Aemetis(US:AMTX)2024-05-09 23:47Financial Data and Key Metrics Changes - Revenues for Q1 2024 were $72.6 million, a significant increase from $2.2 million in Q1 2023, attributed to the Keyes plant returning to full operation [7] - Gross loss decreased to $612,000 in Q1 2024 from $1.3 million in Q1 2023 [8] - Net loss for Q1 2024 was $24.2 million, compared to a net loss of $26.4 million in Q1 2023 [8] - Cash at the end of Q1 2024 was $1.6 million, down from $2.7 million at the end of Q4 2023 [8] Business Line Data and Key Metrics Changes - The dairy renewable natural gas segment produced 60.3 million BTUs and generated $3.8 million in revenue [7] - The Indian biodiesel business generated $32.7 million in revenue, primarily from sales to three India Oil Marketing companies [7] - Selling, general and administrative expenses decreased to $8.9 million in Q1 2024 from $10.8 million in Q1 2023 [8] Market Data and Key Metrics Changes - The California Air Resources Board (CARB) is expected to adopt a 20-year mandate for rapid decarbonization of transportation, benefiting low carbon intensity renewable fuels [12] - The renewable natural gas market is anticipated to grow significantly as new dairy digesters are built and as CARB approves provisional pathway applications [11] Company Strategy and Development Direction - Aemetis plans to accelerate biogas digester development in 2024, expecting to close $60 million in new private financing [10] - The company is positioned to benefit from the Inflation Reduction Act 45Z production tax credits starting January 2025 [12] - Aemetis is developing a sustainable aviation fuel and renewable diesel plant in Riverbank, California, with significant supply contracts already signed [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the renewable natural gas segment, anticipating significant revenue increases as new digesters come online [11] - The company is focused on expanding capacity, improving energy efficiency, and reducing carbon intensity across all business segments [18] - Management highlighted the importance of innovative pricing structures for sustainable aviation fuel to enhance cash flow and financing [64] Other Important Information - Aemetis has received $150 million in biodiesel sales allocations under a cost-plus contract structure in India, which is expected to positively impact EBITDA [16] - The company has completed construction of an on-site solar energy facility to reduce energy costs and carbon intensity [17] Q&A Session Summary Question: What is the probability of CARB adopting a higher step-down for emissions? - Management believes CARB will likely adopt a step-down greater than 5% due to increasing market rates and discussions with Wall Street [22] Question: How many dairies are expected to be operational by year-end 2024? - Management is tracking 18 dairies expected to be operational by the end of 2024, with the largest impact anticipated in 2025 [25] Question: What progress has been made on EB-5 financing? - Management reported raising approximately $40 million under the EB-5 program and is in the process of securing additional investors [28] Question: What is the expected ramp in LCFS credits? - Management expects to double LCFS credits revenue as early as July 1, pending approval from CARB [37] Question: How should CapEx be viewed for the Keyes plant and Riverbank projects? - CapEx for the Keyes plant will be back-loaded for the year, with minimal downtime expected during upgrades [61][62] Question: Will LCFS credits be sold on a regular basis? - Management confirmed that LCFS credits will be sold early in each quarter, with expectations of increased revenue from new projects [68]