Gevo Inc (NASDAQ:GEVO) reported that it ended the second quarter flush with cash and equivalents of $546.8M as it spotlighted a slew of recent high-profile sales agreements.
For the period ended June 30, 2022, the Englewood, Colorado-based company sold nine thousand gallons of sustainable aviation fuel (SAF), isooctane, and isooctene from its Luverne Facility.
The company said revenue decreased to $0.1 million, compared to $0.3 million in 2Q 2021, due mainly to its Luverne facility being operated for Gevo’s development projects on an as needed basis.
READ: Gevo and Alaska Airlines enter into five-year sustainable aviation fuel sales agreement
During the quarter, Gevo cut losses from operations to $16.1 million, compared to $19.1 million in the corresponding period a year earlier. Similarly, the firm logged a GAAP net loss per share and non-GAAP adjusted net loss per share of $0.06 for the quarter, compared to $0.09 in 2Q 2021.
Gevo rounded out the quarter with cash, equivalents, restricted cash, and marketable securities of $546.8 million, compared to $475.8 million at the end of Q4 2021.
In a statement accompanying the numbers, Gevo CEO Dr Patrick R. Gruber said: “Given our continued success in securing SAF supply agreements as well as the additional interest that we are witnessing in the marketplace, there should not be any question about the potential size of the market for renewable fuels.”
“Our goal is to build SAF production capacity at a rate that will establish Gevo and its partners as a market leader and powerhouse in the renewable fuels sector. It all starts with NZ1, the engineering and design is going well. Based on what we see today we expect to stay on schedule for the 2025 start-up.”
On July 25 this year, Gevo completed the purchase of 245 acres of land near Lake Preston, South Dakota for its Net-Zero 1 production facility, which will produce energy-dense liquid hydrocarbons that should have a net-zero greenhouse gas footprint across the whole of the life cycle when burned as transportation fuels.
Meanwhile, Dr Gruber noted that Gevo's RNG project continues to “ramp to nameplate capacity of 355,000 MMBtu.”
“All three dairies are now producing biogas which is then upgraded and injected into the sales pipeline. That RNG is sold into the California market by our marketing partner, BP (LON:BP),” added Dr Gruber. “We continue to collect the performance data for our application to the California Air Resource Board to receive LCFS credits and the Renewable Fuel Standard Program for RINs."
In addition, Gevo highlighted the following:
- On July 18, 2022, Gevo signed a financeable fuel sales agreement with American Airlines (NASDAQ:AAL) Inc to supply 100 million gallons per year of SAF for five years from Gevo’s future commercial operations. Investors can find other sales deals here;
- Gevo now has over 350 million gallons per year (MGPY) of financeable SAF and hydrocarbon fuel supply agreements, which based on current market projections, represents $2.1 billion in expected revenue per year, inclusive of the value of environmental benefits. The contracts are expected to help Gevo secure project debt financing;
- On June 5, 2022, Gevo executed a registered direct offering of 33.3 million shares to institutional investors. The offering closed on June 8, providing net proceeds of $139 million. As part of the offering, Gevo issued 33.3 million Series 2022-A Warrants with an exercise price of $4.37 per share.
Gevo will host a conference call on Monday at 4.30 pm ET (2.30 pm MDT)
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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