Pryme (PRYME) Q3 2024 earnings summary

Executive summary

• Pryme produced 116 metric tons of pyrolysis oil in Q3 2024, bringing year-to-date production to 236 metric tons, with the longest continuous run lasting 100 hours.

• Production ramp-up at Pryme One has been slower than anticipated due to process layout and oil yield issues, leading to lower plant availability.

• An expert group was established to accelerate production ramp-up and implement hardware and procedural improvements.

• ISCC PLUS certification as a collection point was obtained, expanding feedstock sourcing flexibility.

• CEO transition occurred in Q3, with Marieke Bleyenbergh named interim CEO effective November 4, 2024.

Financial highlights

• Q3 2024 revenue was €29,000, with a gross margin of -€3.3 million and an operating loss (EBITDA) of -€4.2 million.

• Net loss for Q3 2024 was -€4.7 million, compared to -€2.5 million in Q3 2023.

• Cash and cash equivalents at quarter-end were €4.6 million, down from €10.4 million at the start of the quarter.

• Capital expenditures in Q3 were €0.4 million, mainly for plant improvements.

• Private placement and convertible loan transactions resulted in the issuance of 10,620,777 new shares in September 2024.

Outlook and guidance

• Q4 2024 production is expected between 80 and 120 metric tons due to reactor seal replacement.

• Limited production volumes are expected in the first half of 2025, with a sharp ramp-up targeted for the second half as plant improvements are completed.

• A structured, risk-based production plan is in place to address current constraints and test plant components at or near full capacity through Q3 2025.