Kior Falls as Biofuel Production Misses Forecast by 75%
Kior Inc. (KIOR), a producer of transportation fuels from biomass such as wood waste and non-food crops, fell the the most in five weeks as production at its first commercial plant was 75 percent below its forecast.
Kior fell 9.9 percent to $4.29 at the close in New York, the most since July 2.
The company shipped more than 75,000 gallons (284,000 liters) of fuel from its Columbus, Mississippi, plant in the second quarter, according to a statement today. Pasadena, Texas-based Kior said in May the facility would produce 300,000 gallons to 500,000 gallons. Revenue in the quarter was $239,000, about 12 percent of the $1.93 million average of five analysts’ estimates compiled by Bloomberg.
The Columbus plant opened in October, the first commercial site making cellulosic fuel in the U.S. The facility will be able to make about 13 million gallons a year when it reaches full production.
The shipments to date this year “reflect the learnings inherent in the startup process -- for this and any other large-scale energy infrastructure projects,” Pavel Molchanov, an analyst with Raymond James & Associates Inc. in Houston, said today in a research note.
Kior said the low production in the quarter wasn’t related the company’s core manufacturing process, and output for the year will be 1 million to 2 million gallons.
“I look forward to achieving normal, steady-state optimal operations at Columbus in the first half of 2014, Chief Executive Officer Fred Cannon said during a conference call with analysts today.
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