Gevo (NASDAQ: GEVO) reported Q4 EPS of ($0.87), versus ($5.13) reported last year. Revenue for the quarter came in at $6.6 million, versus $6.7 million reported last year.

Outlook for 2019

In 2019, Gevo intends to continue to develop the markets for its renewable isooctane, jet fuel and isobutanol products made from isobutanol and ethanol, including the value-added animal feed and protein products. Gevo plans to decarbonize the Luverne Facility which will lower the carbon footprint of the products Gevo produces. The resulting low-carbon ethanol is expected to generate improved margins, the results of which Gevo expects to be realized beginning in 2020, depending on project completion schedules. In addition to establishing the infrastructure to decarbonize the Luverne Facility and improve the profitability of the Luverne Facility, Gevo intends to enter into binding, financeable supply contracts for jet fuel, on-road gasoline with isooctane, and isobutanol. Gevo believes that the combination of these agreements, along with the expected financeable nature of these contracts, will help enable Gevo to finance the build-out the Luverne Facility.

The focus for operational, sales and market development activities in 2019 is expected to be the following:

• Enter into binding, financeable jet fuel off-take contracts for general business aviation and commercial aviation.
• Enter into binding, financeable off-take contracts for isooctane for use in on-road gasoline.
• Continue to develop the oxygenated ethanol free gasoline market using isobutanol, primarily in reformulated gasoline or RFG areas. Gevo plans to increase its distribution network, and add additional regions, broadening its distribution footprint. Gevo intends to use isobutanol in its inventory to develop these sales.
• Continue to produce jet fuel and isooctane at the production facility at South Hampton Resources, Inc. in Silsbee, Texas using previously inventoried renewable isobutanol as a feedstock.
• Use the HCS Supply Agreement to obtain financing for and begin construction of a 1.0 million gallons per year (MGPY) isooctane and jet plant to be located at the Luverne Facility. The 1.0 MGPY hydrocarbon plant would increase Gevo’s hydrocarbon production capabilities by a factor of 10 and allow Gevo to better develop the markets for jet fuel and isooctane. As part of the 1.0 MGPY hydrocarbon plant project, Gevo expects to also improve the production assets for isobutanol with the goal of lowering the cost of isobutanol production.
• Sell approximately 18 million gallons or more of ethanol.
• Begin selling higher-margin, premium animal feed, protein products, and corn oil which is expected to improve the profitability of the Luverne Facility. The total amount of animal feed product expected to be sold is greater than 50,000 metric tons.

For earnings history and earnings-related data on Gevo (GEVO) click here.