4 Reasons Methes Energies International, Inc. (MEIL) is Gear 4 Reasons Methes Energies International, Inc. (MEIL) is Geared Up for a “Big” Year
Biodiesel solutions provider Methes Energies was recently featured in a Seeking Alpha article highlighting several key points as to why the company is poised for a “big year,” taking into consideration the overall biodiesel market and factors specific to Methes Energies.
To read the full article visit: https://seekingalpha.com/article/1996251
Rise in biodiesel production
The U.S. is the largest market for biodiesel, representing 67 percent of global advanced biofuel products, positioning Methes Energies in a prime segment of the renewable energy market.
“Currently, Methes Energies does indirectly benefit from RIN credits since it does market biodiesel in the U.S. However, in 2014, the company will import biodiesel through its own subsidiary, Methes Energies USA Ltd, which will market biodiesel in the U.S. This will remove the intermediary which will improve the company’s margins.”
Methes Energies’ record biodiesel shipments
Methes Energies has two manufacturing facilities in Canada with combined capacity of 14.3 mgy.
“The Sombra facility began its commercial production in November 2012, and in October last year, the company shipped out a record 18 rail cars carrying over 485,000 gallons from this facility. This was the highest monthly shipment for Methes Energies. The fourth quarter, ending November 30, 2013, was the best production quarter for Methes Energies, with figures surpassing the entire production for fiscal-year 2012.”
Expansion plan of Methes Energies
In 2013, Methes Energies initiated an expansion plan with the end-goal to double the capacity of one of its facilities by November 2014.
“Methes Energies operated with a net loss of $3.9 million in fiscal-year 2012. With the doubling of capacity, Methes Energies will have the potential to generate $104 million in revenue. The $104 million was determined by taking 26 mgy as total capacity and an average price of $4 per gallon. Assuming the overall expenses remain constant, Methes Energies will near profitability in 2014.”
Diversifying towards non-biodiesel
Methes Energies last year set out to diversify its revenue streams by signing a letter of intent to acquire the assets of OTC Technologies, which will equip Methes Energies with the know-how to convert several types of biomass into syngas and expand its technology portfolio, among other advantages.
“What significantly differentiates Methes Energies from other biodiesel producers is its ability to provide biodiesel manufacturing equipment and customized turnkey solutions to small and medium biodiesel producers. … This diversification sets Methes Energies apart from other biodiesel companies. Given its increased biodiesel production, expansion into the Cellulosic biofuels market and the emerging revenue stream as a single source provider of biodiesel manufacturing equipment and services to other producers, Methes Energies is poised for a big year.”
For more information visit www.methes.com
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