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Clean Energy reports gallons delivered and revenue for 4Q15

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Hydrocarbon Engineering,


Clean Energy Fuels Corp. (Clean Energy or the company) has announced operating results for the 4Q15 and year ended 31 December 2015.

The company delivered 78.3 million gal. in the 4Q15, an 8.1% increase from 72.4 million gal. in the 4Q14. For the year ended 31 December 2015 the company delivered 308.5 million gal. a 16.4% increase from 265.1 million gal. delivered in the year ended 31 December 2014.

Revenue for the 4Q15 was US$119.3 million, a 9.7% decrease from US$132.1 million of revenue for the 4Q14. Revenue for the 4Q15 and 2014 included US$31.0 million and US$28.4 million, respectively, of excise tax credits for alternative fuels (VETC). VETC is in effect through 31 December 2016 and will be recognised as earned during each quarter of 2016. Increased VETC revenue and US$4.9 million of revenue from incremental volumes partially offset the decline in revenue.

Revenue for the year ended 31 December 2015 was US$384.3 million, a 10.4% decrease from US$428.9 million for the year ended 31 December 2014. Revenue of US$36.6 million from incremental volumes partially offset the decline in revenue.

The revenue decreases in the 4Q15 and year ended 31 December 2015 were primarily due to the lower cost of natural gas, continued softness in the company’s global compressor business due to low oil prices and a strong US dollar, and less construction revenue caused by the type and timing of completed projects.

Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated, “We continue to make progress and improve our results in a tough low oil price market. Year over year we experienced double digit volume growth, and our adjusted EBITDA remained positive and improved over our last quarter and last year. We are encouraged by the many bright spots in our business, including the more than 100% increase in our Redeem™ renewable natural gas volumes in 2015, our substantial reductions in SG&A expenses, and the sustained strength of the refuse and transit markets. We continue to leverage our natural gas fuelling infrastructure and solid foundation of recurring volumes while remaining focused on our capital structure as evidenced by our recent reduction in our convertible debt by US$92.5 million.”

Adjusted EBITDA for the 4Q15 was US$32.9 million compared with Adjusted EBITDA of US$37.2 million in the 4Q14. For the year ended 31 December 2015, Adjusted EBITDA was US$27.8 million, compared to US$23.7 million for 2014. Adjusted EBITDA for the fourth quarter and year ended 31 December 2015 and 2014 included VETC revenue of US$31.0 million and US$28.4 million, respectively. Adjusted EBITDA for the fourth quarter and year ended 31 December 2014 also included a US$12.0 million gain from the sale of a subsidiary. Adjusted EBITDA is described below and reconciled to the GAAP measure net loss attributable to Clean Energy Fuels Corp.

Non-GAAP income per share for the 4Q15 was US$0.08, compared to non-GAAP income per share for the 4Q14 of US$0.11. For the year ended 31 December 2015, non-GAAP loss per share was US$0.75, compared to non-GAAP loss per share of US$0.76 for 2014. Non-GAAP income (loss) per share for the fourth quarter and year ended 31 December 2015 and 2014 included VETC revenue and 2014 included the gain from the sale of a subsidiary as mentioned above. Non-GAAP income (loss) per share is described below and reconciled to the GAAP measure net loss attributable to Clean Energy Fuels Corp.

On a GAAP basis, net loss for the 4Q15 was US$50.0 million or US$0.54 per share, which included a non-cash interest charge of US$54.9 million related to the deferred debt issuance costs associated with the company’s termination of its credit agreement with GE Capital EFS Financing (Debt Issuance Costs). Net income on a GAAP basis for the 4Q14 was US$1.3 million, or US$0.01 per share, which included a charge of US$4.7 million related to a compressor project in Australia (IMW Australia Project) and the previously mentioned gain of US$12 million from the sale of a subsidiary.

On a GAAP basis, net loss for the year ended 31 December 2015 was US$134.2 million, or US$1.47 per share, which included the US$54.9 million non-cash Debt Issuance Costs charge mentioned above. Net loss on a GAAP basis for the year ended 31 December 2014 was US$89.7 million, or US$0.96 per share, which included a US$4.8 million intangible asset impairment charge related to a service contract that was not renewed (IMW Impairment) and the previously mentioned US$4.7 million IMW Australia Project charge and gain of US$12.0 million from the sale of a subsidiary.

Subsequent to 31 December 2015, the company paid US$16.8 million in cash to repurchase US$32.5 million of the US$250.0 million (5.25%) notes due 2018, plus accrued interest. Additionally, the company paid US$61.8 million in cash as a prepayment of US$60.0 million of the US$145.0 million outstanding principal amount of convertible notes due August 2016, plus accrued interest.


Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/04032016/clean-energy-solutions-releases-results-for-4q15-2668/


 

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