Tidewater Renewables (LCFS) Q4 2023 earnings summary

Executive summary

• Q4 revenue was $40.4 million and Adjusted EBITDA was $10.7 million; net loss attributable to shareholders was $12.7 million, including $19.6 million of derivative-contract losses.

• Commercial operations began at Canada's first standalone renewable diesel facility; after early operating challenges, the HDRD Complex returned to design-capacity production in late February 2024.

Financial highlights

• FY 2023 revenue was $97.7 million vs. $76.1 million in 2022; net loss attributable to shareholders was $41.0 million vs. net income of $25.9 million.

• FY 2023 Adjusted EBITDA was $45.9 million vs. $62.4 million; Q4 was $10.7 million vs. $16.7 million in Q4 2022.

• FY 2023 net cash provided by operating activities was $22.8 million vs. $67.4 million; distributable cash flow was $2.7 million vs. $38.1 million.

• Q4 net cash provided by operating activities was $17.2 million vs. $29.1 million; distributable cash flow was $2.1 million vs. $9.4 million.

Outlook and guidance

• 2024 average HDRD throughput is expected at 2,400–2,600 bbl/d, including 1,800–2,000 bbl/d in Q1; Q1 utilization is expected at ~65%.

• 2024 priorities include optimizing HDRD operating costs, maintaining consistent utilization, progressing SAF engineering, and extending or replacing the senior credit facility.

• 2024 maintenance capital expenditures are expected to be ~$7.0 million; the capital program is expected to be restrained.