US-based biofuels producer Renewable Energy Group's (REG) volumes of fuel sold in the third quarter were marginally higher on the quarter but unchanged on the year, while the company's production edged lower.
REG sold 176mn of USG in the third quarter, essentially flat on the year. Renewable diesel sales increased by 9mn USG but this was offset by a 7mn USG fall in self-produced biodiesel sales as well as a 1mn USG fall in each of third party biodiesel and petroleum sales.
Production totalled 128mn USG, down by 7pc on the year. This was because of a decrease in output at its Geismar plant in Louisiana of 13pc caused by Hurricane Ida. REG said the impact of the hurricane will be realised in future periods. North American biodiesel production at REG's facilities also fell by 4pc on the year, or 4mn USG.
The company achieved a profit of $42.1mn, compared with $78.8mn in the second quarter, but higher from $26.3mn in the third quarter a year earlier. Revenues increased on the year to $1bn compared with $572bn in the third quarter of 2020. The higher revenues were largely down to higher selling prices for D4 RINs and a 78pc increase in USLD prices over the period.
Chief executive Cynthia Warner said "Financial results were moderated by hedge-related timing as a substantial rise in diesel prices at the end of the quarter resulted in a risk management loss in the period, most of which is expected to be offset in the fourth quarter when the hedged gallons are scheduled for delivery."
