Vertex Energy Inc VTNR updated its financial and operational outlook for Q3 2023.
The company sees Q3 throughput volumes at its Mobile, Alabama Refinery of about 80,000 bpd, surpassing its prior guidance of 74,000 bpd-77,000 bpd. This reflects a continued focus on boosting the conventional feedstock procurement program started in Q2.
Also, capacity utilization forecast stands at 107%, better than its prior outlook of 99% - 103%.
Vertex expects finished fuel products to account for 65% to 67% of total production volumes for Q3, ahead of its guided range of 59%-63%, aided by successful implementation of a facility-wide yield optimization initiative.
The company projects Q3 capital expenditure of $21 million-$23 million, vs. earlier outlook of $20 million-$25 million.
"Our strong preliminary third quarter operational results reflect the impact of facility optimization initiatives. Our conventional feedstock procurement strategy and yield optimization efforts extracted substantial value for conventional finished products while our near-term focus on the optimization of different renewable feedstock blends is steadily progressing according to plan," commented Benjamin P. Cowart, President and CEO.
About its renewable diesel feedstock supply strategy, Vertex expects to accelerate the assessment and pathway approval process that began in Q2 2023.
As of September 30, 2023, the company completed its internal quality approval process for a combination of eight different feedstock blends and is currently waiting for evaluation and approval by the state of California. Vertex sees renewable diesel production rates averaging about 5,200 bpd in Q3.
The company will release Q3 FY23 results on November 7, 2023.
Price Action: VTNR shares are trading higher by 8.9% at $4.59 on the last check Friday.
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