Tidewater Midstream and Infrastructure Ltd T.TWM

What is the Real Cost of Producing Renewable Diesel?

[TVR]

Finally had time to look in detail at the Q2 financial data.  Other than the RD facility, the rest of the TWM buisness appears to be doing OK after allowing for some revenue declines from midstream turnarounds and unplanned shutdowns.

I was hoping to be able to see what the real cost of producing the renewable diesel is but this does not appear to be reported and the numbers are obscured by blended sales of RD and regular diesel purchased from PGR.  What I wanted to see was the feedstock cost for RD and  the blend of feedstocks used.  I could find nothing on this in eirther the financial statements or the Q2 MD&A.  It appears it is impossible to figure out what the real production cost is for RD.  I want to see the RD feedstck cost, the RD facility operating costs and the real revenue stream from RD sales, not RD + purchased regular diesel.

If anybody has had more success than I have in figuring out the RD production costs I would love to see some information posted.

Renewables  also annnounced the sale for around $10 million of their used oil feedstock operation but did not indicate who the buyer is.

Makes me uncomfortable when key information like RD operating costs is not shared with the shareholders.

[wynner]

Hi TVR. I don't read the Q the way you did. Disclosure I don't own any TWM. I bought mid 50's cents and sold all of it at 32 cents. Took my $7000 or so capital loss. I have a few minutes to reply so here goes. I listened intently to both calls and my opinion is it is all about LCFS credits and the lack of any buyers in July. Operations at HDRD are going great and they made a nice

[TVR]

Good insights here.  The focus on SAF is a big concern for me.  The RD investment was substantially over budget and does not currently have a visible pathway to profitablity and presumably will not until the Credits issue is resolved (if it can be resolved).  The SAF project would be a big $ investment ($500 million?) which they do not have.  Unfortunately the solid financial

[wynner]

Tell it to the government. Government of Canada announces investment in the industrial bioeconomy to reduce GHG emissions From: Agriculture and Agri-Food Canada News release August 19, 2024 – Sarnia, Ontario – Agriculture and Agri-Food Canada Strengthening Canada's bioindustrial sector through research and innovation creates opportunities