Aemetis, Inc. (Nasdaq: AMTX) has announced a 43% increase in full-year revenues for 2024, reaching $268.0 million, up from $187.0 million the previous year. This growth comes despite a net loss of $87.5 million, primarily due to interest expenses, highlighting the company's aggressive investment in its renewable energy segments. The Renewable Natural Gas (RNG) division stands out with production capacity more than doubling to 550,000 MMBtu and revenues surging by 139%. With plans to expand RNG capacity to 1,000,000 MMBtu by 2025, supported by $75.0 million in USDA financing, Aemetis is on a path to potentially dominate California's low-carbon fuel sector. The company has 26 dairies expected to be operational by 2026 and 50 already under contract, underscoring its ambitious growth strategy.
In California, the ethanol segment saw a 55% revenue increase to $162.0 million. Aemetis is enhancing sustainability through initiatives like a Mechanical Vapor Recompression system and a $12.0 million solar microgrid installation. The potential adoption of E15 ethanol in California could further boost the company's prospects, aligning with state mandates for lower-carbon fuels. Meanwhile, the India Biofuels segment reported a 20% revenue increase to $93.0 million, with production capacity expanding by approximately 50% to 80 million gallons per year. Aemetis is considering an IPO for this segment in late 2025 or early 2026 and exploring biogas production opportunities.
Regulatory changes are pivotal to Aemetis' strategy. California's amendments to the Low Carbon Fuel Standard, requiring a 9% reduction in carbon intensity, are expected to elevate LCFS credit prices. Additionally, federal tax credits such as 45Q and 45Z could significantly influence the company's financial landscape. Stonegate Capital Partners' valuation analysis projects a price range of $13.02 to $19.03 for Aemetis, with a midpoint of $15.71, based on a sum-of-the-parts analysis. This financial and operational update underscores Aemetis' commitment to renewable energy and its potential to lead in the evolving low-carbon fuel market. For more information, visit https://www.aemetis.com.
