On August 1, 2024, Aemetis Inc (AMTX, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. Aemetis Inc is a renewable fuel and biochemicals company focused on producing renewable fuels and chemicals through advanced biorefineries. The company operates a 65 million gallon per year ethanol production facility in Keyes, California, and has significant operations in North America and India.
Performance Overview
Aemetis Inc reported revenues of $66.6 million for Q2 2024, reflecting a 48% increase over the $45.1 million reported in Q2 2023. Despite this growth, the revenue fell short of the analyst estimate of $73.70 million. The company's net loss widened to $29.2 million from $25.3 million in the same period last year, translating to a loss per share of $0.66, compared to the analyst estimate of -$0.48.
Segment Performance
The revenue growth was driven by strong execution across all three operating segments:
- California Ethanol Business: Generated $40.1 million in revenues.
- India Biodiesel Business: Contributed $28.8 million in revenues.
- Dairy Renewable Natural Gas (RNG) Business: Added $1.6 million in revenues.
However, the company faced operational challenges, including increased selling, general, and administrative expenses, which rose to $11.8 million from $9.7 million in Q2 2023. This increase was primarily due to a $3.6 million loss on asset disposals.
Financial Achievements and Challenges
Aemetis Inc's financial achievements include the commissioning of a new Solar Microgrid with battery storage at its California Ethanol business, which is expected to reduce electric utility costs and optimize storage. Additionally, the company received a $10.5 million allocation of IRA tax credits to support the installation of a Mechanical Vapor Recompression system, aimed at reducing natural gas usage by approximately 80%.
"The ongoing construction and operation of dairy digesters with the current capacity to produce more than 300,000 MMBtu of renewable natural gas annually by the Dairy RNG business marks an important cash flow milestone for Aemetis," stated Todd Waltz, Chief Financial Officer of Aemetis.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $66.6 million | $45.1 million |
| Gross Profit (Loss) | $(1.8) million | $2.0 million |
| Operating Loss | $(13.6) million | $(7.8) million |
| Net Loss | $(29.2) million | $(25.3) million |
Balance Sheet and Cash Flow
As of June 30, 2024, Aemetis Inc reported cash and cash equivalents of $234 thousand, down from $2.7 million at the end of 2023. The company invested $5.4 million in capital projects during the quarter, focusing on reducing the carbon intensity of its ethanol production and constructing dairy digesters.
Analysis and Outlook
While Aemetis Inc demonstrated significant revenue growth, the company continues to face operational and financial challenges, including increased expenses and a widening net loss. The company's strategic investments in renewable energy projects and efficiency improvements are expected to enhance future cash flows and reduce carbon intensity, positioning Aemetis Inc for long-term growth in the renewable fuels industry.
For more detailed insights, investors are encouraged to review the full 8-K filing and join the earnings review call.
Explore the complete 8-K earnings release (here) from Aemetis Inc for further details.
