Gevo shares slide as biofuels maker reports 2Q loss on spiraling costs
Despite reporting a loss, biofuel maker Gevo Inc (NASDAQ:GEVO) beat Wall Street’s second-quarter earnings estimate and its revenue forecast too on the back of sales of ethanol and distiller grains.
The Englewood, Colorado-based company on an adjusted basis swung to a loss of US$3.31 on revenue of US$9.4mln, which was higher than the loss of US$5.80 on revenue of US$5.9mln, which Wall Street analysts had penciled in.
The results left investors disappointed and Gevo shares shed 8.3% in after-hours trade to US$3.86.
CEO Patrick Gruber said the company made progress in the quarter by restructuring its balance sheet and selling more low-carbon ethanol as well as renewable alcohol for jet fuel. “As a company, we believe our strengthened balance sheet should enable us to execute our plans,” Gruber said.
During the quarter, Gevo announced that it had entered into its first agreement to supply its renewable alcohol-to-jet fuel to Avfuel Corporation.
Last June, Gevo also saw its share price rocket after the Environmental Protection Agency announced the approval of the ethanol-free gasoline additive isobutanol at a 16% blend level in gasoline for on-road use in automobiles.
Read: Gevo shares still accelerating after EPA green lights increased mix of gasoline additive isobutanol
In the quarter, it also received a letter from the Nasdaq that it had regained compliance with the stock exchange in regards to its $1 minimum bid price and implemented a 1-for-20 reverse stock split.
Gevo is a renewable chemicals and biofuels company that produces isobutanol, ethanol and animal feed at its fermentation plant in Luverne, Minnesota.
Revenues from the Luverne facility related to ethanol sales and related products swung to US$8.8mln in the quarter, an increase of about $2mln from the year-ago period.
Gevo also operates a biorefinery in Silsbee, Texas in collaboration with South Hampton Resources that produces renewable jet fuel, octane and ingredients for plastics like polyester.
Contact Ellen Kelleher at [email protected]
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/202529/gevo-shares-slide-as-biofuels-maker-reports-2q-loss-on-spiraling-costs-202529.html
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