Higher than average corn costs for the region pushed the company to reduce its production of ethanol for the quarter.
Gevo (NASDAQ:GEVO), a low-emissions fuel company that develops ethanol and hydrocarbon, announced that revenues for the quarter have dropped as it contends with a challenging commodities environment. Despite this year-over-year decline, hydrocarbon sales ticked up compared to the same time last year to US$600,000 as its South Hampton Facility received higher volumes for production.
As quoted in the press release:
Commenting on the third quarter of 2019 and recent corporate events, Dr. Patrick R. Gruber, Gevo’s Chief Executive Officer, said, “We continued to make progress on our plans. We have over 60MGPY of jet fuel and isooctane in contract negotiation, and well over 120MGPY in total under discussion. We only need to secure 5MGPY more to achieve our threshold offtake of 10MGPY which should allow us to be able to build a larger plant with acceptable economies of scale.”
Dr. Gruber continued, “We expect to refinance our secured promissory note in the 4th Quarter of 2019 or in early 2020. We are receiving a lot of interest from project financiers both for the build out of our Luverne Facility and our biogas business. We have received term sheets from project equity funds and strategic investors, and are evaluating the options and negotiating terms. We have a number of the pieces we need on the table, and we need to put them together.”