Sky Quarry (SKYQ) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were $4.85M, down from $14.40M in Q3 2023, primarily due to lower WTI pricing and a major Foreland refinery refurbishment that temporarily reduced production volumes.

• The company reported a net loss of $4.45M for Q3 2024 and $10.52M for the nine months ended September 30, 2024, compared to a net loss of $0.60M and net income of $0.45M for the same periods in 2023.

• Listed on Nasdaq under ticker 'SKYQ' in October 2024, enhancing visibility and liquidity.

• Closed a $6.7 million public offering to support growth and operations.

• Q3 2024 marked by operational transformation, including refinery refurbishment and new strategic partnerships.

Financial highlights

• Net sales for the nine months ended September 30, 2024, were $19.17M, down from $39.14M year-over-year.

• Gross profit for the nine months was $0.76M, down from $5.73M in the prior year.

• Operating expenses for the nine months were $4.45M, up from $3.82M year-over-year.

• Interest expense and a one-time loss on warrant issuance significantly increased other expenses to $6.84M for the nine months.

• Basic and diluted loss per share for Q3 2024 was $0.25, and $0.59 for the nine months ended September 30, 2024.

Outlook and guidance

• Management anticipates improved production and gross margins following the completion of refinery refurbishments.

• The company expects to meet ongoing cash needs through additional debt or equity financing until operations generate sufficient cash flow.

• Strategic focus remains on increasing crude supply, optimizing costs, and pursuing capital raises.

• Eagle Springs refinery expected to refine sustainable oil in 2025, targeting premium markets.

• Expects increased production and a return to higher revenue and cash flow in coming quarters.