AMES, Iowa — Renewable Energy Group, Inc. (NASDAQ:REGI) on Thursday announced its financial results for the quarter ended March 31, 2013.
First quarter 2013 adjusted EBITDA was $22.0 million after adjusting for the $57.4 million related to the 2012 retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit, commonly referred to as the blenders tax credit (BTC).
The first quarter 2012 adjusted EBITDA was $12.7 million before including the allocation of the 2012 retroactive BTC of $10.4 million. REG sold 38.9 million gallons of biodiesel in the first quarter, an increase of 14 percent compared to the same period in 2012.
“This was our strongest first quarter ever for production and gallons sold,” said Daniel J. Oh, president and chief executive officer.
“Biodiesel demand is being driven by a number of positive factors including the 2013 RVO and biodiesel’s ability to meet certain advanced biofuel targets that are not being fulfilled by imported sugar cane ethanol.”
Oh added, “Demand also benefited from the reinstated tax credit, and new counter-seasonal markets such as Northeast heating oil. We are optimistic about industry conditions for the months ahead, and are taking concrete actions to capitalize on them.”
During the quarter, REG positioned itself to capitalize on strong demand opportunities. Biodiesel RINs can be used to fulfill the advanced biofuel and renewable fuel (corn ethanol) renewable volume obligations (RVO) in addition to biomass based diesel volumes. In the future, strong demand is expected from petroleum refiners and importers using biodiesel to fulfill advanced biofuels targets.
As a result of ongoing yield and throughput improvement programs across the company’s manufacturing sites, REG was able to produce 39.9 million gallons of biodiesel, compared to 38.5 million gallons in the same period in 2012. The company built inventory of its higher cloud point biodiesel in anticipation of warmer weather sales during 2013.
The company added another northeast U.S. distribution point in Rochester, New York to meet extended winter heating oil blending demand. The company remains on track to complete its lower cost feedstock upgrade at the Albert Lea, Minnesota facility in Q2. REG’s New Boston, Texas plant is serving as a terminal location while repair activity is under way with biodiesel production planned to begin in Q2.