Clayton, Missouri-based biofuels producer and chemical products manufacturer FutureFuel announced Thursday that despite higher revenues, gross profits were down in the third quarter of 2017.
FutureFuel reported revenues of $77.6mn in the July through September period of 2017, a 12% gain from the $69.3mn registered during the same stretch of 2016. Revenue strictly attained through the sale of biofuels reached $49.3mn in the third quarter of 2017, a 9.8% increase from the third quarter of 2016.
Despite Future Fuels partly attributing the higher revenues to increased prices for biofuels, the company also cited the end of the federal blenders’ tax credit (BTC) last year as a factor in curtailing sales volumes. As a result, profits during the third quarter of 2017 dropped to $5.5mn, a 46.4% decrease compared to the third of quarter of 2016. In fact, FutureFuel’s biofuels sector lost a net $2.5mn in the three-month period ending 30 September 2017, contrasting the near $2.5mn in profit registered in the same period of 2016.
Still, FutureFuel CEO Tom McKinlay expressed a positive outlook for the company’s biofuels prospects moving forward. McKinlay mentioned the anti-dumping duties levied on Argentinian and Indonesian biodiesel suppliers by the US Department of Commerce (DoC), as well as the Environmental Protection Agency’s (EPA’s) recent assurance to likely maintain the proposed Renewable Volume Obligations (RVOs) under the federal Renewable Fuel Standard (RFS2), as measures to create a fairer environment for US biodiesel producers.
FutureFuel owns and operates a chemical manufacturing and biofuel production facility near Batesville, Arkansas, employing over 400 people.