Renewable Energy Group’s Biomass Business Kept Growing in 2014

published: 2015-03-04 17:14 | editor: | category: News

Renewable Energy Group (REG) announced its financial results for the fourth quarter and full year ended December 31, 2014. For the fourth quarter of 2014, REG increased gallons sold of biomass-based diesel, which includes biodiesel and renewable hydrocarbon diesel (RHD), by 2% compared to the fourth quarter of 2013. Revenue decreased by 14% while Adjusted EBITDA decreased by 6% in the fourth quarter of 2014 compared to the same period in 2013.

For the full year 2014, REG sold 11% more gallons of biomass-based diesel, although revenue and Adjusted EBITDA decreased by 15% and 27%, respectively, compared to 2013, as a result of lower selling prices.

“This past year we delivered solid results despite a rapidly declining energy market and market uncertainty,” said Daniel J. Oh, President and Chief Executive Officer. “Our business model has enabled us to grow consistently, invest in adjacent opportunities, maneuver through market challenges and do so profitably. Our business is proving itself to be durable, reliable and profitable.”

Oh continued, “In 2014, we expanded our product lines by entering the renewable hydrocarbon diesel and renewable chemical markets, we extended our geographic reach and asset base into Europe with our Petrotec investment and we improved distribution capabilities with the establishment of our Energy Services division. Looking forward, we continue to see accretive investment and growth opportunities.”

Highlights of Fourth Quarter 2014 Results:

  • 74 million gallons of biomass-based diesel sold
  • Revenue of $337.6 million
  • Net income of $69.3 million
  • Adjusted EBITDA of $34.0 million
  • Retroactive reinstatement of biodiesel tax credit for 2014
  • Commenced production and sales of renewable hydrocarbon diesel

 

Highlights of Full Year 2014 Results:

  • 287 million gallons of biomass-based diesel sold
  • Full year 2014 revenue of $1.27 billion
  • Net income of $82.5 million
  • Adjusted EBITDA of $107.8 million
  • Production capacity increased to 332 million gallons/year
  • Expanded product lines into renewable hydrocarbon diesel and renewable chemicals
  • Expanded geographically into Europe

To read the full report, please visit: Renewable Energy Group Reports Fourth Quarter and Full Year 2014 Financial Results

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