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9606  
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Title
REG reports Q4, full-year financial results for 2017  
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Renewable Energy Group Inc.  
Summary
For the full year, biodiesel producer Renewable Energy Group sold 19.6 million more gallons and revenue increased by 6 percent compared to 2016. Adjusted net income increased by 313 percent, and adjusted EBITDA increased by 125 percent over 2016.  
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Renewable Energy Group Inc. announced its financial results for the fourth quarter and full year ended Dec. 31.

On Feb. 9, the Biodiesel Mixture Excise Tax Credit (“BTC”) was retroactively reinstated for the 2017 calendar year, although because the reinstatement occurred after year-end, the net benefit of the reinstatement will be recognized in REG’s GAAP financial statements for the quarter ending March 31. Because this credit relates to its 2017 operations, the presentation of adjusted net income and adjusted EBITDA for 2017 reflects the allocation of the net benefit of the reinstatement to each of the four quarters of 2017 based upon gallons sold in the quarter.

Revenues for the fourth quarter were $577.3 million on 152.8 million gallons sold. Net loss was $17 million. Adjusted net income was $78.2 million and adjusted EBITDA was $58.9 million. Total gallons sold decreased by 2 percent compared to the fourth quarter of 2016.

For the full year, revenues were $2.2 billion on 586.7 million gallons sold. Net loss was $79.1 million, adjusted net income was $206.8 million and adjusted EBITDA was $230.2 million. For the full year, REG sold 19.6 million more gallons and revenue increased by 6 percent compared to 2016. Adjusted net income increased by 313 percent, and adjusted EBITDA increased by 125 percent compared to 2016. The decrease in net income in 2017 is primarily attributed to the absence of the BTC and a $49.9 million impairment charge for property, plant and equipment, partially offset by higher margins from operations. The increase in adjusted net income and adjusted EBITDA is primarily attributable to the significant increase in renewable diesel gallons sold and higher margins from our biodiesel operations.

“We achieved a significant step change in our business performance with $230 million of adjusted EBITDA,” said Randy Howard, president and CEO. “Revenues for the full year exceeded $2 billion and we set new records for adjusted EBITDA as well as gallons produced and sold in a year. Our 2017 adjusted EBITDA demonstrated the capability of REG’s business model to generate cash, reflecting our renewable diesel capacity and multifeedstock strategy. Our fleet ran at 90 percent of nameplate capacity last year, and the strong performance at our renewable diesel biorefinery at Geismar, Louisiana, reinforces our commitment to that proven technology.”

For more detailed information, including financial tables summarizing REG’s fourth-quarter and full-year results, click here.

 
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Newsletter Summary
For the full year, biodiesel producer Renewable Energy Group sold 19.6 million more gallons and revenue increased by 6 percent compared to 2016. Adjusted net income increased by 313 percent, and adjusted EBITDA increased by 125 percent over 2016.  
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Posted On
2018-03-08 18:15:46  
Post Id
2516300