Aemetis Enters into Multi-year Biodiesel Supply Agreement with BP

CUPERTINO, CA – May 25, 2017 – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary in India has signed a three-year biofuels supply agreement with BP Singapore Pte Limited (BPS), the regional trading arm of BP Plc, which has an expanding biofuels portfolio.

“The agreement sets forth the logistics, pricing and other terms of the supply to BPS of low carbon biodiesel,” stated Eric McAfee, Chairman and CEO of Aemetis. “We expect production to commence this quarter and shipments to foreign markets to begin in the third quarter of 2017.”

“The agreement with Universal Biofuels gives us access to low carbon biofuels, which is aligned with our strategy in transitioning to a lower carbon future,” said Paul Lantero, Chief Operating Officer for BP in Singapore. “This deal bolsters our biofuels presence in Asia and other regions.”

The Aemetis plant in Kakinada, Andhra Pradesh has a capacity of 50 million gallons per year and is the first and only India biofuels producer approved under the Low Carbon Fuel Standard for delivery of tallow and waste oil biodiesel into California. In April 2017, Aemetis filed a patent on process technology developed at the Kakinada, India plant for the conversion of a wide range of waste feedstocks into biodiesel.

India moving beyond oil as seeks alternatives to OPEC

By Dmitry Zhdannikov, Ernest Scheyder and Nidhi Verma VIENNA/NEW DELHI (Reuters) – OPEC production cuts and the prospect of more expensive oil are pushing India to consider U.S. and Canadian suppliers, as well as encouraging it to turn to renewable energy, the country’s petroleum and natural gas minister said on Monday. Dharmendra Pradhan made the comments in Vienna ahead of OPEC’s meeting this Thursday when members will decide whether to extend production cuts to ease the global oil glut that has grown in tandem with rising North American output. Pradhan said India, the world’s third biggest consumer, would act in its national interest to secure inexpensive crude, expand its use of natural gas as it seeks to honour the Paris climate change agreement and is keen to explore biodiesel and other renewable fuels. “I want to protect my consumers’ interests,” Pradhan, who assumed his role in 2014, said in an interview. “India’s leadership is very focussed on energy security for all its citizens.” The Organization of the Petroleum Exporting Countries had sought to undermine the North American oil boom for several years by raising output, which pushed prices too low for costly shale producers. But low prices also hurt OPEC states, encouraging them to change tack and limit output. Pradhan acknowledged that OPEC’s production cuts are an attempt to stem the crude price slide, but said he was worried that it could result in under-investment in the energy sector and push prices up in the long run. “Gone are the days of market stability for consumers,” he said. “Now, producers seek market stability.” India has been in touch with oil suppliers it had not traditionally used and said Indian refiners were “working out details of the strategy to buy cargos, including from the USA and Canada, which happens to be becoming very competitive. “We know shale used to be competitive only at prices above $60 (46.14 pounds) (per barrel). Now we know that is $40.” India now imports 86 percent of its oil needs from OPEC states to meet its 4.6 million barrels per day (bpd) refining capacity. Pradhan said India planned to raise refining capacity to 6.2 million bpd by 2023. Pradhan also said OPEC producers should work towards a “responsible price” for oil and Asia should be treated on a equal footing with Western consumers. “India is very price sensitive. We want to be competitive in our domestic market. We want to source our crude oil from a competitive market, from every part of the world,” he said, adding that India was expanding its use of renewable energy, such as solar and wind, and encouraging electric vehicles. “We need to realise that the oil industry is at a delicate crossroad and higher crude prices will give a further push to renewables,” he said. Pradhan also said he is intrigued by biodiesel, referring to it as a “green hydrocarbon” that could be produced domestically by processing the national’s vast supply of agricultural waste. “The dynamics of oil transportation are changing,” Pradhan said. “I personally see a lot of potential (in biodiesel). It’s a non-fossil fuel hydrocarbon.” OPEC Secretary General Mohammad Sanusi Barkindo said after meeting Pradhan on Monday that OPEC estimated Indian oil demand would rise by more than 150 percent by 2040 to about to 10.1 million bpd, accounting for 9 percent of global demand from 4 percent now. India’s per capita energy consumption was 0.55 tonnes of oil equivalent, far below the global average of 1.9 tonnes of oil equivalent, Pradhan said, adding energy consumption was expected to almost double by 2035.”

India moving beyond oil as seeks alternatives to OPEC, REUTERS 22/05/2017

Aemetis CEO to Present at B. Riley & Co. Institutional Investor Conference on May 25th

CUPERTINO, CA – May 23, 2017 – Aemetis, Inc. (NASDAQ: AMTX) today announced that Eric McAfee, Chairman and CEO, is scheduled to present at 9:30 am Pacific Time on Thursday, May 25, 2017 at the Institutional Investor Conference hosted by B. Riley & Co. The conference will be held at the Loews Santa Monica Beach Hotel in Santa Monica, CA.

Aemetis wins $6M biodiesel supply contract with India state oilcos

“In California, Aemetis’ Universal Biofuels subsidiary has won its first contract to supply biodiesel to the India government-owned Oil Marketing Companies in a public tender process.  The total diesel market in India is approximately 25 billion gallons per year, of which less than 250 million gallons per year of biodiesel is currently blended.  The OMC’s provide about 70% of the fuel consumed in India, and the diesel fuel market is growing at a rate of more than 5% per year.”

— Jim Lane, Biofuels Digest

Aemetis, Inc. Reports First Quarter 2017 Financial Results

CUPERTINO, Calif. – May 11, 2017 – Aemetis, Inc. (NASDAQ: AMTX), an advanced renewable fuels and biochemicals company, today announced its financial results for the three months ended March 31, 2017.

“During the first quarter, ethanol revenues increased by 12% on higher ethanol volume and prices compared to the first quarter of 2016, but gross margins were negatively impacted by an increase in feedstock costs due to an unusually wet winter in California and the resulting higher rail costs,” stated Eric McAfee, Chairman and CEO of Aemetis.  “During the second quarter, rail costs have returned to more normal levels and ethanol margins have improved as corn prices remain moderated.  Our business in India has entered a growth phase by recently winning a biodiesel supply contract with domestic Oil Marketing Companies in India, and we are finalizing an international biodiesel supply contract with a major oil company.  These new customers are in addition to our existing bulk and fleet customers in India.”

Today, Aemetis will host an earnings review call at 11:00 am Pacific (PT). For details on the call, visit: www.aemetis.com/investors/conference-call/

Financial Results for the Three Months Ended March 31, 2017

Revenues were $31.6 million for the first quarter of 2017, compared to $33.3 million for the first quarter of 2016. Increases in ethanol production and average selling prices resulted in an additional $1.9 million of revenue, which was offset by $3.6 million of lower volumes of biodiesel sales, resulting in lower revenues during the first quarter as compared to the same period in 2016.  Gross loss for the first quarter of 2017 was $0.6 million, compared to gross profit of $2.1 million during the first quarter of 2016.  During the first quarter, gross margins declined due to higher feedstock costs, principally from rail dislocation associated with wet winter weather in California and lower distillers grains prices.

Selling, general and administrative expenses were $3.3 million in the first quarter of 2017, compared to $3.0 million in the first quarter of 2016.  The increase in selling, general and administrative expenses was driven by an increase in share based compensation compared to the same period of the prior year.

Operating loss was $4.0 million for the first quarter of 2017, compared to operating loss of $1.0 million for the same period in 2016.

Net loss was $8.5 million for the first quarter of 2017, compared to net loss of $5.1 million for the first quarter of 2016.

Adjusted EBITDA loss for the first quarter of 2017 was $2.4 million, compared to Adjusted EBITDA of $250 thousand for the same period in 2016.

Cash at the end of the first quarter was $231 thousand compared to $1,486 thousand at the close of 2016.

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of second-generation ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in the California Central Valley near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe.  Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

NON-GAAP FINANCIAL INFORMATION

We have provided non-GAAP measures as a supplement to financial results based on GAAP. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying supplemental data. Adjusted EBITDA is defined as net income/(loss) plus (to the extent deducted in calculating such net income) interest expense, loss on extinguishment, income tax expense, intangible and other amortization expense, depreciation expense and share-based compensation expense. Adjusted EBITDA is not calculated in accordance with GAAP and should not be considered as an alternative to net income/(loss), operating income or any other performance measures derived in accordance with GAAP or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA is presented solely as a supplemental disclosure because management believes that it is a useful performance measure that is widely used within the industry in which we operate. In addition, management uses Adjusted EBITDA for reviewing financial results and for budgeting and planning purposes.  EBITDA measures are not calculated in the same manner by all companies and, accordingly, may not be an appropriate measure for comparison. Safe Harbor Statement This news release contains forward-looking statements, including statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events or other statements that are not historical facts. Forward-looking statements in this news release include, without limitation, expectations for growth in India, the impact that the recent regulatory changes in India will have on our business expectations for uses of EB-5 funding and expectations for receipt of additional EB-5 funding. Words or phrases such as “anticipates,” “may,” “will,” “should,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “showing signs,” “targets,” “will likely result,” “will continue” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on current assumptions and predictions and are subject to numerous risks and uncertainties.  Actual results or events could differ materially from those set forth or implied by such forward-looking statements and related assumptions due to certain factors, including, without limitation, competition in the ethanol, biodiesel and other industries in which we operate, commodity market risks including those that may result from current weather conditions, financial market risks, customer adoption, counter-party risks, risks associated with changes to federal policy or regulation, and other risks detailed in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2015, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and in our subsequent filings with the SEC. We are not obligated, and do not intend, to update any of these forward-looking statements at any time unless an update is required by applicable securities laws.

 

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Aemetis Wins $6 million Biodiesel Supply Contract with India Government Oil Companies

CUPERTINO, CA – May 10, 2017 – Aemetis, Inc. (NASDAQ: AMTX) announced today that its Universal Biofuels subsidiary has won its first contract to supply biodiesel to the India government-owned Oil Marketing Companies (“OMC”) in a public tender process.  The total diesel market in India is approximately 25 billion gallons per year, of which less than 250 million gallons per year of biodiesel is currently blended.  The OMC’s provide about 70% of the fuel consumed in India, and the diesel fuel market is growing at a rate of more than 5% per year.

In 2016, the India government approved the use of up to 100% biodiesel to blend or replace diesel fuel, but biodiesel producers are currently limited to sales directly to bulk customers including trucking and bus companies and to Oil Marketing Companies.   The government approval for sales of 100% biodiesel by producers to retail fuel stations is in the review process, but OMC’s are already approved to market blended biodiesel to railroads, bulk customers and retail stations.

“This Oil Marketing Company supply contract is a milestone in expanding the customer base for our 50 million gallon per year capacity India biodiesel plant,” stated Eric McAfee, Chairman and CEO of Aemetis.  “The 80% reduction in particulate emissions provided by biodiesel is important for the improvement of air quality in India.  The large capital investment in India made by Aemetis as a US company is aligned with the goals of Prime Minister Modi and Chief Minister Naidu in Andhra Pradesh.  We look forward to expanding our biodiesel production capacity through capital investment and acquisitions to meet the growing demand for biodiesel and other renewable fuels in India.”

Aemetis employs about 82 employees in India at its plant in Kakinada, Andhra Pradesh and headquarters in Hyderabad, Telangana.  The plant was constructed in 2008 and was expanded to produce refined glycerin in 2013.

About Aemetis

Headquartered in Cupertino, California, Aemetis is an advanced renewable fuels and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace traditional petroleum-based products by the conversion of second-generation ethanol and biodiesel plants into advanced biorefineries.  Founded in 2006, Aemetis owns and operates a 60 million gallon per year ethanol production facility in California’s Central Valley, near Modesto.  Aemetis also owns and operates a 50 million gallon per year renewable chemical and advanced fuel production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe.  Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds a portfolio of patents and related technology licenses for the production of renewable fuels and biochemicals.  For additional information about Aemetis, please visit www.aemetis.com.

Aemetis to Review First Quarter Financial Results on May 11, 2017

CUPERTINO, CA – May 5, 2017 – Aemetis, Inc. (NASDAQ: AMTX) announced that the company will host a conference call to review the release of its first quarter 2017 earnings report:Date: Thursday, May 11, 2017 Time: 11 am Pacific Time (PT) Live Participant Dial In (Toll Free): (866) 682-6100 Live Participant

Date: Thursday, May 11, 2017

Time: 11 am Pacific Time (PT)

Live Participant Dial In (Toll Free): (866) 682-6100

Live Participant Dial In (International): (862) 255-5401

Webcast URL: http://www.investorcalendar.com/IC/CEPage.asp?ID=175933

Attendees may submit questions during the Q&A portion of the conference call.

After May 11th, the webcast will be available on the Company’s website (www.aemetis.com) under Investors/Conference Calls. The voice recording will also be available through May 18, 2017 by dialing (Toll Free) 877-481-4010 or (International) 919-882-2331 and entering conference ID number 10377.

Let’s Not Forget Carbon Just Yet: Ethanol Still Necessary

“‘Reports of my death have been greatly exaggerated.’ The famous quote attributed to Mark Twain fits these days as it relates to the national interest in reducing carbon emissions. Without question, we are seeing a de-emphasis on lowering carbon at the federal level, but it does not mean the issue is going away or that low-carbon fuels have no value. While the pendulum appears to be swinging from one extreme to the other, it is likely to settle somewhere in the middle. Fuels that help automakers achieve efficiency standards are going to be important.”
—  Ron Alverson, Ethanol Producer Magazine

Full Article

ASTM Calls New 100 Octane Fuel Spec “Groundbreaking”

“ASTM announced the completion of a groundbreaking new standard that supports 100 octane fuel. The D8076 standard responds to an effort by engine manufacturers and others to create a broadly accepted specification for this higher-octane fuel which can withstand higher compressions before igniting, thus extracting more energy from a given quantity of fuel. ”
— Susanne Retka Schill, Ethanol Producer Magazine

Full Article