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CUPERTINO - Aemetis, Inc. (NASDAQ: AMTX), a global renewable energy company with a market capitalization of $79.45 million, announced that its Indian subsidiary, Universal Biofuels, has received orders totaling $31 million to supply over 33,000 kiloliters of biodiesel. The orders, placed by three government-owned Oil Marketing Companies (OMCs), are scheduled for delivery in May, June, and July, aligning with India’s initiative to increase biodiesel blend in fuel from 1% to 5%. Despite posting strong revenue growth of 43.34% in the last twelve months, InvestingPro analysis indicates the company faces significant financial challenges.
Sanjeev Duggal, CEO of Universal Biofuels, expressed confidence in the government’s continued support for the biodiesel industry to address climate issues. Eric McAfee, Chairman and CEO of Aemetis, highlighted the company’s consistent performance in fulfilling contracts with OMCs over the years, emphasizing the importance of supporting India’s biodiesel blending target, which exceeds 1.2 billion gallons annually.
India recently achieved a 20% ethanol blend in gasoline and is now targeting a 30% blend, aiming to boost ethanol production, increase farmers’ income, and reduce petroleum imports. Universal Biofuels, one of India’s largest biodiesel producers, has expanded its Kakinada plant’s capacity to 80 million gallons per year following a recent upgrade. The company plans further expansion to other locations and diversification into biogas production in 2025.
Universal Biofuels is also preparing for an IPO in India, expected to be completed by late 2025, subject to favorable market conditions. According to InvestingPro data, Aemetis currently operates with an overall Financial Health Score of 1.3 (labeled as WEAK), with negative EBITDA of -$32.03 million. The subsidiary reported $112 million in biodiesel and glycerine shipments for the year ended September 2024, including deliveries to OMCs under a cost-plus contract. The upcoming biodiesel shipments to OMCs are set to commence in early May.
Aemetis, headquartered in Cupertino, California, specializes in renewable natural gas and renewable fuels, focusing on replacing petroleum products and reducing greenhouse gas emissions. The company operates a biogas digester network in California, an ethanol production facility in the Central Valley, and a biodiesel production facility in India. Aemetis is also developing a sustainable aviation fuel plant and a CO2 sequestration project in California. With a debt-to-capital ratio of 0.86 and current stock price of $1.49, investors can access comprehensive analysis and 13 additional key insights through InvestingPro’s detailed research reports.
This news is based on a press release statement from Aemetis, Inc.
In other recent news, Aemetis Inc. reported a 43% increase in annual revenue for 2024, reaching $268 million, while also experiencing a significant widening of its net loss to $87.5 million from $46.4 million in 2023. The company highlighted its ongoing focus on biogas and ethanol projects as key drivers of revenue growth. Aemetis is also preparing for an IPO of its India Biodiesel segment, anticipated in late 2025 or early 2026, which could potentially expand its market presence. The company is targeting significant expansion in its biogas production, aiming to reach 1 million MMBtu by 2026. In a strategic move, Aemetis plans to utilize the Stanislaus County C-PACE program for financing several projects, including the Riverbank Sustainable Aviation Fuel plant. Recent developments also include the approval of the updated low carbon fuel standard in California, which could benefit Aemetis’ low-carbon fuel initiatives. The company is advancing in its plans for sustainable aviation fuel and renewable diesel production, with regulatory approvals being key to future success.
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