Q2 2024 Vertex Energy Inc Earnings Call Transcript
Key Points
- Vertex Energy Inc (VTNRQ) successfully reduced absolute operating expenses by 6% quarter over quarter and 12% year over year, demonstrating effective cost management.
- The company secured additional loans totaling $35 million to address near-term liquidity constraints, enhancing financial flexibility.
- Vertex Energy Inc (VTNRQ) maintained a commendable safety track record with zero process safety events for over two years at the Mobile site.
- The company achieved a high capacity utilization rate of 90% at the Mobile site, with strong operational performance and throughput volumes of approximately 68,000 barrels per day.
- Vertex Energy Inc (VTNRQ) strategically pivoted from renewable diesel to conventional fuels, aiming to capture available margins in a more established market.
- Vertex Energy Inc (VTNRQ) reported a net loss of $53.8 million for the second quarter of 2024, compared to a net loss of $81.4 million in the same quarter of 2023.
- The company's total adjusted EBITDA decreased to a loss of $22.4 million in the second quarter, driven by lower pricing and deteriorating crack spreads.
- The gross margin per barrel for conventional fuels decreased significantly to $5.67 from $12.63 in the first quarter, reflecting challenging market conditions.
- Vertex Energy Inc (VTNRQ) experienced its first recordable injury in over two years at the Mobile site, highlighting the need for continuous safety improvements.
- The planned turnaround and hydrocracker conversion in the third quarter are expected to reduce overall throughput, impacting short-term production volumes.
Good morning. I would like to welcome everyone to Vertex Energy Second Quarter 2024 conference call. I will now turn the call over to Chris Delange, IR Coordinator.
Thank you, operator. Good morning, everyone, and welcome to Vertex Energy's Second Quarter 2024 conference call. On the call today are Chairman and CEO, Ben Cowart; Chief Financial Officer, Chris Carlson,; Interim Chief Operating Officer and Chief Commercial Officer, Doug Haugh, and Chief Strategy Officer, Alvaro Ruiz.
I want to remind you that management's commentary on today's conference call may include forward-looking statements, which by their nature are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially for a discussion of some of the risk factors that could cause actual results to differ, please refer to the Risk Factors section of Vertex Energy's latest annual and quarterly filings with the SEC.
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