The following is a summary of the Vertex Energy, Inc. (VTNR) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Vertex Energy reported a net loss of $53.8 million for Q2 2024, an improvement from a loss of $81.4 million in Q2 2023.

• Adjusted EBITDA was negative $22.4 million, driven by lower pricing in the current macroeconomic environment.

• Total capital expenditures were $15 million, 29% below prior guidance, reflecting capital preservation efforts.

• As of June 30, 2024, total cash and equivalents were $18.9 million, with total net debt standing at $303.8 million.

Business Progress:

• Vertex paused its renewable diesel business and returned to conventional fuel production.

• They have managed to reduce operating expenses by 6% quarter-over-quarter and 12% year-over-year.

• The company secured additional loans of $15 million and $20 million in June and July respectively to manage liquidity.

• Vertex has a planned turnaround and continued conversion of the hydrocracker unit to conventional production scheduled for Q3 2024.

Opportunities:

• Focusing on improving margins by transitioning back to conventional fuel production, which operates in a more established market.

Risks:

• Due to the transition back to traditional fuel production and a challenging macroeconomic pricing environment, near-term liquidity constraints and limited financial flexibility could pose significant risks.

• The conversion of hydrocracker to conventional operations and the associated downtime might impact short-term operational results.

More details: Vertex Energy IR

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