KiOR reports increased production in Q3 results
KiOR Inc. has published its third quarter financial results, reporting increased production at its Columbus, Miss., plant. "I am happy to report again that we are seeing significant operational progress at our Columbus facility and we believe that we are turning the corner toward steady state operations," said Fred Cannon, president and CEO of KiOR.
According to Cannon, the run rate of the Columbus facility has shown improvement. The plant achieved an on-stream performance of 41 percent during the third quarter. Moving into the final three months of the year, he said the plant has effectively achieved a 100 percent on-stream performance so far. “Our expectations for run times are now measured in weeks—not hours or days,” he said. “We continue to drive throughput and typically run Columbus at about 50 percent to 60 percent of its nameplate capacity.”
During a call to discuss the quarterly results, Cannon also noted that all of the D3 cellulosic biofuel renewable identification numbers (RINs) and D7 cellulosic diesel RINs shown in the U.S. EPA’s EMTS system can be attributed to KiOR.
During the third quarter, KiOR produced 324,000 gallons of cellulosic fuel, up approximately 150 percent from the previous quarter. In the first nine months of the year, KiOR produced a total of 509,000 gallons. In October, production was 167,000 gallons. According to Cannon, the company is on track to produce more than 1 million gallons of cellulosic fuels by the end of the year.
Cannon also discussed the recently announced Columbus II project, which has attracted funding from Vinod Khosla, Khosla Ventures, and Gates Ventures. Bringing the project to fruition is expected to enable KiOR to achieve cash flow profitability in 2015 at lower capital costs with decreased execution and start-up risk, he said, noting that the company will continue to pursue its Natchez project following the development of Columbus II.
KiOR posted a net loss of $43.1 million, or 40 cents per share, for the third quarter, compared to $38.5 million, or 36 cents per share, during the second quarter. Revenues for the third quarter were $720,000, up from $239,000 during the previous quarter.