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Saturday, Jul 2, 2022

Larger Loss at Rentech

Rentech Inc. shares fell 14 percent Wednesday after the renewable fuels developer reported its second straight quarterly loss that was worse than analysts expected.

The Los Angeles clean energy company, whose primary income currently comes from fertilizer sales, said the quarter was affected by lower fertilizer and natural gas prices. The company’s technology converts gas produced by waste, biomass and fossil sources into synthetic fuels.

Rentech reported a fiscal first quarter loss of $15.5 million (-7 cents a share) for the quarter ended Dec. 31, compared with a loss of $1 million (1 cent) a year earlier. Revenue fell 47 percent to $27.1 million.

Excluding items, the loss was 5 cents a share. Analysts surveyed by Thomson Reuters on average expected a 1-cent loss on revenue of $41.5 million.

Chief Executive D. Hunt Ramsbottom said that quarter was in line with internal expectations, since executives expect 2010 to be weaker than the record year of fiscal 2009.

As for prospects for its younger renewable energy business, Ramsbottom said, “we are also encouraged by the Administration’s recent initiatives to promote both renewable energy and clean coal. We believe our unique technologies and projects under development can benefit from incentives for both renewable and clean fossil energy projects.”

After earlier falling 17 percent, shares closed down 17 cents, or 14 percent, $1.01 on the New York Alternet.

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