Vertex Energy falls after delay in renewable diesel facility startup

Vertex Energy

09/05/2023 15:28

** Oil refiner Vertex Energy Inc's shares  VTNR.O  fall ~18%
to a four-month low of $6.11
    ** Co says renewable diesel (RD) facility startup is delayed
due to a failure in feedstock pumping system
    ** The refiner now anticipates to resume startup activities
in the second half of May
    ** Project was designed to modify VTNR's Mobile, Alabama
Refinery hydrocracking unit to produce renewable diesel fuel
    ** Co reports Q1 net income of $53.9 mln vs $5 mln loss last
year
    ** Q1 2023 net income includes $51 mln from discontinued
operations 
    ** TD Cowen analyst Jason Gabelman says the drop in share
prices is likely due to the delay in startup of RD facility
    ** Capex $5 mln higher than forecast and above recently
updated guidance of $65 mln-$70 mln, while net debt came in
~$160 mln higher than anticipated - TD Cowen
    ** VTNR stock down ~1% YTD

 (Reporting by Arshreet Singh in Bengaluru)