Vertex Energy Misses Q2 EPS Estimate On Lower Mobile Refinery Margins

Vertex Energy Inc VTNR reported a Q2 FY23 revenue of $734.89 million, beating the consensus of $707.74 million.

EPS loss from continuing operations was $(1.07), missing the consensus of $(0.28). 

Total EPS loss was $(1.03) versus $(0.99) last year.

Adjusted EBITDA loss stood at $(34.2) million vs. adjusted EBITDA of $71.3 million a year ago. 

The Mobile Refinery operations generated a fuel gross margin of $52.7 million, which declined from $103.8 million a year ago on lower margins for refined products, one-time expenses of around $20 million related to the repair and start-up procedures at the renewable diesel facility.

Total throughput at the Mobile Refinery stood at 78,820 bpd in Q2, including 76,330 bpd of conventional and 2,490 bpd of renewable throughput, respectively.

As of June 30, 2023, operating cash outflow came in at $(111.4) million, and cash and cash equivalents and restricted cash stood at $52.1 million.

"While short-term profitability on the conventional fuels refining business was negatively impacted by a combination of deterioration in market conditions and the added expense associated with the start-up of our renewable diesel facility, we successfully achieved several important strategic milestones through establishing RD production, accelerating our feedstock strategy, and improving balance sheet efficiency, which we believe will help drive greater long-term shareholder value for the company," said Benjamin P. Cowart, President and CEO.

Q3 Outlook: VTNR expects Mobile Refinery Conventional Throughput Volume of 74-77 Mbpd. It expects a capital expenditure of $20 million-$25 million.

Also Read: Analyst Downgrades Vertex Energy: Exploring The Uncertain Forecast And Commodity Environment

Price Action: VTNR shares are trading lower by 7.2% at $4.57 on the last check Wednesday.