Clean Energy Revenue Growth Slows as Fuel Sales Weaken
Second-quarter revenue rose 3.7% to $106.4 million as station construction offset weaker fuel sales.
Clean Energy Fuels (CLNE), a provider of renewable natural gas and conventional natural gas for transportation, reported sharply slower sales growth as lower fuel revenue outweighed higher volumes.
The quarter marked a reversal from the start of the year. Revenue fell 9.5% sequentially, while year-over-year growth slowed from 13.3% in the first quarter. Renewable natural-gas gallons sold also declined 6.2% from the prior quarter, and their annual growth rate dropped to 2.9% from 33.2%.
Revenue rose to $106.4 million from $102.6 million a year earlier. The GAAP net loss narrowed to $14.9 million, or $0.07 a share, from $20.2 million, or $0.09 a share, but widened from the first quarter. On an adjusted basis, Clean Energy posted a loss of $0.01 a share after breaking even a year earlier.
Total fuel volume increased 7.2% to 81.8 million gasoline-gallon equivalents, led by a 24.8% rise in conventional natural-gas volume. Fuel-sales revenue nonetheless declined 10% to $61.1 million, pulling total volume-related product revenue down 5.3%.
Station construction provided the main counterweight, with revenue more than doubling to $16.0 million from $7.8 million and nearly doubling from the first quarter. Revenue from renewable-fuel credits rose 19.3% to $14.2 million on higher prices and volumes and added dairy-project revenue, though it edged lower sequentially.
Adjusted earnings before interest, taxes, depreciation and amortization declined 8.6% to $16.0 million, extending the first quarter's 2.9% annual drop. Fuel-distribution adjusted EBITDA fell 21.9% to $16.6 million, while the adjusted EBITDA loss in the upstream renewable-natural-gas business narrowed 83% to $0.6 million.
Charges tied to Amazon warrants declined to $9.6 million from $17.4 million a year earlier. Clean Energy ended the quarter with $138.0 million in cash and short-term investments, up from March but $18.1 million below its year-end balance.