Aemetis reports Q2 results, plans future improvements

By Erin Voegele | August 19, 2014

Aemetis Inc. has released second quarter financial results, reporting revenue of $57.2 million, a 21 percent increase over the same quarter of 2013. The company also outlined future improvement plans in a recent business update conference call.

Gross profit for the second quarter was $57.2 million, a 21 percent increase from the same period of last year. According to the company, the increase reflects the period in April 2013 when the Keyes, California, plant was idle. It operated the full quarter this year.

Operating income was $7.8 million in the second quarter, compared to an operating loss of $400,000 during the same period of 2013. Net income was $2.7 million, or 13 cents per share, compared to loss of $9.6 million reported for the second quarter of last year.

Aemetis sold approximately 14.9 million gallons of ethanol during the quarter, up from 9.8 million gallons during the same period of last year. During the first half of the year, the company sold 31 million gallons of ethanol, up from 12.1 million gallons during the same period of 2013. The average sales price per gallon was $2.74 during the third quarter of the year, and $2.83 during the first half of the year. During the same periods of last year, the average sales price was $2.88 and $2.80 per gallon, respectively.

Aemetis sold approximately 101,900 tons of wet distillers grains (WDG) during the second quarter at an average price of $115 per ton, compared to 73,000 tons at an average of $96 per ton during the same quarter of last year. During the first six months of the year, the company sold 214,400 tons of WDG at an average price of $106 per ton, compared to 90,200 tons at $99 per ton during the first half of 2103.

During the investor call, Eric McAfee, chairman and CEO of Aemetis, noted the company listed on Nasdaq in June and filed a $100 million S-3 registration that covers a wide range of potential debt or equity offerings in July. “This filing is administrative housekeeping,” McAfee said. “In order for Aemetis to minimize dilution to shareholders, we need to avoid issuing restricted shares or waiting several months for SEC approval of small transactions that include warrants or shares.” He also noted the filing strengthens the company’s ability to take advantage of opportunities to maximize the value of its shares by eliminating barriers to executing on its operational plans.

Regarding the future of the ethanol industry, McAfee said now is the time to adopt technologies to transform ethanol plants into lower-carbon advanced biofuel facilities that use ethanol, distillers grain, corn oil and CO2 to produce significantly higher margin products. During the next few quarters, he said Aemetis plans to announce the acquisition of technologies that upgrade the projects made by its ethanol and biodiesel plants, and decrease the energy and feedstock costs. “The value of any one of these product upgrades can exceed $30 million of increased cash flow per year per production facility, and when the technologies are combined together the increase in cash flow lowers risk, diversifies revenues into new markets and significantly increases the value of each facility,” McAfee said.