Renewable Energy Group, Inc. (NASDAQ:REGI) announced today that the Company is revising its earnings guidance for third quarter 2015.
“Throughout the quarter, we experienced a volatile commodity environment coupled with a significant decline in RIN prices,” said REG President and CEO Daniel J. Oh. “Feedstock prices did not decline as significantly as energy prices and RINs during the quarter, mainly due to continued high industry production levels in anticipation of a retroactive reinstatement of the federal biodiesel mixture excise tax credit.”
If the tax credit is retroactively reinstated as anticipated, the net benefit to Renewable Energy Group for the quarter would be between $35 million and $40 million.
The Company also gave a time range for resumption of production at its Geismar, LA renewable hydrocarbon diesel biorefinery following the September 3 fire at the plant.
“Our first priority at Geismar remains the recovery of our employee and the three contractors who were injured,” said Oh. “Our thoughts and prayers remain with them and their families.”
“The structural damage from the September fire was far less than the April incident. We continue to have great confidence in the technology and facility. Our current estimate is that our team will have the plant back online by the end of January.”
It is kind of a pet peeve of ours when a company reports earnings on a non-GAAP (Generally Accepted Accounting Principles) basis. The company did, however, include a reconciliation of the preliminary range of adjusted EBITDA for the third quarter to net loss computed in accordance with GAAP in the table below.
|Three months ended|
|September 30, 2015|
|Depreciation and amortization||7.6||7.6|
|Stock based compensation||1.2||1.2|
ST Staff Writers
This post was prepared by Solar Thermal Magazine staff.