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CUPERTINO - Aemetis, Inc. (NASDAQ: AMTX), a global company specializing in renewable natural gas and biofuels with a market capitalization of $73 million, announced today that its Indian subsidiary, Universal Biofuels, has initiated the shipment of biodiesel to meet multiple orders totaling more than 33,000 kiloliters. According to InvestingPro data, the company has achieved impressive revenue growth of 43% over the last twelve months, though it faces operational challenges with weak profit margins. These orders, placed by government-owned Oil Marketing Companies (OMCs) in India, are valued at an aggregate of $31 million and are scheduled for delivery over the next three months. With the company’s next earnings report due on May 8, InvestingPro subscribers can access detailed financial analysis and 14 additional expert tips to better understand the company’s performance potential. The Pro Research Report available for this stock provides comprehensive insights into what matters most for informed investment decisions.
The commencement of these shipments aligns with the Indian government’s objective to increase the biodiesel blend in fuels from 1% to 5%. This shift represents a substantial increase, with a 5% blend equating to approximately 1.2 billion gallons. Such a move is expected to contribute significantly to India’s biofuel market expansion and support the nation’s efforts to reduce petroleum gasoline imports.
Eric McAfee, Chairman and CEO of Aemetis, expressed satisfaction with the Indian government’s growing commitment to biofuels, highlighting the ongoing efforts to achieve a 20% ethanol blend and setting new targets for a 30% blend. McAfee stated, "We began our biodiesel shipments today from inventory to quickly ramp up to $10 million per month of shipments and fulfill the $31 million of new orders from OMCs for biodiesel over the next three months."
Universal Biofuels, a leading biodiesel producer in India for over 17 years, has recently increased its production capacity. Following a plant upgrade and maintenance period, the company expanded its capacity from 60 million gallons to 80 million gallons annually. However, InvestingPro data indicates the company is currently trading near its 52-week low of $1.28, with significant debt obligations and rapid cash burn requiring careful monitoring. The stock’s current Fair Value assessment and detailed financial health metrics are available exclusively to InvestingPro subscribers. This growth is part of a broader business plan that includes further expansion and a potential Initial Public Offering (IPO), subject to favorable stock market conditions.
In the previous fiscal year ending September 2024, Universal Biofuels completed $112 million in biodiesel and glycerin shipments, including deliveries to the three OMCs under a cost-plus contract. The subsidiary’s proprietary process enables the production of biodiesel from waste and byproducts, resulting in biofuels with lower carbon intensity and reduced costs.
Aemetis’ broader operations include a biogas digester network and pipeline system in California, converting dairy waste into renewable natural gas, and an ethanol production facility in the state’s Central Valley. The company is also developing a sustainable aviation fuel and renewable diesel biorefinery and a carbon sequestration project in California.
This news is based on a press release statement from Aemetis, Inc. and does not include any forward-looking statements or assumptions from the company.
In other recent news, Aemetis Inc. reported a significant 43% increase in annual revenue for 2024, reaching $268 million. Despite this growth, the company faced a widening net loss, which rose to $87.5 million compared to $46.4 million in the previous year. Aemetis also announced that its Indian subsidiary, Universal Biofuels, secured $31 million in biodiesel orders from government-owned Oil Marketing Companies, aligning with India’s biodiesel blending targets. Additionally, the Stanislaus County Board of Supervisors approved an extension of the C-PACE program, which could aid Aemetis in financing several energy projects. The company is also preparing for an IPO of its India Biodiesel segment, anticipated by late 2025. Aemetis aims to expand its biogas production capacity significantly by 2026 and is advancing projects in sustainable aviation fuel. These developments indicate ongoing efforts by Aemetis to enhance its renewable energy capabilities and financial health.
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