Aemetis criticizes RFS rulemaking delays during investor call

By Erin Voegele | August 07, 2015

Aemetis Inc. has released second quarter financial results, reporting revenues of $38.1 million, down from $57.2 million during the same period of 2014. According to Amyris, a decrease in ethanol and wet distillers grains average selling prices resulted in revenue decline.

Gross profit was $2 million, down from $11.4 million during the same quarter of last year. Operating loss was $1.3 million, compared to an operating income of $7.8 million during the second quarter of the prior year. Net loss for the quarter was $6.3 million, compared to a net income of $2.7 million reported for the second quarter of 2014. Adjusted EBITDA was a $200,000 loss, compared to $9.1 million during the same three-months of last year.

“Our U.S. ethanol business delivered sequential improvement in profitability and revenue,” said Eric McAfee, chairman and CEO of Aemetis.  “Our India biodiesel business grew 161 percent sequentially through the development of a sustainable domestic customer base, which was made possible by key government policy changes earlier in the year.  Continuation of this rapid customer acceptance and adoption places us on a strong path to year over year revenue growth.”

During an investor call, McAfee noted the company’s Keyes, California, ethanol plant continues to run with operational excellence and at full capacity. He attributed the drop in average sales price for ethanol to the U.S. EPA’s delays in setting the renewable fuel standard (RFS) mandates.

McAfee criticized the EPA’s proposal to reduce RFS mandates, but noted that in spite of the reduced mandates, the company believes the corn ethanol industry will export excess capacity to different countries, bringing supply and demand back into balance.

The company sold 14.2 million gallons of ethanol during the second quarter, down from 14.9 million gallons during the same period of last year. The average sales price per gallon dropped from $2.74 per gallon during the second quarter of 2014 to $1.78 per gallon during the second quarter of this year. Aemetis sold 93,500 tons of wet distillers grains (WDG) during the second quarter at an average price $82 per ton. During the same period of last year, the company sold 115,000 tons of WDG at an average price of $115 per ton.