HOUSTON - Vertex Energy, Inc. (NASDAQ:VTNR), a key player in the specialty refining and marketing of high-quality refined products, reported its financial outcomes for the first quarter of 2024, missing analyst expectations on both earnings and revenue fronts.
The company posted an adjusted loss per share of -$0.19, which was $0.04 short of the -$0.15 consensus estimate. Revenue for the quarter was reported at $657.71 million, falling below the anticipated $675.44 million.
The company's stock experienced a slight decline of 1.45% following the announcement.
Vertex (NASDAQ:VRTX) Energy's CEO, Benjamin P. Cowart, commented on the quarter's performance, highlighting the improved crack spread environment which contributed to an over $50 million increase in Adjusted EBITDA compared to the previous quarter. Cowart also detailed the company's strategic shift in response to macroeconomic challenges, pausing renewable diesel business to pivot towards conventional fuel production from the hydrocracker unit. This decision is expected to optimize returns and enhance the unit's long-term value potential.
The Mobile Refinery's conventional operations generated a gross profit of $37.5 million with a fuel gross margin of $73.6 million, or $12.63 per barrel, a significant increase from the fourth quarter of 2023. In contrast, the renewable diesel facility reported a gross loss of $10.5 million, with a fuel gross margin of $3.8 million, or $10.29 per barrel.
Looking ahead, Vertex Energy aims to focus on increasing cash position, reducing operating costs, and improving margins. The company's strategic redirection to optimize hydrocracker production is a step towards achieving these objectives for the remainder of 2024 and into 2025.
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