US-based biorefinery owner and operator Renewable Energy Group (REG) announced Monday increased production, sales, and revenue figures during the second quarter of 2018, while excluding allocations from the federal biodiesel blenders tax credit (BTC).
The Ames, Iowa-based biomass diesel producer reported 124mn gallons of fuel produced during the second quarter of 2018, a 6% increase from the prior year. Total gallons sold during the three-month period registered 172mn gal, an over 7% YoY increase. Revenues during this period were $580.2mn, a near 10% increase from the previous year.
The company primarily attributed the revenue increase to the increase in gallons sold and average selling price, which rose nearly 10pc from the previous year to $3.11/gallon.
“We produced outstanding results in the first half of the year, demonstrating our ability to execute across all aspects of our business,” said REG President and Chief Executive Officer Randy Howard.
“We tripled our Adjusted EBITDA for the first six months compared to last year, excluding allocation of the 2017 BTC, which is an accomplishment made even more impressive because our Geismar renewable diesel refinery was offline for three weeks due to planned maintenance. With Geismar back online and once again producing above nameplate capacity, combined with a solid margin environment, we look forward to a strong second half of the year.”
The nation’s largest producer of biodiesel anticipates gallons sold to average between 175-190mn during Q3 2018, a figure which would represent between a 2-10% increase from Q2 totals. The company also anticipates an adjusted EBITDA between $35-50mn, with an adjusted EBITDA between $95-110mn if the BTC is retroactively reinstated for 2018.
Renewable Energy Group owns and operates 15 biorefineries globally, with a nameplate production capacity of 502mn gallons annually. The company is currently constructing four additional biorefineries across the US, with an estimated annual production capacity of 150mn gallons.