Vertex Energy (NASDAQ: VTNR) reported Q2 EPS of ($0.25), $0.10 worse than the analyst estimate of ($0.15). Revenue for the quarter came in at $21.37 million versus the consensus estimate of $19.84 million.

"As expected, our second quarter performance was impacted by a combination of low UMO availability, extended downtime at our largest refinery and a year-over-year decline in refined product margins, all of which were attributable to the historic disruption caused by the COVID-19 pandemic," stated Benjamin P. Cowart, President and CEO of Vertex. "In response to rapidly changing market dynamics, our management team took decisive action to reduce costs during the second quarter, while maintaining balance sheet discipline to support the long-term growth of our business."

"Business conditions improved during July, as shelter-in-place orders were lifted," continued Cowart. "Since the start of the third quarter, both our Marrero and Heartland refineries have operated near peak utilization, as UMO feedstock availability has returned to near-historical levels. In July, total UMO collections increased by nearly 40% versus June levels."

"During the second quarter, UMO prices were driven to elevated levels, given a lack of feedstock availability," continued Cowart. "Elevated UMO pricing resulted in less favorable product spreads, which impacted our profitability during the second quarter. As economic activity further accelerates and UMO supplies become more readily available, we expect to see a decline in feedstock prices and improved realized margins during the second half of 2020."

For earnings history and earnings-related data on Vertex Energy (VTNR) click here.