REG announces increased revenue for the fourth quarter


Renewable Energy Group Inc. released fourth quarter 2021 financial results on March 1, reporting an increase in renewable diesel production for the period. Biodiesel sales declined slightly, while revenues increased significantly. REG did not hold an earnings call to discuss its fourth quarter performance due to the Feb. 28 announcement that the company has reached an agreement to acquire Chevron.

REG sold 148 million gallons of fuel in the fourth quarter, down 2% from the same period of 2020. Self-produced North American biodiesel sales were down 9 million gallons, primarily due to the closure of the company’s Houston plant during the quarter and other optimizations. choices. European sales of self-produced biodiesel fell by 3 million gallons due to supply chain issues. Third-party renewable diesel sales increased by 8 million gallons, due to an increase in the sale of REG Ultra Clean gallons.

REG produced 122 million gallons of biodiesel and renewable diesel, down 5%. North American biodiesel production decreased by 7 million gallons and European biodiesel production decreased by 3 million gallons. Renewable diesel production at our Geismar, Louisiana plant increased by 3 million gallons, due to overlapping unplanned downtime in the fourth quarter of 2020 as well as continued high operating rates.

Fourth-quarter revenue was $882 million, down from $548 million previously. REG primarily attributed the increase to higher selling prices resulting from a combination of an 86% increase in ULSK prices and a 69% increase in D4 Renewable Identification Number (RIN) prices, partially offset by lower gallons sold.

Gross profit for the quarter was $84 million, up from $66 million. for the same period of 2020.

For the full year of 2021, REG sold 621 million gallons, down 4% from 2020. North American biodiesel sales were down 27 million gallons, primarily due to fuel choices. optimization and closure of the Houston plant. Lower-margin petroleum diesel sales were also down 10 million gallons. These volume declines were partially offset by an 18 million gallon increase in the sale of third-party renewable diesel gallons, due to an increase in the sale of REG Ultra Clean gallons.

REG gallons produced for the year decreased by 7%, from 519 million gallons in 2020 to 480 million gallons in 2021. North American biodiesel production decreased by 32 million gallons, or 8%, primarily due to the closure of Houston and the production optimization choices mentioned above. Renewable diesel production remained largely flat year-over-year despite Hurricane Ida’s impact on 2021 production.

Revenue for 2021 was $3.2 billion, compared to $2.1 billion in 2020. Gross profit was $370 million, compared to $268 million. Net income available to common shareholders was $212 million, or $4.44 per share on a fully diluted basis for 2021, compared to $120 million, or $2.76 per share on a fully diluted basis. diluted for 2020.

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