Vertex Energy Stock Skyrockets After Q4 Results; Expects To Close Mobile Refinery Deal As Planned

Vertex Energy Inc VTNR reported fourth-quarter revenue growth of 82.5% year-over-year to $31.79 million, beating the consensus of $29.37 million.
Q4 Adjusted net income recovered to $4.64 million from a loss of $(2.74) million in 4Q20.
The gross margin declined by 130 bps to 1%. The company reported an operating loss of $(7.46) million, compared to $(1.83) million in 4Q20.
Adjusted EBITDA totaled $9.5 million, compared to $(0.414) million a year ago, and the margin was 29.9%.
Vertex Energy generated cash from operating activities of $9.68 million in FY21. Free cash flow was $5.44 million.
The company noted Q4 results benefited from elevated utilization rates at the Marrero and Heartland refineries, improved refined product margins, together with continued growth in UMO collections.
In 1Q22, the company reached several key financing and commercial milestones ahead of a planned closing on the Mobile Refinery acquisition.
The company expects to begin producing renewable diesel at the Mobile refinery by year-end 2022, with renewable diesel production ramping to 14,000 barrels per day by mid-year 2023.
"We currently expect to close on our acquisition of the Mobile Refinery over the coming weeks, as planned," said CEO Benjamin Cowart.
As of December 31, 2021, Vertex held total cash available of $36 million and $100 million of restricted cash.
Price Action: VTNR shares are trading higher by 26.3% at $7.79 on the last check Tuesday.