Renewable Energy Group, Inc. (NASDAQ:REGI) announced today its financial results for the fourth quarter and full-year ended December 31, 2011.
For the quarter ended December 31, 2011, Adjusted EBITDA was $29.5 million compared to $5.5 million for the same period in 2010. Revenues were $267 million for the quarter ended December 31, 2011 compared to $70 million during the same period in 2010.
Adjusted EBITDA for the year ended December 31, 2011 was $107 million compared to $8 million for the same period in 2010. Revenues were $824 million for the year ended December 31, 2011 compared to $216 million for the same period in 2010.
“Throughout 2011, Renewable Energy Group demonstrated its capabilities by growing revenues substantially and acquiring and restarting a large biorefinery,” said Daniel J. Oh, President and Chief Executive Officer of REG. “REG efficiently operated six commercial-scale biorefineries this year. By growing and highly utilizing our capacity, we were able to satisfy surging demand and more than triple our revenues compared to 2010.”
Oh added: “Biodiesel demand is growing due to the implementation of Renewable Fuel Standard 2. We are building a business with competitive advantages that can meet this demand. Going into 2012, we believe we are well-positioned as the leading producer of biodiesel from low cost feedstocks in the United States.”
REG sold 150 million gallons of biodiesel in 2011, an increase of 121% compared to 2010. The increase in gallons sold was primarily due to an increase in biodiesel demand compared to 2010 as petroleum-fuel refiners and importers sought to meet their renewable volume obligations to purchase biomass-based diesel under the Renewable Fuel Standard 2 (“RFS2”) law, which went into effect in mid-2010. RFS2 required the consumption of 800 million gallons of biodiesel in 2011 and requires 1 billion gallons of consumption in 2012.
REG was able to take advantage of this increased demand primarily due to greater capacity utilization and improving throughput at all of its biorefineries, the purchase and restart of a dormant 30 million gallon/year biorefinery in Albert Lea, Minnesota and by having a full year of production from two production lines at its biorefinery at Seneca, Illinois which commenced production in August 2010. The Albert Lea biorefinery was purchased in July 2011, and restarted in August 2011. The fourth quarter of 2011 represented the first full quarter of revenue contribution from the Albert Lea biorefinery. While continuing to operate the Albert Lea biorefinery, REG plans to retrofit the facility to expand its capabilities to run on low cost feedstocks, which is expected to improve its operating margins upon completion.