Aemetis' Q1 2025: Key Contradictions on RNG Tariffs, Ethanol Sustainability, and India Expansion Plans

Impact of tariffs on RNG production, ethanol production capacity and sustainability, carbon credit pricing and impact, ethanol segment profitability, and India business expansion plans are the key contradictions discussed in Aemetis' latest 2025Q1 earnings call.



Financial Performance and Revenue Trends:
- Aemetis reported revenue of $42.9 million in Q1 2025, down from $72.6 million in the previous year.
- The decline was primarily due to delayed biodiesel contracts in India, but the business resumed in April, expected to result in a rebound in Q2.

Ethanol and RNG Production Growth:
- The Keyes ethanol plant experienced a revenue increase of $1.7 million due to stronger ethanol pricing, while RNG volumes rose by 17% year-over-year.
- Growth in ethanol and RNG production is driven by improved pricing and increased production capacity.

Operational Challenges and Cost Management:
- Aemetis reported an operating loss of $15.6 million, largely due to a $1.6 million increase in SG&A expenses, including legal and transaction costs.
- These costs are expected to decrease going forward, as they are related to the sale of investment tax credits.

Impact of Federal and State Policies:
- Aemetis anticipates significant growth due to federal and state policies, such as the California Low Carbon Fuel Standard and the Renewable Fuel Standard.
- These policies enhance the value of low-carbon fuel operations, with expected revenue increases from LCFS credits and D3 RINS.

Debt Management and Financing:
- Aemetis paid off $15.5 million of debt in Q1 2025 and plans to continue reducing debt through the year.
- This is supported by investments that generate tax credits, increased LCFS revenues, and additional dairies coming online, which will improve cash flow.