Renewable Energy Group Inc works for companies throughout the United States, providing maintenance for operating with biofuels and renewable chemicals production. It’s a company that produces and distributes renewable biofuels; it converts natural fats, oils into biodiesel.
For almost twenty years REG has been a producer of biofuel. This company has reached not bad achievements in its sphere. In 2008 REG introduced REG-9000 biodiesel brand and quality specifications. Joe Jobe being National Biodiesel Board CEO even said he was quite satisfied with REG’s program which was new for that time. He also said that ASTM D 6751 (standards development organization) defined the requirements for biodiesel, and the BQ-9000 program fitted them all. REG had once again proven itself as an industry quality leader by committing its product to a quality level that suited to the ASTM requirements.
In 2012 the company received government tax incentives for great results in biodiesel fuel production.
Nevertheless it has faced some problems this year. In 2015 there is shares percentage dropped by Renewable Energy Group that is equal to 17. Renewable Energy Group Inc is down by 9.7% after the company lowered its third quarter adjusted EBITDA guidance from the company’s previous guidance of EBITDA. The company also guided for a total loss of quite a big sum.
Daniel J. Oh being the President and CEO of the company said that throughout the quarter they had experienced an unsteady selling environment full of significant decline in RIN prices mainly due to continued high industry production levels.
The guidance cut doesn’t foresee success for the next year’s earnings and REGI 2016 EPS could take a hit.
By far share price is $8.07 per one after the decline of approximately 0.31% or $0.03. The company has about 300 000 shareholders so they all will face this problem. Renewable Energy Group Inc has declined 15.63% since April 1, 2015 and is reducing. REGI is even below S&P500, American stock market index of US companies. This all is the result of 6 months negative chart setup for the $350.79M company.
There were also some problems inside the company that might have influenced the general result. There were two fires at the bio-refineries. The explosion happened in September, The explosions happened in April and September. In spring two workers were injured and in autumn four workers were injured. Both explosions destroyed some equipment, but it has been restarted and maintained. The President and CEO Daniel J. Oh also added that the structural damage from the September fire had been far less than the April incident. They continued to have great confidence in the technology and facility. Their current estimate was that their team would have the plant back online by the end of January. So, such cases may affect the whole conclusion regardless of whether a person wants it or not.
There are many shareholders who may be affected by this entire situation. They are, particularly, Towle & Co has 3.68% of its portfolio in Renewable Energy Group Inc for 1.72 million shares. Connective Capital Management Llc holds 324,420 shares or 2.64% of their US portfolio. Eidelman Virant Capital has 0.84% invested in the company for 162,839 shares. The Texas-based Carlson Capital L P has 0.47% in the stock. Eam Investors Llc, a California-based fund reported 274,920 shares.
Investors should be careful and pay attention to future indications of possible sighs of problems and deal with other partners with caution.
