Gevo Declines on Switching Majority of Luverne Output to EthanolJustin Doom
Gevo Inc., the U.S. biofuel producer backed by French oil company Total SA, declined after saying it plans to produce more ethanol than isobutanol at its Minnesota plant.
Gevo slid 8.1 percent to $1.14 at 4:58 p.m. in New York.
Three of four fermenters at its Luverne, Minnesota, plant will be producing ethanol, with the other making isobutanol, the Englewood, Colorado-based company said in a statement today announcing fourth-quarter earnings. Gevo previously sought to manufacture isobutanol exclusively.
“Our original focus was to focus on one product,” Chief Executive Officer Pat Gruber said on a conference call with analysts. “The additional cash flow is a benefit as we scale up” isobutanol output, taking advantage of rising ethanol prices.
Gevo’s net loss widened to $17 million, or 35 cents a share, from $13 million a year earlier, according to the statement. The average of five analysts’ estimates compiled by Bloomberg was 34 cents. Revenue fell 12 percent to $1.7 million.
The company uses corn and plant waste to make isobutanol, a compound that may be blended with gasoline or converted into hydrocarbon fuels and chemicals.