively negotiating a loan guarantee with the US Department of Energy. Gevo remains confident in meeting its estimated timeline of up to 12 months for completing the process based on positive progress made this quarter. The company reported revenue of $4.4 million, compared with $0.5 million in the same period last year, driven by sales of RNG and environmental attributes from the RNG project. Cost of production remained flat for the quarter at $3.2 million, compared with the same period last year, driven by higher production costs of RNG offset by the idling of the Luverne facility. Operating loss decreased to $21.3 million, down from $26.1 million last year, driven by a higher impairment loss last year and improved efficiencies. The company’s net loss was $18.5 million or -$0.08 per share, compared with a loss of $25.4 million or -$0.10 in 4Q22. Gevo has cash reserves of $375.6 million, including restricted cash of $77.2 million with debt of $68.0 million. The company is expected to fund its Net-Zero 1 project through existing cash on the books.Gevo is a low-carbon fuel company focused on the development and commercialization of renewable alternatives to petroleum-based products. In addition to serving the low-carbon fuel markets, the company can also serve markets for the production of chemical intermediate products for solvents, plastics, and building block chemicals using its technologies. The company's operating segments include: Gevo segment, which is responsible for research and development activities related to the future production of isobutanol; and Gevo Development/Agri-Energy segment, which is responsible for the operation of its production facility in Luverne, MN and the production of ethanol, isobutanol and related products.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.