Movers and SHAKERS
Another Quarterly Loss But Year of Progress
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
EBITDA losses continued in 4Q2021. Given the early stage of development of the renewable fuels concept, it isn't surprising that EBITDA was negative $10.9 million due to limited revenue and continuing corporate/development costs. We expect negative EBITDA to continue into at least late next year. Gross losses of $4.3 million were slightly higher than $1.4 million last year due to operating expenses of $2.8 million, but total development and overhead costs dropped $4.4 million to $12.2 million.
Funding is visible into next year, but development goal of 1 BGPY by 2030 likely to require added capital. Given 4Q2021 cash of $476 million and the scheduled financial closing of Net Zero One in 1Q2023, we don't believe that added capital is required right now. Current cash creates a funding fairway into late 2022/early 2023, and we expect the recently refreshed $500 million ATM program will not ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.