August 4, 2022

Aemetis Reports Second Quarter 2022 Financial Results Revenue Increased 20% over Q2 2021

CUPERTINO, Calif. – August 4, 2022 – Aemetis, Inc. (NASDAQ: AMTX), an international renewable natural gas and renewable fuels company focused on negative carbon intensity products, today announced its financial results for the three and six months ended June 30, 2022.

“Revenues for the second quarter of 2022 increased 20% to $65.9 million, compared to $54.9 million during the second quarter of 2021 as expanded demand for liquid transportation fuels raised our average ethanol price to $3.13 per gallon,” said Todd Waltz, Chief Financial Officer of Aemetis. “Investments in capital projects that reduce carbon intensity were $12.1 million for the second quarter of 2022, and $23.5 million year to date, as our engineering and construction teams moved forward with the initiatives outlined in our Five-Year Plan,” added Waltz.

“We are pleased with the milestones accomplished during the first half of 2022, including the launch of operational management of the 125-acre Riverbank Industrial Complex for our sustainable aviation fuel and renewable diesel plant, the purchase of 24 acres for the carbon capture and sequestration injection well at the Riverbank site, and signing $3.5 billion in off-take agreements for sustainable aviation fuel with major airlines and $3.2 billion in off-take contracts for renewable diesel with a leading travel stop chain,” said Eric McAfee, Chairman and CEO of Aemetis.  “The Aemetis Biogas RNG project progressed with construction in progress on five dairy digesters, completing construction of 20 miles of our 40-mile biogas pipeline, completing the biogas-to-RNG production facility and commissioning of the utility gas pipeline interconnection unit.   Importantly, we closed two low-interest rate credit facilities for a total of up to $100 million of new financing to fund the pre-project financing of the carbon reduction projects at the Keyes ethanol plant and to fund the pre-project financing of land, engineering, permitting, test wells and related equipment for the jet/diesel plant and the two CO2 sequestration wells.

These milestones reflect our execution of the projects under our Five-Year Plan that produce negative carbon intensity products and rapidly grow value for Aemetis shareholders.  We invite investors to review the Aemetis Corporate Presentation on the Aemetis home page prior to the earnings call.

Today, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).

Live Participant Dial In (Toll Free): +1-877-545-0523 entry code 571805
Live Participant Dial In (International): +1-973-528-0016 entry code 571805

Webcast URL:  https://www.webcaster4.com/Webcast/Page/2211/46277

For details on the call, please visit http://www.aemetis.com/investors/conference-calls/

 

Financial Results for the Three Months Ended June 30, 2022

Revenues during the second quarter of 2022 increased 20% to $65.9 million compared to $54.9 million for the second quarter of 2021.  Our California Ethanol operations experienced steady sales volume with an increase in the selling price of ethanol from $2.78 per gallon in the second quarter of 2021 to $3.13 per gallon in the second quarter of 2022. Delivered corn price increased significantly from an average price of $8.04 per bushel during the second quarter of 2021 to $10.21 per bushel during the second quarter of 2022, as continued poor railroad performance impacted the delivered cost and supply of corn into California.

Gross loss for the second quarter of 2022 was $214,000, compared to $3.6 million gross profit during the second quarter of 2021.  Our California Ethanol segment accounted for substantially all of the reported, consolidated gross loss or profit, respectively, in both periods.

Selling, general and administrative expenses were $7.1 million during the second quarter of 2022, compared to $5.8 million during the second quarter of 2021 as a result of investments in our ultra-low carbon initiatives and non-cash charges for stock compensation.

Operating loss was $7.7 million for the second quarter of 2022, compared to an operating loss of $2.1 million for the second quarter of 2021.

Interest expense during the second quarter of 2022 was $6.7 million, excluding accretion and other expenses in connection with Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to $5.2 million during the second quarter of 2021.  Additionally, our Aemetis Biogas LLC subsidiary recognized $1.5 million of accretion and other expenses in connection with preference payments on its preferred stock during the second quarter of 2022 compared to $3.8 million during the second quarter of 2021.

The EdenIQ litigation was settled during the second quarter of 2022 for $4.8 million, including litigation costs, allowing for the release of $1.4 million of litigation reserves.  Additionally, a grant of $14.2 million was received from the United States Department of Agriculture (“USDA”) Biofuel Producer Program.

Net loss was $209,000 for the second quarter of 2022, compared to a net loss of $10.6 million for the second quarter of 2021.

Cash at the end of the second quarter of 2021 was $3.6 million, compared to $7.8 million at the close of the fourth quarter of 2021.  Investments in capital projects of $12.1 million were made during the second quarter of 2022 further highlighting our commitment to build ultra-low carbon projects.

 

Financial Results for the Six Months Ended June 30, 2022

Revenues were $118.0 million for the first half of 2022, compared to $97.7 million for the first half of 2021, driven by an increase in the selling price of ethanol to $2.86 per gallon from $2.34 per gallon on sales of 29.9 million gallons compared to 30.8 million gallons during the same period of 2021.

Gross loss for the first half of 2022 was $3.3 million, compared to a gross profit of $38 thousand during the first half of 2021, primarily attributable to delivered corn price increasing $9.50 per bushel during the first half of 2022 from $7.44 per bushel during the first half of 2021.

Selling, general and administrative expenses were $14.4 million during the first half of 2022, compared to $11.1 million during the first half of 2021.

Operating loss was $18.1 million for the first half of 2022, compared to $11.1 million for the first half of 2021.

Interest expense was $12.9 million during the first half of 2022, excluding accretion and other expenses of Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to interest expense of $12.4 million during the first half of 2021.  Additionally, our Aemetis Biogas LLC subsidiary recognized $3.1 million of accretion and other expenses in connection with preference payments on its preferred stock during the first half of 2022 compared to $5.7 million during the first half of 2021.

 

About Aemetis

Aemetis has a mission to transform renewable energy with below zero carbon intensity transportation fuels. Aemetis has launched the Carbon Zero production process to decarbonize the transportation sector using today’s infrastructure.

Aemetis Carbon Zero products include zero-carbon fuels that can “drop-in” to be used in airplanes, truck, and ship fleets. Aemetis low-carbon fuels have substantially reduced carbon intensity compared to standard petroleum fossil-based fuels across their lifecycle.

Headquartered in Cupertino, Calif