FutureFuel Corp. reported significant declines in revenue and profitability for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for the third quarter of 2024 was $51.1 million, a decrease of 56.2% from $116.8 million in the prior year. For the nine-month period, revenue fell by 34.2% to $181.8 million from $276.2 million. The decline in revenue was primarily attributed to a substantial drop in biofuel sales, which decreased by 66.4% in the third quarter and 41.9% for the nine months, driven by reduced sales volumes and lower average prices.

Cost of goods sold also decreased, amounting to $50.2 million for the third quarter of 2024, down from $113.3 million in 2023. This resulted in a gross profit of $383,000 for the third quarter, a significant drop from $3.9 million in the same period last year. For the nine months, gross profit decreased to $14.0 million from $16.9 million.

FutureFuel reported a loss from operations of $2.9 million for the third quarter, compared to a profit of $297,000 in 2023. However, for the nine months, the company still managed to report an income from operations of $4.8 million, albeit down from $7.0 million in the previous year. The net loss for the third quarter was $1.2 million, contrasting with a net income of $2.8 million in 2023. For the nine months, net income decreased to $12.7 million from $14.0 million.

The company’s total stockholders’ equity as of September 30, 2024, was $4.3 million, a significant decline from $21.1 million a year earlier. FutureFuel's cash and cash equivalents also decreased to $133.4 million from $205.9 million in the prior year.

Strategically, FutureFuel remains eligible for various tax credits, including the Biodiesel Blenders' Tax Credit and the Clean Fuel Production Credit, which may provide financial benefits in the future. The company has also applied for the Employee Retention Tax Credit under the CARES Act.

In terms of operational performance, the Chemical Segment showed slight revenue growth in custom chemicals, while performance chemicals experienced a decline due to lower sales volumes. The company continues to manage market risks through long-term sales contracts and derivative instruments, although no derivatives qualified as designated accounting hedges in the first nine months of 2024.

Overall, FutureFuel's financial results reflect challenges in the biofuels market, impacting both revenue and profitability, while the company continues to navigate strategic opportunities and market risks.