Clean Energy Fuels Corp. Reports Q1 2024 Earnings: Detailed Financial Review

  • Income: The reported amount was $103.7 million, topping the $99.57 million estimate.

  • Net loss: The reported figure of $18.44 million represents a deterioration compared to the estimated net loss of $11.88 million.

  • Non-GAAP loss per share: It came in at $0.01, much better than the estimated loss per share of $0.04.

  • Adjusted EBITDA: It achieved $12.8 million, a significant improvement from the previous year’s negative $4.0 million.

  • Quantity of RNG sold: Increased to 58.0 million gallons, indicating an increase in primary product sales.

  • Operational efficiency: It benefited from lower natural gas costs and increased fuel and services volumes, with total fuel volumes increasing to GGE 75.0 million.

On May 9, 2024, Clean Energy Fuels Corp (NASDAQ:CLNE), a leading natural gas marketer and retailer in the U.S. and Canada, released its first quarter 2024 financial results in an 8-K filing. The company, known for supplying compressed natural gas, liquefied natural gas and renewable natural gas, posted revenue of $103.7 million, topping the $99.57 million estimate forecast by analysts. These results underscore the company’s strong market presence and operational efficiency despite prevailing economic uncertainty.

Clean Energy Fuels Corp. Reports  Q1 2024 Earnings: Detailed Financial ReviewClean Energy Fuels Corp. Reports  Q1 2024 Earnings: Detailed Financial Review

Clean Energy Fuels Corp. Reports Q1 2024 Earnings: Detailed Financial Review

Informations about company

Clean Energy Fuels Corp operates primarily in the United States and purchases, compresses, cools or liquefies natural gas and sells these products through its stations. The company builds, operates and maintains natural gas refueling stations for its customers, focusing on heavy-duty trucking, airports, public transit and government fleets, among others.

Financial results and challenges

For the first quarter of 2024, Clean Energy Fuels Corp reported a net loss of $18.443 million, a significant improvement from the $38.697 million loss recorded in the same quarter last year. This reduction in net loss can be attributed to lower Amazon warrant fees and unrealized gain on derivatives related to the company’s Zero Now truck financing program. However, it is important to note that the company still failed to achieve its estimated net profit target of -$11.88 million, indicating ongoing challenges in achieving profitability.

Key strategic events and adjusted EBITDA

Andrew J. Littlefair, president and CEO, highlighted this quarter as a transformational period with significant progress in dairy digester and large gas station projects. Adjusted EBITDA was $12.8 million, a stark contrast to -$4.0 million in the first quarter of 2023, reflecting operational improvement and RNG volume growth.

Detailed financial analysis

The company’s revenue components included $5.4 million from the alternative fuel excise tax credit and $5.6 million from station construction revenues, indicating diversified revenue sources. Additionally, renewable ID and low carbon fuel standards revenues were $8.6 million, driven by higher credit prices and increased fuel sales.

Outlook for 2024

Clean Energy maintains its 2024 guidance, with a projected GAAP net loss of approximately $111 million to $101 million, taking into account potential changes in market conditions and Amazon guarantee fees. Adjusted EBITDA for the year is expected to be in the range of $62 million to $72 million, excluding unforeseen acquisitions and macroeconomic effects.

Investors and analysts’ perspective

Today’s teleconference for investors is scheduled for 4:30 p.m. Eastern time, which will provide further insight into the companies’ strategies and financial condition. Investors and analysts want to understand a company’s approach to overcoming challenges and taking advantage of market opportunities.

Clean Energy Fuels Corp’s first-quarter 2024 results, with revenues exceeding expectations and a significant reduction in net loss, reflect the company’s smooth transition through its transformation phases. However, achieving consistent profitability remains a key challenge that the company intends to address in the coming quarters.

For more information, check out the full 8k Gains publication. (here) by Clean Energy Fuels Corp.

This article first appeared on GuruFocus.