h3 Vertex Energy Inc Reports Second Quarter 2024 Financial Resultsh3p Vertex Energy Inc NASDAQVTNR a
Intellectia.AI1970-01-01
Vertex Energy, Inc. Reports Second Quarter 2024 Financial Results
Vertex Energy, Inc. (NASDAQ:VTNR), a leading specialty refiner and marketer of refined products and renewable fuels, announced its financial results for the second quarter of 2024 on August 8, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Wall Street Consensus |
|---|---|---|---|
| Net Loss | $(53.8)M | $(17.7)M | Not provided |
| Earnings Per Share | $(0.58) | $(0.19) | $(0.13) |
| Adjusted EBITDA | $(22.4)M | $18.6M | Not provided |
Interpretation: Vertex Energy reported a net loss of $53.8 million for Q2 2024, widening from a loss of $17.7 million in the previous quarter. Negative earnings per share (EPS) of $(0.58) significantly missed the Wall Street consensus estimate of $(0.13). The company’s adjusted EBITDA turned negative at $(22.4) million, indicating a substantial decline in operational performance, primarily due to a 28% decrease in crack spreads.
Revenue Performance Across Major Segments
| Segment | Q2 2024 | Q1 2024 |
|---|---|---|
| Mobile Refinery Throughput (bpd) | 67,758 | Not provided |
| Conventional Gross Profit | $6.4M | $37.5M |
| Conventional Fuel Gross Margin | $35.0M ($5.67/bbl) | $73.6M ($12.63/bbl) |
| Renewable Throughput (bpd) | 3,092 | Not provided |
| Renewable Gross Loss | $(11.8)M | Not provided |
| Renewable Fuel Gross Margin | $4.5M ($16.08/bbl) | Not provided |
Interpretation: The Mobile Refinery’s conventional operations produced a gross profit of $6.4 million in Q2 2024, significantly down from $37.5 million in Q1 2024 due to lower crack spreads. The renewable segment posted a gross loss of $(11.8) million. This decline in profitability was primarily driven by unfavorable market conditions affecting both segments.
Comments from Company Officers
Mr. Benjamin P. Cowart, Vertex's Chief Executive Officer, stated, "We continued to demonstrate operational reliability for conventional refining and safety performance. The declining crack spread environment led to lower Adjusted EBITDA. Our strategy involves transitioning the hydrocracking unit to conventional fuels to improve margins in the second half of 2024 and into 2025."
Dividends or Share Repurchase Program
No dividends or share repurchase programs were announced.
Forward Guidance
Vertex Energy did not provide specific forward guidance figures but indicated their focus on managing liquidity, reducing operating costs, and improving margins.
Stock Price Movement
Post-earnings release, Vertex Energy’s stock price declined by approximately 9.06%.
In summary, Vertex Energy faced a challenging second quarter with significant losses primarily due to plummeting crack spreads. The company has shifted focus towards optimizing its conventional fuel segment to stabilize operations and improve financial performance in upcoming quarters.
Impressive Revenue Growth in Third Quarter 2024 51Talk Q3 2024 Earnings Report51Talk Online Educat
Costco Wholesale Corporation Reports First Quarter Financial Results
Quanex Building Products Corporation Reports Q4 and Fiscal 2024 Financial Results
Share