August 3, 2023

Aemetis Reports Second Quarter 2023 Financial Results

India Biodiesel Generates Revenues of $33.6 million from Supply to India Oil Marketing Companies

CUPERTINO, Calif. – August 3, 2023 – Aemetis, Inc. (NASDAQ: AMTX), a 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, 2023.

“Revenues of $45.1 million for the second quarter of 2023 reflect our India Biodiesel segment fulfilling $33.6 million of supply contracts from the three Oil Marketing Companies combined with the restart of the Keyes plant in late May as we completed the maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades,” said Todd Waltz, Chief Financial Officer of Aemetis.  “Investments in capital projects were $9.8 million for the first half of 2023 as our engineering and construction teams moved forward with the initiatives outlined in our Five-Year Plan,” added Waltz.

“We are pleased with the many milestones accomplished during the first half of 2023 regarding the Aemetis Biogas assets brought into service including seven biogas digesters and a 40-mile biogas pipeline; our India team fulfilling India government OMC biodiesel sales contracts at our India plant; land and air permitting progress for the Riverbank SAF/RD plant; permitting progress for the Aemetis Carbon Capture business that resulted in the first CO2 characterization well permit issued by the State of California; solar, ZEBREX, MVR and other energy efficiency projects at the Keyes ethanol plant supported by $16.7 million of California Energy Commission and PG&E utility grants; and restarting the Keyes plant in late May during a period of high margins for the ethanol industry,” said Eric McAfee, Chairman and CEO of Aemetis.

We invite investors to review the Aemetis Corporate Presentation on the Aemetis home page prior to the earnings call. On Thursday, August 3, 2023, Aemetis will host an earnings review call at 11:00 a.m. Pacific time (PT).

Live Participant Dial In (Toll Free): +1-888-506-0062 enter code 340104
Live Participant Dial In (International): +1-973-528-0011 enter code 340104

Webcast URL: https://www.webcaster4.com/Webcast/Page/2211/48845

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

 

Financial Results for the Three Months Ended June 30, 2023

Revenues during the second quarter of 2023 were $45.1 million compared to $65.9 million for the second quarter of 2022, principally driven by $33.6 million of sales from India Biodiesel. Our California Ethanol operations restarted after an extended maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades, allowing for the generation of $11.3 million of revenues during late May and June. Delivered corn price decreased significantly from an average price of $10.21 per bushel during the second quarter of 2022 to $6.84 per bushel during the second quarter of 2023.

Gross profit for the second quarter of 2023 was $2.0 million, a significant improvement compared to a $0.2 million gross loss during the second quarter of 2022.

Selling, general and administrative expenses were $9.7 million during the second quarter of 2023, compared to $7.4 million during the second quarter of 2022, including $1.3 million for fixed costs of goods sold that were allocated to selling, general and administrative during the Keyes plant maintenance period. SG&A included $1.8 million of non-cash expense related to stock options and other consideration issued under stock incentive plans.

Operating loss was $7.8 million and $7.7 million each for the second quarter of 2023 and 2022.

Interest expense during the second quarter of 2023 was $9.6 million, excluding accretion and other expenses in connection with Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to $6.7 million during the second quarter of 2022. Additionally, our Aemetis Biogas LLC subsidiary recognized $6.9 million of accretion and other expenses in connection with preference payments on its preferred stock during the second quarter of 2023 compared to $1.5 million during the second quarter of 2022.

Net loss was $25.3 million for the second quarter of 2023, compared to a net loss of $209 thousand for the second quarter of 2022, including the impact in 2022 of a grant of $14.2 million received from the United States Department of Agriculture (“USDA”) Biofuel Producer Program and the release of a litigation reserve of $1.4 million.

Our India plant contributed $5.1 million of Adjusted EBITDA during the three months ended June 30, 2023, offset by Adjusted EBITDA from the restart of the Keyes plant and other operations, for a total company negative Adjusted EBITDA of $4.2 million for the second quarter of 2023.

Cash at the end of the quarter was $3.5 million, compared to $4.3 million at the close of 2022.

 

Financial Results for the Six Months Ended June 30, 2023

Revenues were $47.3 million for the first half of 2023, compared to $118.0 million for the first half of 2022, primarily generated from India Biofuels supplying fuel under contracts with India government oil marketing companies and offset by the extended maintenance cycle which allowed for the acceleration of the implementation of several important ethanol plant efficiency upgrades at the Keyes plant during the first half of 2023.

Gross profit for the first half of 2023 was $661 thousand, a significant improvement compared to a gross loss of $3.3 million during the first half of 2022.

Selling, general and administrative expenses were $20.5 million during the first half of 2023, compared to $14.7 million during the first half of 2022, including $4.0 million of fixed costs of goods sold charged to selling, general and administrative during the Keyes plant maintenance period.

Operating loss was $19.9 million for the first half of 2023, compared to $18.1 million for the first half of 2022.

Interest expense was $18.7 million during the first half of 2023, excluding accretion and other expenses of Series A preferred units in our Aemetis Biogas LLC subsidiary, compared to interest expense of $12.9 million during the first half of 2022. Additionally, our Aemetis Biogas LLC subsidiary recognized $12.4 million of accretion and other expenses in connection with preference payments on its preferred stock during the first half of 2023 compared to $3.1 million during the first half of 2022.

Net loss for the first half of 2023 was $51.7 million and Adjusted EBITDA was negative $11.8 million during the ethanol plant maintenance, upgrade and restart process, compared to a net loss of $18.5 million and Adjusted EBITDA of $3 million during the same period of 2022. Included in net income for 2022 is the receipt of a grant of $14.2 million from the United States Department of Agriculture (“USDA”) Biofuel Producer Program and the release of a litigation reserve of $1.4 million.

Investments in capital projects of $9.8 million were made during the first half of 2023. Investments in capital projects related to Aemetis Biogas were $7.8 million. Investments in capital projects related to the reduction of the carbon intensity of Aemetis ethanol and other initiatives were $2.0 million.

 

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&