Sales of hydrocarbon products jumped to $900,000 in the three months ended June 30, up from $100,000 in the same period in 2019. Gevo’s hydrocarbon revenue consists of sales of alcohol-to-jet fuel, isooctane and isooctene.
Overall, revenue declined to $1 million from $5.1 million in the period, due primarily to the termination of ethanol and distiller grain production at its Minnesota facility in the wake of the coronavirus.
Despite the virus-related difficulty, the low-carbon fuel company trimmed its adjusted loss to $3.1 million, $0.40 per share in the quarter, compared to $4.8 million, $0.60 per share, a year earlier.
During the quarter, Gevo hired Citigroup Global Markets Inc to secure financing for its operations, especially the expansion of its production capabilities to supply renewable isooctane and sustainable aviation jet fuel to Delta Air Lines Inc (NYSE:DAL) and HCS Group GmbH.
“The process with Citigroup, whereby we are working to raise the money needed to build plants ‘off balance sheet’ is progressing nicely and Gevo is advancing discussions with several potential equity partners and lenders,” CEO Patrick Gruber said in a statement. “We expect to announce at least two new significant commercial agreements in the near future. Overall, we continue to make good progress developing our business, even in spite of COVID-19.”
Gevo said it will hold a conference call at 4:30 pm ET to discuss the results, led by Gruber and other members of the executive team. Those interested in joining can dial in at 1 (833) 729-4776 in the US and 1 (830) 213-7701 internationally and use the access code 3083616 or watch online here.
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