OPAL Fuels Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $84.0 million for the third quarter, marking an 18.2% increase from $71.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $219.9 million, a 30% rise from $169.1 million year-over-year. The growth was driven by strong performances in both the RNG Fuel and Fuel Station Services segments, with RNG Fuel revenues increasing by 29% to $25.9 million and Fuel Station Services revenues rising by 22% to $45.4 million in Q3 2024.

Despite the revenue growth, OPAL Fuels reported a net income of $17.1 million for the third quarter, a substantial increase from just $227,000 in Q3 2023. However, net income for the nine months ended September 30, 2024, was $19.7 million, down 82% from $106.9 million in the same period of the previous year. This decline was attributed to a significant one-time gain recorded in 2023 related to the deconsolidation of variable interest entities (VIEs).

The company’s total assets increased to $831.1 million as of September 30, 2024, up from $754.6 million at the end of 2023. Notably, property, plant, and equipment rose to $410.2 million, reflecting ongoing investments in infrastructure. However, cash and cash equivalents decreased to $20.3 million from $38.3 million at the end of 2023, indicating a shift in liquidity.

Operating expenses for the third quarter totaled $71.7 million, up from $67.5 million in Q3 2023, primarily due to increased project development and startup costs, which surged by 598% to $6.8 million. Selling, general, and administrative expenses saw a slight decrease of 4% compared to the previous year.

Strategically, OPAL Fuels is diversifying its operations, including the implementation of hydrogen fueling stations and expanding its biogas sources. The company also entered into a Tax Credit Purchase Agreement, transferring $11.1 million of tax credits for net proceeds of $8.9 million.

As of September 30, 2024, OPAL Fuels had a total indebtedness of $252.9 million, with $231.6 million under the OPAL Term Loan and $21.3 million under the Sunoma Loan. The company remains in compliance with its financial covenants and continues to explore opportunities for growth in the renewable energy sector.