Cupertino, California-based renewable fuels and biochemical producer Aemetis reported increased North American revenues during the third quarter of 2017, driven by early commercial yields from the company’s patent pending enzymatic biodiesel technology.
Chief Executive Eric McAfee stated that costs advantages domestically and export-wise resulting from the new technology should lead to increased shipments to both BP and its existing customer base in India.
The multinational manufacturer of advanced fuels and chemicals said in its third quarter 2017 financial report Thursday that overall revenues were negatively impacted by softer results from their Indian operating segment experiencing a delay in the start of its BP contract. This was coupled with market demand reductions tied to the introduction of a new Goods and Services tax structure in the country.
Aemetis posted a gross margin of $2mn in the quarter, down 46% YoY. Weakened gross profit during the quarter was largely attributed to pricing pressure on West Coast ethanol resulting from Brazilian imports into California during the period.
The company sold 15.4mn gallons of ethanol at an average price of $1.81/gal during the third quarter of 2017, a 3% and 4% rise, respectively, from the prior year.
Aemtis’ biodiesel segment sales during the period fell 50% from the prior year, totaling 3000mt, while average selling price totaled $837/mt, a near 2% rise from the third quarter of 2016.
Delivered corn and milo bushels totaled 5.5mn/bu at an average delivered cost of $4.65/bu, a 6% and 4% rise from the prior year.
The company posted a net loss of $7.5mn for the third quarter of 2017, a rise from last year’s third quarter loss of $4.1mn.
Company chief Eric McAfee announced that production equipment installation had been completed at the Kakinada plant allowing for the use of low cost, low carbon feedstock for production purposes.
Along with its Indian production facility, Aemetis operates an ethanol production plant in Keyes, California. Combined production estimates for the facilities total 110mn gallons annually.