Renewable Energy Group Revises Outlook for Second Quarter 2020 - Seite 3

 

1.4

 

3.9

 

3.9

 

Other

(7.6

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(7.8

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(7.3

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(7.5

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Adjusted EBITDA

(12.0

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(2.0

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78.0

 

88.0

 

About Renewable Energy Group

Renewable Energy Group, Inc. (Nasdaq: REGI) is leading the energy industry's transition to sustainability by transforming renewable resources into high-quality, cleaner fuels. REG is an international producer of cleaner fuels and North America’s largest producer of biodiesel. REG solutions are alternatives for petroleum diesel and produce significantly lower carbon emissions. REG utilizes an integrated procurement, distribution and logistics network to operate 13 biorefineries in the U.S. and Europe. In 2019, REG produced 495 million gallons of cleaner fuel delivering over 4.2 million metric tons of carbon reduction. REG is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.

APPENDIX TO SECOND QUARTER 2020 REVISED OUTLOOK RELEASE

1. The guidance model consulted when preparing the Company’s April 30 estimate had forecast the Biodiesel Mixture Excise Tax Credit (“BTC”)—which was reinstated late in December 2019 after having lapsed for 2018 and 2019—using formulas that overestimated REG’s BTC revenue. The guidance model also overstated biodiesel gross margins owing to a manual data entry error resulting from the use of different software tools to accommodate the work-from-home environment during the COVID-19 pandemic. Although the model is not the only input used to estimate the Company’s projected Adjusted EBITDA, these errors in the aggregate resulted in the Adjusted EBITDA model output being overstated by approximately $43 million.
2. The heating oil-to-soybean oil spread, or HOBO, dropped to lows in April and May but is showing signs of recovery in June. (Click on the link to Exhibit I here)
3. Gallons sold in April and May exceeded the original guidance by 7.2 million. The Company expects gallons sold in the second quarter to modestly exceed the previously stated forecast of 155 to 175 million gallons.
4. The original guidance included $8 million of risk management gains at that time. The Company has since estimated risk management losses of $8 million quarter-to-date through June 22, 2020.
5. Shipment timing and changes in risk management from movement in ULSD and feedstock prices, among other factors, could further affect Adjusted EBITDA between now and the end of the quarter.