Clean Energy Fuels Corp. (Clean Energy or the company) has announced operating results for the first quarter ended 31 March 2017. The company delivered 85.1 million gal. in the 1Q17, a 9.8% increase from 77.5 million gal. delivered in the 1Q16.
Revenue for the 1Q17 was US$89.5 million, a 6.6% decrease from US$95.8 million of revenue for the 1Q16. This decrease was primarily due to the expiration of excise tax credits for alternative fuels (VETC) as of 31 December 2016, resulting in a US$6.4 million decrease in revenue for in the 1Q17 compared to the same period in 2016. Station construction revenue decreased between periods as a result of product mix favouring project upgrades for existing customers in the 1Q17 compared to more standalone station builds in the same period in 2016. Compressor sales declined in the 1Q17 compared to the same period in 2016 due to continued low global demand. Revenue from gallons delivered (volume-related revenue) increased in the 1Q17 compared to the same period in 2016 due to volume growth.
Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated, "The first quarter of the year was very significant. Not only did we grow volumes and strengthen our balance sheet with additional debt reductions, but the deal with BP to buy our RNG production assets and put in place a long-term supply agreement, positions us very well to continue to grow our Redeem business. The demand for Redeem renewable natural gas has grown from a niche product in California to a national offering that customers want because it’s a great way to achieve sustainability goals at an affordable cost."
On a GAAP basis, net income for the 1Q17 was US$61.1 million, or US$0.40 per share, compared to net income of US$2.8 million, or US$0.03 per share, for the 1Q16. The 1Q17 included gains of US$3.2 million and US$70.6 million, respectively, from the company's repurchase of a portion of its outstanding debt at a discount to the face amount and the sale of certain assets related to the upstream production portion of the company's RNG business to BP (the asset sale). The 1Q16 included VETC revenue of US$6.4 million and a gain of US$15.9 million from the debt repurchase at a discount to the face amount.
Non-GAAP income per share and Adjusted EBITDA for the 1Q017 was US$0.41 per share and US$80.7 million, respectively, which included gains from the debt repurchases at a discount to the face amount and the asset sale. Non-GAAP income per share and Adjusted EBITDA for the 1Q16 was US$0.05 per share and US$29.7 million, respectively, which included VETC revenue and gains from the debt reduction.
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/05052017/clean-energy-reports-1q17-results/