On November 13, 2023, OPAL Fuels Inc (OPAL, Financial) released its 8-K filing, announcing its financial and operating results for the third quarter of 2023. Co-CEO Adam Comora expressed satisfaction with the company's progress on strategic growth plans and solid operating and financial results. OPAL Fuels Inc (OPAL) reported revenues of $71.1 million for the quarter, marking a 7% increase from the same period last year. The company's net income for the quarter stood at $0.2 million, a decrease from $5.4 million in the previous year's third quarter.
Financial Performance Overview
OPAL Fuels Inc (OPAL, Financial) saw its net income for the nine months ended September 30, 2023, surge to $106.9 million, compared to just $0.6 million in the same period last year. Basic net earnings per share for Class A common shareholders were $(0.01) for the quarter and $0.59 for the nine months, showing a significant improvement from the $(0.04) reported in both the three and nine months of the previous year.
Adjusted EBITDA for the third quarter was $16.5 million, a slight decrease from $17.7 million in the same quarter last year. The company has revised its presentation of Adjusted EBITDA, no longer including the value of stored RNG and unsold environmental credits, which totaled $33.5 million at the end of the quarter.
Operational and Construction Highlights
OPAL Fuels Inc (OPAL, Financial) reported an average utilization rate of 84% for its RNG operating projects, aligning with management's expectations. The company's annual design capacity online across 8 projects reached 5.2 million MMBtu, more than tripling over the last two years. OPAL Fuels Inc (OPAL) also provided updates on several projects in construction, expecting the Prince William RNG project to commence operations in early 2024.
Guidance and Liquidity
The company estimates that Adjusted EBITDA for the full year 2023 will range between $60 and $63 million. OPAL Fuels Inc (OPAL, Financial) anticipates RNG produced in 2023 to be between 2.7 million and 2.9 million MMBtu, with RNG sold as transportation fuel expected to range between 45 million and 50 million GGEs. As of September 30, 2023, the company's liquidity was $359.9 million, bolstered by a $500 million credit facility entered in September.
Investor Relations and Future Outlook
OPAL Fuels Inc (OPAL, Financial) remains confident in its ability to execute growth plans and has enhanced disclosures to provide investors with a clearer understanding of the company's near and longer-term earnings potential. An earnings call to discuss the third-quarter results is scheduled for November 14, 2023.
For a detailed analysis of OPAL Fuels Inc (OPAL, Financial)'s financials and operational performance, investors and interested parties are encouraged to review the full earnings release and financial statements.
Explore the complete 8-K earnings release (here) from OPAL Fuels Inc for further details.
