Clean Energy Reports 89.4 Million Gallons Delivered and Revenue of $70.5 Million for Second Quarter of 2018
NEWPORT BEACH, Calif.—(BUSINESS WIRE) — Clean Energy Fuels Corp. (NASDAQ: CLNE) (“Clean Energy” or the “Company”) today announced its operating results for the quarter and six months ended June 30, 2018.
The Company delivered 89.4 million gallons in the second quarter of 2018, a 1.1% increase from 88.4 million for the second quarter of 2017. For the six months ended June 30, 2018, the Company delivered 174.5 million gallons, a 0.6% increase from 173.5 million delivered in the same period in 2017. Growth in CNG volumes was offset principally by a reduction in LNG volumes due to the non-renewal of two contracts and a decrease in RNG volumes for non-vehicle fuel that were included in contracts sold to BP, as noted below.
Revenue for the second quarter of 2018 was $70.5 million, a 13.0% decrease from $81.0 million of revenue for the second quarter of 2017. The decrease was primarily attributable to anticipated lower station construction revenue and the absence of revenue in the 2018 period from the Company’s former compressor business (“CEC”) which was combined with Landi Renzo’s compressor business, SAFE, in the fourth quarter of 2017. Such business is no longer consolidated in the Company’s financial results but rather is reported as an equity method investment.
Revenue for the six months ended June 30, 2018 was $172.9 million, a 1.4% increase from $170.5 million of revenue for the same period in 2017. This increase was primarily due to a $26.9 million increase in revenue from the U.S. federal excise tax credits for alternative fuels (“AFTC”), partially offset by decreases in revenue due to the factors described above and a lower effective price per gallon, which 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”) at the end of the first quarter of 2017 (the “BP Transaction”). The BP Transaction has resulted in decreased revenue from the sale of tradable credits the Company generates by selling CNG, LNG and its Redeem™ RNG vehicle fuel. The AFTC, which had previously expired on December 31, 2016, was reinstated on February 9, 2018 to apply to vehicle fuel sales made from January 1, 2017 through December 31, 2017.
Andrew J. Littlefair, Clean Energy’s President and Chief Executive Officer, stated “In the second quarter, we completed a transaction we believe could be pivotal and transformative for our Company, and we also achieved continued operating improvement. First and foremost, our shareholders overwhelmingly approved the investment by an affiliate of Total S.A., the French energy giant, to acquire 25% of Clean Energy. Total is already proving to be a tremendous strategic partner for us and we are looking forward to working with Total to accelerate use of natural gas by heavy-duty trucks in the United States. Additionally, we saw a 40% improvement in operating results, improved cash flows and cash and investment levels that exceed our debt balances. We believe we are at an optimal time for the Company and the natural gas vehicle fuel industry, particularly with the increasing focus on the environmental and economic benefits of renewable natural gas and conventional natural gas, with the force of one of the world’s largest energy companies.”
On a GAAP basis, net loss for the second quarter of 2018 was $(12.0) million, or $(0.07) per share, compared to net loss of $(17.8) million, or $(0.12) per share, for the second quarter of 2017. The second quarter of 2017 included a $0.8 million reduction to the gain from the BP Transaction.
The following information was filed by Clean Energy Fuels Corp. (CLNE) on Tuesday, August 7, 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.