US-based biorefinery owner and operator Renewable Energy Group (REG) announced Tuesday during their third quarter 2017 financial results increased production and total revenue figures, despite the lapsed biodiesel blenders tax credit (BTC) and record Argentine biodiesel imports.
The Ames, Iowa-based biomass-based diesel producer reported 92% capacity utilization and 120.3mn gallons of fuel produced during the third quarter of 2017, a near 5% increase from the prior year despite Gulf Coast facility production outages during Hurricane Harvey.
The company reported total gallons sold of 151.5mn gallons, at an average price of $3.21/gal, an over 7% and 2% fall, respectively, from the previous year due to fewer third-party sales and lower volumes from REG operations in Germany.
Revenues during this period were $627mn, a 0.4% increase.
During the third quarter, REG reported a $25mn risk management loss, due in large part, according to interim company president Randy Howard, subsidized Argentine biodiesel imports continuing at record levels through August, when the preliminary trade duties were first imposed from the U.S. Department of Commerce and the International Trade Commission.
Howard went on to add however that the recorded loss met the companies third quarter guidance, and assuming the retroactive reinstatement of the BTC for 2017, an adjusted EBITDA of approximately $200mn was anticipated for the full-year 2017 results, surpassing the company’s goal of $150mn.
“Recent developments in the trade case and renewable volume obligations are positive and we look forward to further clarity in the fourth quarter on retroactive reinstatement of the BTC and possible reform to a domestic production incentive,” Howard added.
Renewable Energy Group owns and operates 15 biorefineries globally, with a nameplate production capacity of 502mn gallons annually. The company is currently completing construction for four additional biorefineries across the US, with an estimated annual production capacity of 150mn gallons.