Friday, May 14, 2021
Gevo, Inc. (GEVO)
Net-Zero Concept On Track and RNG Project Financed
Gevo Inc is a renewable chemicals and biofuels company engaged in the development and commercialization of alternatives to petroleum-based products based on isobutanol produced from renewable feedstocks. Its operating segments are the Gevo segment and the Gevo Development/Agri-Energy segment. By its segments, it is involved in research and development activities related to the future production of isobutanol, including the development of its biocatalysts, the production and sale of biojet fuel, its Retrofit process and the next generation of chemicals and biofuels that will be based on its isobutanol technology. Gevo Development/Agri-Energy is the key revenue generating segment which involves the operation of the Luverne Facility and production of ethanol, isobutanol and related products.
Poe Fratt, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q2021 EBITDA Loss Higher Than Expected. Adjusting 2021 EBITDA loss estimate. 1Q2021 EBITDA loss of $7.8 million was higher than than expected due to early stage project development expenses of $2.7 million. Our new 2021 EBITDA loss estimate increases to $39.8 million to include the ramping up of early stage project costs, including FEED and other development costs.
Renewable Natural Gas (RNG) financing closed and project on track for startup next year. A 21-year green bond financing of $67.2 million at an interest rate of 1.5% closed and will finance the RNG plant. The wholly-owner project is likely to be consolidated, and development and other costs of $9.3 million were reimbursed at closing. RNG plant starts up in 2H2022 and annual cash flow is estimated at …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
