2Q22 Results: SAF Sales Agreements Worth $2.1 Billion Signed with Multiple Airlines; Company Strengthens Balance Sheet with Equity Finance
|52 Week Range||$2.18-$8.27|
|Avg. Daily Vol. (30 day)||10,990,000|
|Shares Out (MM)||201.75|
|Market Cap (MM)||$651.66|
|Enterprise Value ($MM)||$408.26|
|Revenue TTM (MM)||$0.52|
|Fiscal Year End||December|
- On August 8, 2022, Gevo announced its 2Q22 earnings results. The company recorded $0.1 million in revenue compared with $0.3 million in 2Q21. The decrease was due to the Luverne facility being run on an as-needed basis for the company’s development initiatives.
- The company registered a gross loss of $3.6 million compared with $1.2 million in 2Q21. Net loss was $13.2 million or $0.06 per share versus $18.3 million or $0.09 per share in 2Q21.
- Gevo has more than 350 million gallons per year (MGPY) of financeable SAF and hydrocarbon fuel supply agreements, representing ~$2.1 billion in expected revenue per year, inclusive of the value of environmental benefits.
- On the back of the airline industry’s commitment to low-carbon SAF, Aer Lingus (6.3 MGPY) and Oneworld alliance members, including Alaska Airlines (37 MGPY), American Airlines (100 MGPY), Finnair (7 MGPY), and Japan Airlines (5.3 MGPY), have all inked SAF sales agreements for five years from Gevo’s future commercial operations.
- The RNG project of Gevo continues to ramp up to its nominal capacity of 355,000 MMBtu per day. All three dairies produce biogas, which is improved and introduced into the sales pipeline. Gevo anticipates that the RNG project will earn $16-22 million in EBITDA annually by 2023.
- Cash position (restricted cash and marketable securities) was $546.8 million, up from $429.6 million in 1Q22. The increase was mainly due to a registered direct offering that raised $139 million for capital projects, operating capital, and general business reasons.
- On July 25, 2022, Gevo finalized the purchase of 245 acres near Lake Preston, South Dakota, for its Net-Zero 1 production facility. The company anticipates the project will be fully operational in 2025, with an annual EBITDA of $150-200 million.
- Our prior content on Gevo can be accessed here.
On August 8, 2022, Gevo announced its 2Q22 earnings results. The company recorded $0.1 million in revenue compared with $0.3 million in 2Q21. The decrease was due to the Luverne facility being run on an as-needed basis for the company’s development initiatives.
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.
WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...