The following is a summary of the OPAL Fuels Inc. (OPAL) Q4 2023 Earnings Call Transcript:
Financial Performance:
OPAL Fuels reported a record Q4 adjusted EBITDA of $32 million - a 57% increase from 2022. The annual adjusted EBITDA was $52 million.
Q4 revenues were $87 million, a significant increase from $67 million in Q4 2022. The increase was mainly due to environmental credit sales, RNG fuel and fuel station services.
RNG production increased from 0.7 million MMBtus in Q3 2023 to 0.8 million MMBtus in Q4 2023, primarily driven by the Emerald project.
Net income for Q4 was $20.1 million, up from $0.3 million in Q3 2023, largely due to environmental credit sales and the Emerald project.
As of end-2023, approximately $187 million was drawn from the company's $500 million credit facility, leaving its liquidity at $348 million.
The company expects a 60% to 80% growth in RNG production, and an adjusted EBITDA ranging from $90 million to $100 million for 2024.
Business Progress:
2023 saw an operational RNG design capacity of 8.8 million MMBtus, and the construction of new projects added substantial capacity.
The company boasts eight operational RNG projects while six others are under construction, representing an additional 4.4 million MMBtu of annual design capacity.
OPAL has started construction of Fall River 2.4 megawatt renewable electricity project which is expected to begin operations by year-end.
RNG projects Sapphire and Prince William are progressing well with an expected operations commencement within 2024.
Two Central Valley dairy projects have been delayed due to contract disputes, but the effect will be managed to prevent major project timing impacts.
Measures for improved production output at RNG and renewable power projects have been implemented, including the introduction of new metrics for more accurate performance data.
OPAL's lateral expansion and integration will help tap more opportunities in the marketplace.
The company's controlling shareholder, Fortistar, has converted significant high-vote stock to Class B shares potentially increasing the company's eligibility for inclusion in stock indices.
OPAL predicts 2024 capital expenditures at wholly-owned and joint venture projects to total approximately $230 million.
More details: OPAL Fuels IR
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