Gevo Inc (GEVO) Reports Increased RNG Sales and Reduced Loss from Operations in Q3 2023
Gevo Inc (NASDAQ:GEVO) operating revenue jumps to $4.5 million in Q3 2023, primarily from RNG sales.
Loss from operations decreased by $23.2 million compared to the same period last year.
Company on track with Net-Zero 1 plant development and expansion of RNG project.
Interest and investment income increased significantly due to higher interest rates on cash equivalent investments.
On November 13, 2023, Gevo Inc (NASDAQ:GEVO) released its 8-K filing, announcing its financial results for the third quarter of 2023. The company reported a notable increase in operating revenue and a substantial decrease in loss from operations compared to the same quarter in the previous year.
Financial Performance Overview
Gevo Inc (NASDAQ:GEVO) saw its operating revenue increase to $4.5 million in the third quarter of 2023, up from $309,000 in the third quarter of 2022. This increase was primarily due to sales of Renewable Natural Gas (RNG) and environmental attributes from the company's RNG project. The cost of production also rose to $2.5 million, reflecting the increased production and sales from the RNG project.
Depreciation and amortization expenses increased by $3.3 million due to additional depreciation for RNG assets placed into service in 2022 and accelerated depreciation on Agri-Energy segment assets. However, general and administrative expenses saw a decrease of $0.6 million, primarily due to lower professional consulting fees and personnel costs.
Project development costs increased by $2.6 million, mainly due to higher consulting fees and personnel costs associated with the company's future Net-Zero Projects and Verity. Facility idling costs amounted to $0.9 million for the care and maintenance of the Luverne Facility, which is being used as a development scale plant.
Gevo Inc (NASDAQ:GEVO) reported a decrease in loss from operations by $23.2 million during the third quarter of 2023 compared to the same period in 2022. This was primarily due to the absence of an impairment loss recorded in 2022 and increased activities for Net-Zero Projects and Verity, partially offset by increased operating revenue.
Corporate Highlights and Future Outlook
Dr. Patrick R. Gruber, CEO of Gevo Inc (NASDAQ:GEVO), commented on the company's progress, highlighting the completion of the Front-End Engineering Design (FEED) for the Net-Zero 1 plant and the expansion of the Iowa dairy manure RNG project. He also noted the development of a carbon tracking application for farmers and the receipt of the first licensing payment for ETO technology from LG Chem.
We are on track to meet our annual production goal of more than 310,000 MMBtu, and prove capacity of the system of 400,000 MMBtu per year by year end.
Dr. Gruber expressed optimism about the company's direction, emphasizing the strategic optionality provided by the RNG project and the potential for commercializing deep intellectual property with partners.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, Gevo Inc (NASDAQ:GEVO) had cash and cash equivalents of $323.5 million, with total current assets amounting to $411.2 million. The total assets stood at $669.5 million, while total liabilities were $97.9 million, resulting in total stockholders' equity of $571.5 million.
Net cash used for operating activities during the nine months ended September 30, 2023, was $21.1 million, a decrease from $32.8 million for the same period in 2022. This improvement was attributed to lower cash outflows from changes in operating assets and liabilities.
Gevo Inc (NASDAQ:GEVO) continues to focus on its mission to transform renewable energy and carbon into energy-dense liquid hydrocarbons, aiming to produce fuels with net-zero greenhouse gas emissions. The company's financial results reflect its ongoing efforts to optimize its pathway to profitability and leverage high-growth markets such as Sustainable Aviation Fuel (SAF), RNG, and Carbon Intensity (CI) tracking.
For more detailed information on Gevo Inc (NASDAQ:GEVO)'s financial results, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Gevo Inc for further details.
This article first appeared on GuruFocus.
