FutureFuel Corp. reported a significant decline in financial performance for the third quarter ended September 30, 2024. Consolidated revenue plummeted by 56% to $51.1 million, down from $116.8 million in the same period of 2023. This sharp decrease resulted in a net loss of $1.2 million, or $0.03 per diluted share, a reversal from the net income of $2.8 million, or $0.06 per diluted share, reported in Q3 2023.
The primary drivers for this downturn were lower sales volumes in the biofuel segment, which decreased revenue by $41.015 million, and reduced biofuel prices, contributing an additional $24.678 million decline. These issues stemmed from a decrease in renewable fuel and RIN prices, with market supply exceeding the EPA Renewable Identification Number mandate. Production was also impacted by an unplanned outage of infrastructure supporting the biodiesel plant, caused by delays from equipment suppliers.
Despite the challenges, the chemical segment saw a slight revenue increase of $81, driven by stronger sales volumes in the coatings market, which added $1,457. However, this was largely offset by reduced chemical sales prices of $1,376 in the agricultural and energy markets. Capital expenditures for the first nine months of 2024 increased to $10.605 million, up from $4.994 million in the prior year.
As of September 30, 2024, cash and cash equivalents stood at $133.398 million, a decrease from $219.444 million at December 31, 2023. This reduction in cash was primarily due to a special cash dividend of $2.50 per common share, totaling $109.408 million, which was paid on April 9, 2024. Management noted that the unplanned outage was resolved before the close of the quarter, and production rates had returned to normal.
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