Gevo, Inc. (NASDAQ:GEVO) posted that revenue for 3Q2016 came at $6.9 million against $8 million in the comparable period in FY2015. Revenues derived at its Luverne plant came at $6.4 million, a decline of nearly $1.2 million from the comparable period in FY2015. It was mainly an outcome of lower ethanol production, distiller grain prices and ethanol prices in 3Q2016 versus the comparable period in 2015.
In 3Q2016, hydrocarbon revenue came at $0.5 million, up $0.3 million compared to the same period, a year earlier. Gevo’s hydrocarbon revenues consisted of sales of isooctane, isooctane and jet fuel. The company posted grant and other revenue of $0.1 million in the reported period, down $0.1 million against the same period in FY2015.
The highlights
Gevo said that cost of goods sold in 3Q2016 came at $9.7 million against $10.6 million in the comparable quarter in FY2015. Cost of goods sold comprised nearly $8.1 million linked with the production of isobutanol, ethanol and linked products and nearly $1.5 million in depreciation cost. Gross loss came at $2.7 million for the quarter closed September 30, 2016.
R&D expense dropped by nearly $0.4 million over the preceding quarter in 2015, mainly due to a decline in employee related costs. S,G&A expense dropped by $2.9 million in the reported quarter, against the same quarter in FY2015, due to a drop in general legal costs amounting to $2.5 million, including litigation related costs. Loss from operations in 3Q2016 was $6.1 million against $9.3 million in the comparable quarter in FY2015. Interest expense was $2.1 million, unchanged against the same quarter, a year earlier.
In November, Alaska Airline flew its commercial aircraft with Gevo’s cellulosic ATJ. Previously, the company confirmed on the completed production of first cellulosic renewable jet fuel in the world that can be used only in commercial flights.
In the last trading session, the stock price of Gevo jumped more than 8% to close the session at $0.336.
