Aemetis Inc (AMTX) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amidst Challenges

In This Article:

  • Revenue: Increased to $81.4 million in Q3 2024 from $68.7 million in Q3 2023.

  • Gross Profit: $3.9 million in Q3 2024, up from $492,000 in Q3 2023.

  • Selling, General and Administrative Expenses: $7.8 million in Q3 2024, down from $9 million in Q3 2023.

  • Operating Loss: Improved to $3.9 million in Q3 2024 from $8.5 million in Q3 2023.

  • Interest Expense: Increased to $11.7 million in Q3 2024 from $10.2 million in Q3 2023.

  • Net Loss: $17.9 million in Q3 2024 compared to net income of $30.7 million in Q3 2023.

  • Cash: $296,000 at the end of Q3 2024, down from $2.7 million at the end of Q4 2023.

  • India Biodiesel Revenue: $32.2 million in Q3 2024.

  • Dairy Renewable Natural Gas Revenue: $4.2 million in Q3 2024.

  • Keyes Plant Revenue: $45 million from 15.5 million gallons of ethanol in Q3 2024.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Revenue increased to $81.4 million in Q3 2024 from $68.7 million in Q3 2023, indicating strong growth.

  • Gross profit improved significantly to $3.9 million in Q3 2024 from $492,000 in Q3 2023.

  • The company is expanding its renewable natural gas production, with plans to increase to 1 million MMBTUs by the end of 2025.

  • Aemetis Inc (NASDAQ:AMTX) is well-positioned to benefit from the updated California Low Carbon Fuel Standard, which supports low carbon fuels.

  • The India biodiesel business recognized $32.2 million in revenue, showing strong performance in international markets.

Negative Points

  • Net loss was $17.9 million for Q3 2024, compared to a net income of $30.7 million in Q3 2023, primarily due to the absence of investment tax credits.

  • Cash at the end of Q3 2024 was only $296,000, a significant decrease from $2.7 million at the end of Q4 2023.

  • Interest expense increased to $11.7 million in Q3 2024 from $10.2 million in Q3 2023, impacting profitability.

  • The realization of the 45Z production tax credit is uncertain, pending IRS guidance, which could delay revenue generation.

  • The timing of the India biodiesel contract may lead to weaker revenue in Q4 2024 due to government processes.

Q & A Highlights

Q: Do you think the recent LCFS update will move prices to a range where projects generate a good return? A: Yes, the updated LCFS is expected to fund projects effectively. Analysts predict that by 2027, the credit bank will be zero, leading to a maximum price of approximately $220. The strong commitment from California suggests that major oil companies will need to secure credits sooner to avoid higher future prices.

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