Gevo reduces 2016 isobutanol production target

Gevo Inc (NASDAQ:GEVO) expects to produces less isobutanol this year than previously forecast, the US biofuels firm said Tuesday, while reporting second-quarter results.

The company restarted production of isobutanol at its plant in Luverne, Minnesota in March and so far in 2016 it has produced about 168,000 gallons. Due to production ramp-up delays it now expects to produce 500,000 to 650,000 gallons for the whole year, compared to a previous target of 750,000 to 1 million gallons. The cost reduction goal remains unchanged.

Gevo said that through the balance of 2016 and into 2017 it would focus on improving the Luverne facility at its current scale. "While the technologies are working, we still need to continue the plant optimization learning curve, turning our attention to shortening batch cycle times and, given the importance of jet and isooctane, tailoring specific grades for those applications, particularly as it relates to the design of a large scale hydrocarbon plant," said chief executive Patrick Gruber.

For the second quarter of 2016, the company reported a net loss of USD 21.5 million (EUR 19.5m), or 0.44 per share, compared to USD 14.4 million a year ago. Non-GAAP adjusted net loss shrank to USD 7.5 million, or USD 0.15 per share, from USD 8.6 million, or USD 0.66.

Revenues declined to USD 8.1 million from USD 8.9 million in the same period in 2015, reflecting mainly lower ethanol production at Luverne, as well as lower ethanol prices and distiller grain prices.

(USD 1.0 = EUR 0.909)

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