Clean Energy Reports 86.4 Million Gallons Delivered and Revenue of $89.3 Million for Fourth Quarter of 2017
NEWPORT BEACH, Calif.—(BUSINESS WIRE) — Clean Energy Fuels Corp. (Nasdaq: CLNE) ("Clean Energy" or the "Company") today announced operating results for the fourth quarter and year ended December 31, 2017.
The Company delivered 86.4 million gallons in the fourth quarter of 2017, a 2.7% increase from 84.1 million gallons delivered in the fourth quarter of 2016. For the year ended December 31, 2017, the Company delivered 351.4 million gallons, a 6.8% increase from 329.0 million gallons delivered for the year ended December 31, 2016.
Revenue for the fourth quarter of 2017 was $89.3 million, a 12.3% decrease from $101.8 million of revenue for the fourth quarter of 2016. This decrease was primarily due to the absence of revenue recognized in 2017 from a federal alternative fuels tax credit ("AFTC," formerly referred to as VETC) and a lower effective price per gallon in 2017. The lower effective price per gallon was largely attributable to the effects of the Company's sale of certain assets related to the upstream production portion of its RNG business to BP Products North America Inc. ("BP") in the first quarter of 2017 (the "BP Transaction"), which has resulted in decreased revenue from the sale of certain tradable credits the Company generates by selling CNG, LNG and its Redeem™ RNG vehicle fuel (collectively, "RIN and LCFS credits"). These decreases were partially offset by an increase in revenue as a result of the increased gallons delivered in the fourth quarter of 2017 compared to the same period in 2016, as well as increased station construction and compressor revenue.
Revenue for 2017 was $341.6 million, a 15.2% decrease from $402.7 million for 2016. This decrease was primarily due to the absence of AFTC in 2017, a lower effective price per gallon in 2017 largely attributable to decreased revenue from sales of RIN and LCFS credits as discussed above, and lower construction and compressor revenue, partially offset by increased revenue from higher volume in 2017.
Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated "We had a very productive fourth quarter as we completed a variety of actions addressing underperforming stations and putting in place further cost reductions as well as completing the combination of our compressor business with Landi Renzo's SAFE. We believe we are well positioned for 2018 with these actions in place, as well as AFTC revenue for 2017 fuel sales, all of which we will recognize this year. We also see continued volume growth, driven by increased acceptance of our environmentally-friendly, cost-effective and proven alternative fuel solutions."
On a GAAP basis, net loss for the fourth quarter of 2017 was $28.3 million, or $0.19 per share, compared to net loss of $3.9 million, or $0.03 per share, for the fourth quarter of 2016. The fourth quarter of 2017 was negatively impacted by a $6.5 million loss from the combination of our compressor company (CEC) with Landi Renzo's SAFE on December 29, 2017 (the "CEC Combination") and a $7.0 million charge related to LCFS credits that were invalidated (the "LCFS charge"). The fourth quarter of 2016 included a net gain of $9.0 million from the repurchase of debt ("debt repurchases"), $7.0 million of AFTC revenue and $9.8 million more revenue from sales of RIN and LCFS credits than was recorded in the fourth quarter of 2017.
On a GAAP basis, net loss for 2017 was $79.2 million, or $0.53 per share, compared to a net loss for 2016 of $12.2 million, or $0.10 per share. The net loss in 2017 included a $70.7 million gain from the BP Transaction which was offset by the loss from the CEC Combination and $81.1 million in asset impairments and other cash and non-cash charges resulting from the LCFS charge and steps taken in the third quarter of 2017 to minimize and eliminate underperforming assets and lower operating expenses going forward (collectively, "Asset Impairments and Other Charges"). The net loss in 2016 included a net gain of $34.3 million from the debt repurchases, $26.6 million of AFTC revenue and $24.9 million more revenue from sales of RIN and LCFS credits than was recorded in 2017.
Non-GAAP loss per share and Adjusted EBITDA for the fourth quarter of 2017 was $0.18 and $(9.8) million, respectively, which included the loss from the CEC Combination and the LCFS charge. Non-GAAP loss per share and Adjusted EBITDA for the fourth quarter of 2016 was $0.02 and $17.9 million, respectively, which included the net gain from debt repurchases, the AFTC revenue and the incremental revenue from sales of RIN and LCFS credits discussed above for the period.
The following information was filed by Clean Energy Fuels Corp. (CLNE) on Tuesday, March 13, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.