Aemetis(US:AMTX)2021-08-13 01:49Financial Data and Key Metrics Changes - Revenues for Q2 2021 were $54.9 million, up from $47.8 million in Q2 2020, reflecting a year-over-year increase of approximately 23% [8] - Gross profit decreased to $3.6 million in Q2 2021 from $14.1 million in Q2 2020, indicating a significant decline in profitability [9] - Operating loss was $2.1 million for Q2 2021 compared to an operating income of $10 million in Q2 2020, driven by lower demand and rising corn prices [9] - Net loss for Q2 2021 was $10.6 million, a stark contrast to net income of $2.2 million in Q2 2020 [10] - Cash at the end of Q2 2021 increased to $7.2 million from $600,000 at the end of 2020, indicating improved liquidity [11] Business Line Data and Key Metrics Changes - North America operations showed steady growth, with an increase in ethanol selling price from $2.63 per gallon to $2.78 per gallon, while delivered corn prices rose from $4.55 per bushel to $8.04 per bushel [8] - The North America segment accounted for nearly all reported consolidated gross profit in both periods [9] - The dairy-based renewable natural gas (RNG) business marked its first anniversary of commercial production, contributing to the company's focus on negative carbon intensity products [18] Market Data and Key Metrics Changes - Increased COVID-19 infection rates and high steering costs negatively impacted sales in India, affecting overall performance [8] - Domestic gasoline demand is at approximately 95% of 2019 levels, while U.S. ethanol exports are down by about 9% year-over-year for the first half of 2021 [28] Company Strategy and Development Direction - Aemetis is focused on producing below zero carbon intensity products, including renewable natural gas and renewable fuels, leveraging carbon credits under various regulatory frameworks [12] - The company aims to become a $1 billion revenue business without heavily diluting shareholders, emphasizing a long-term growth strategy [15] - Aemetis is pursuing long-term, low-interest loans as financing tools instead of dilutive equity financing, indicating a strategic shift in capital structure [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over the lack of enforcement of the Renewable Fuel Standard by the Biden administration, which could impact industry sustainability [53] - The company remains optimistic about achieving its EBITDA guidance of $325 million, contingent on regulatory support and market conditions [52] Other Important Information - Aemetis has been awarded approximately $23 million in grants for its dairy biogas project and renewable natural gas production [27] - The company is actively engaged in expanding its network of dairy digesters and supporting infrastructure to enhance RNG production [21][26] Q&A Session Summary Question: Timeline for dairy digesters coming online - Management clarified that the goal is to have the next five dairies operational by the end of Q2 2022, with a total of 15 expected by the end of 2022 [48][60] Question: Impact of feedstock costs on operations - Management noted that while feedstock costs have increased, they are uniquely positioned to leverage animal tallow and waste cooking oil from India to mitigate these pressures [55] Question: CapEx expectations for 2022 - Management indicated that CapEx would likely see an increase in 2022, with expectations of approximately $20 million to $30 million in the second half of 2021 and additional costs in 2022 for ongoing projects [66]