Vertex Energy Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Vertex Energy, Inc. Reports Second Quarter 2024 Financial Results
Vertex Energy, Inc. (NASDAQ: VTNR), a leading specialty refiner and marketer of high-quality refined and renewable fuels, announced its financial and operational results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|
| Total Revenue | Not Provided | Not Provided | Not Provided | Not Provided | $726.32M (Q2) |
| Net Loss | ($53.8M) | ($17.7M) | Not Provided | 204% Increase | Not Provided |
| Earnings Per Share | ($0.58) | ($0.19) | Not Provided | 205% Increase | ($0.13) (Q2) |
| Adjusted EBITDA | ($22.4M) | $18.6M | Not Provided | -220% | Not Provided |
Interpretation: Vertex Energy faced a challenging second quarter, reporting a net loss of $53.8 million, which is significantly higher than the net loss in Q1 2024. The substantial decrease in Adjusted EBITDA, driven by a 28% decline in crack spreads, highlights the volatile market conditions affecting the company’s profitability.
Revenue Performance Across Major Segments
| Segment | Q2 2024 Revenue | Q1 2024 Revenue | Previous Guidance | QoQ Comparison | Interpretation |
|---|---|---|---|---|---|
| Mobile Refinery (Conventional) | $6.4M Gross Profit | $37.5M Gross Profit | In Line | -83% | Significant decline due to reduced crack spreads |
| Mobile Refinery (Renewable) | ($11.8M) Gross Loss | Not Provided | Not Provided | Not Available | Losses as operations shifted from renewables to conventional fuels |
Interpretation: The Mobile Refinery’s conventional operations generated significantly lower gross profits compared to the previous quarter. The renewable segment incurred a loss as the company transitioned from renewable diesel to conventional fuels.
Operational Data
| Metric | Q2 2024 | Comment |
|---|---|---|
| Conventional Throughput (Mobile) | 67,758 bpd | Met management's expectations |
| Renewable Throughput | 3,092 bpd | Reflects the final phase of renewable fuel production |
| Finished Light Products Yield | 64% | Consistent with Q1 2024 |
| Fuel Gross Margin (Conventional) | $5.67/barrel | Decline from Q1 2024 ($12.63/barrel) |
| Fuel Gross Margin (Renewable) | $16.08/barrel |
Comments from Company Officers
Benjamin P. Cowart, CEO: "We continued to demonstrate operational reliability for conventional refining. However, a difficult crack spread environment drove our Adjusted EBITDA lower. The strategic shift to conventional fuels at our Mobile Refinery aims to navigate through recent lower crack spreads and align with our strategic priorities for 2024 and 2025."
Seth Bullock, Chief Restructuring Officer: "I am focused on assisting Vertex in managing through a difficult macro-economic environment and improving liquidity and performance."
Dividends and Share Repurchase Program
There were no announcements regarding dividends or share repurchase programs.
Forward Guidance
Management did not provide specific forward guidance but emphasized the company's ongoing efforts to secure additional financing and optimize operations to improve liquidity and margins.
Stock Price Movement
Following the earnings release, Vertex Energy’s stock price fell by approximately 9.2%.
Vertex Energy's second quarter 2024 financial performance reveals significant challenges, primarily driven by unfavorable market conditions affecting crack spreads. Despite these obstacles, the company's strategic shift towards conventional fuel production and liquidity management efforts are poised to support future improvements. The company's stock responded negatively to the earnings report, reflecting investor concerns.
