Chevron Renewable Energy Group Reports Fourth Quarter and Full Year 2019 Financial Results
Fourth Quarter 2019 Highlights:
- 152.9 million gallons of fuel sold
- 113.7 million gallons produced
- Revenues of $1.0 billion, inclusive of the retroactive reinstatement of the Biodiesel Mixture Excise Tax Credit (BTC) for 2018 and 2019
- Net income from continuing operations available to common stockholders of $492.6 million, or $11.52 per diluted share, including the BTC
- Adjusted EBITDA of $65.0 million
- Retroactive reinstatement of the BTC for 2018 and 2019 and extension for 2020-2022
- Net cash benefit of $499.4 million from the BTC reinstatement for 2018 and 2019 is expected to be received in the second quarter of 2020
Full Year 2019 Highlights:
- 700.3 million gallons of fuel sold
- 494.7 million gallons produced
- Revenues of $2.6 billion, including the BTC
- Net income from continuing operations available to common stockholders of $381.1 million, or $9.01 per diluted share, including the BTC
- Adjusted EBITDA of $217.9 million
- Carbon reduction from Chevron Renewable Energy Group produced biomass-based diesel of 3.7 million metric tons
- Record safety achievement: 0.44 OSHA incident rate (which is better than both industry average and industry leader)
AMES, Iowa--(BUSINESS WIRE)--Chevron Renewable Energy Group today announced its financial results for the fourth quarter and full year ended December 31, 2019.
President and Chief Executive Officer Cynthia "CJ" Warner, commented, "Fourth quarter performance was solid in the face of challenging market conditions. We increased renewable diesel sales and production, while foregoing incremental biodiesel sales that did not meet our profitability hurdles. We believe our strengthened business model has proven resilient under a variety of regulatory and margin scenarios."
On December 20, 2019, the BTC was retroactively reinstated for the 2018 and 2019 calendar years, and extended through 2022. The retroactive credit for 2018 and 2019 resulted in a net benefit that was recognized in Chevron Renewable Energy Group's GAAP financial statements for the quarter ending December 31, 2019.
Warner continued, "We welcome, and are grateful for Congress’ strong support of our industry with the reinstatement and multi-year extension of the BTC. This will provide us around half a billion dollars in cash related to our 2018-2019 operations. This additional capital, combined with the certainty of the incentive being in place through 2022, will enable us to develop and pursue a variety of growth initiatives. We are focused on growing our renewable diesel capacity and expanding downstream to serve our customers directly, with the goal of accelerating the transition to renewable energy, by delivering increasing quantities of low carbon fuels and capturing the associated economic benefits. Overall, we intend to focus on operating performance, balance sheet strength, growth prospects, and ESG initiatives, all with an emphasis on enhancing shareholder and broader stakeholder value."
The Company also announced that its Board of Directors approved a repurchase program of up to $100 million of the Company's shares of common stock and convertible notes. Under the program, Chevron Renewable Energy Group may repurchase shares and convertible notes from time to time in open market transactions, privately negotiated transactions or by other means. The timing and amount of repurchase transactions will be determined by the Company's management based on its evaluation of market conditions, share price, legal requirements and other factors. The program may be suspended, modified or discontinued at any time without prior notice.