Chevron Renewable Energy Group Reports Second Quarter 2021 Financial Results and Advances Geismar to Construction Phase
Q2 2021 Highlights
- 163 million gallons of fuel sold
- 132 million gallons of fuel produced
- Revenues of $816 million
- Net income available to common stockholders of $79 million, or $1.62 per diluted share
- Adjusted EBITDA of $103 million
- Raised $550 million of gross proceeds from green bond offering
- Carbon reduction from REG-produced fuels in the quarter of over one million metric tons
- Progressed into construction phase of Geismar improvement and expansion project
- Announced global partnership with Manchester United Football Club
AMES, Iowa--(BUSINESS WIRE)-- Chevron Renewable Energy Group today announced its financial results for the quarter ended June 30, 2021.
The Company also announced that its Board of Directors approved moving forward with construction that will enable both expansion of and improvements to the Company’s Geismar, Louisiana renewable diesel biorefinery. The project is on track to be mechanically complete in 2023 with full operations in early 2024.
Revenues for the second quarter 2021 were $816 million on 163 million gallons of fuel sold. Net income available to common stockholders was $79 million in the second quarter of 2021, compared to net loss of $2 million for second quarter 2020. Adjusted EBITDA was $103 million in the second quarter of 2021, compared to $6 million for second quarter 2020.
"Our flexible feedstock capabilities, diverse production fleet, and commercial optimization systems helped us to manage through the volatile market conditions of the second quarter and deliver strong financial results," said Cynthia (CJ) Warner, President and Chief Executive Officer. "This solid performance, alongside our successful navigation of the many external challenges of the past year, reinforces our optimism about the future."
Warner added, "Continuing our drive to accelerate the transition to sustainable energy, we have moved into the construction phase of the Geismar improvement and expansion project. Expanding our renewable diesel offering and advancing this project continues to be a key pillar of our growth strategy and is a significant milestone for us. In addition, we launched a global partnership with Manchester United with a goal of promoting renewable fuels, the Chevron Renewable Energy Group brand, and worldwide recognition that bio-based diesel enables our customers to generate significant decarbonization NOW. We firmly believe that our low carbon intensity fuels will play a key role in the world’s ongoing energy transition to clean, sustainable energy."
Geismar Improvement and Expansion
The Geismar project brings together the planned expansion with an improvement project for the existing site. This joint project will take total site production capacity from 90 million to 340 million gallons, enhance existing operations, and improve operational reliability and logistics.
The capital cost for the entire Geismar project, now includes both the expansion as well as operational and logistics enhancements to the current plant, is estimated at $950 million. The Company has received all required permits to proceed, and has secured funding necessary for the project. In addition, the Company has agreed upon a long-term lease for marine terminal and logistics services.