Aemetis Inc (AMTX) 2024 Q2 法說會逐字稿

Greetings, and welcome to the Aemetis second quarter 2024 earnings review conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Todd Waltz, Executive Vice President and Chief Financial Officer of Aemetis, Inc. Mr. Waltz, you may begin.

您好，歡迎參加 Aemetis 2024 年第二季財報回顧電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹東道主 Todd Waltz 先生，他是 Aemetis, Inc. 的執行副總裁兼財務長。

Thank you, Ali. Welcome to the Aemetis second quarter 2024 earnings review conference call. Joining us for the call today is Eric McAfee, Founder, Chairman and CEO of Aemetis, and Andy Foster, President of North America.

謝謝你，阿里。歡迎參加 Aemetis 2024 年第二季財報回顧電話會議。今天參加我們電話會議的有 Aemetis 創辦人、董事長兼執行長 Eric McAfee 和北美區總裁安迪福斯特 (Andy Foster)。

We suggest visiting our website at aemetis.com to review today's earnings release -- earnings press release, the Aemetis Corporate and Investor Presentation, filings with the Security and Exchange Commission, recent press releases and previous earnings conference calls.

我們建議造訪我們的網站 aemetis.com，查看今天的財報——財報新聞稿、Aemetis 公司和投資者介紹、向美國證券交易委員會提交的文件、最近的新聞稿和先前的財報電話會議。

Before we begin our discussion today, I'd like to read the following disclaimer statement. During today's call, we'll be making forward-looking statements, including without limitation statements with respect to our future stock, performance, plans, opportunities and expectations with respect to financing activity and the execution of our business plans. These statements must be considered in conjunction with the disclosures and cautionary warnings that appear in our SEC filings.

在我們今天開始討論之前，我想閱讀以下免責聲明。在今天的電話會議中，我們將做出前瞻性聲明，包括但不限於有關我們未來股票、業績、計劃、機會以及融資活動和業務計劃執行的預期的聲明。這些聲明必須與我們向 SEC 文件中出現的揭露和警告一併考慮。

Investors are cautioned that all forward-looking statements made on this call involve risks and uncertainties and that future events may differ materially from the statements made. For additional information, please refer to the company's Securities and Exchange Commission filings, which are posted on the SEC's EDGAR system and our own company website.

請投資人注意，本次電話會議中所做的所有前瞻性陳述都涉及風險和不確定性，未來事件可能與所做的陳述有重大差異。如需了解更多信息，請參閱公司向證券交易委員會提交的文件，這些文件發佈在 SEC 的 EDGAR 系統和我們公司的網站上。

Our discussion in the call will include a review of non-GAAP measures as a supplement to financial base -- financial results based on GAAP, because we believe these non-GAAP measures serve as a proxy for our companies sources or uses of cash. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is included in our earnings release for the three months and six months ended June 30, 2024, which is available on our website.

我們在電話會議中的討論將包括對非公認會計準則衡量標準的審查，作為財務基礎的補充——基於公認會計準則的財務結果，因為我們相信這些非公認會計準則衡量標準可以代表我們公司的現金來源或使用情況。我們截至 2024 年 6 月 30 日的三個月和六個月的收益發布中包含了非 GAAP 衡量標準與最直接可比較的 GAAP 衡量標準的調整表，可在我們的網站上查看。

Adjusted EBITDA is defined as net income or loss plus to the extent deducted in capitalizing such and calculating such net income, interest expense, income tax expense, intangible and other amortization expense, accretion expense, depreciation expense and share-based compensation expense.

調整後的 EBITDA 定義為淨收入或虧損加上在資本化和計算淨收入、利息費用、所得稅費用、無形資產和其他攤銷費用、增值費用、折舊費用和股權激勵費用時扣除的部分。

Let's review financial results for the second quarter of 2024. Revenue during the second quarter 2024 were $66.6 million compared to $45.1 million for the second quarter of 2023. Our Keyes plant operated during the entire quarter compared to his extended maintenance cycle during a portion of the second quarter of 2023.

讓我們回顧一下 2024 年第二季的財務表現。2024 年第二季的營收為 6,660 萬美元，而 2023 年第二季的營收為 4,510 萬美元。與 2023 年第二季部分時間的維護週期相比，我們的凱斯工廠在整個季度都在運作。

Our dairy natural gas segment produced 89,400 MMBtus from aid operating dairy digesters and reported $1.6 million of revenue and our ninth digester began producing biogas at the end of the second quarter. Our India biodiesel business recognized $24.8 million of revenue, primarily from sales to the India oil marketing companies.

我們的乳品天然氣部門透過援助運作的乳品消化器生產了 89,400 MMBtus，並報告了 160 萬美元的收入，我們的第九個消化器在第二季末開始生產沼氣。我們的印度生質柴油業務實現了 2,480 萬美元的收入，主要來自向印度石油行銷公司的銷售。

Gross loss for the second quarter of 2024 was $1.8 million compared to a $2 million profit during the second quarter of 2023. Selling, general and administrative expenses were $11.8 million during the second quarter of 2024 from $9.7 million during the same period in 2023, driven primarily by the recognition of a loss on asset disposal of $3.6 million.

2024 年第二季的毛虧損為 180 萬美元，而 2023 年第二季的毛利為 200 萬美元。2024 年第二季的銷售、一般和管理費用為 1,180 萬美元，而 2023 年同期為 970 萬美元，這主要是由於確認了 360 萬美元的資產處置損失。

Operating loss was $13.6 million for the second quarter of 2024 compared to an operating loss of $8.7 million for the same period in 2023. Interest expense, including accretion of Series A preferred units in the Aemetis Biogas LLC subsidiary increased to $11.7 million during the second quarter of 2024 compared to $9.6 million during the second quarter of 2023.

2024 年第二季的營運虧損為 1,360 萬美元，而 2023 年同期的營運虧損為 870 萬美元。利息支出（包括 Aemetis Biogas LLC 子公司 A 系列優先單位的增加）在 2024 年第二季增至 1,170 萬美元，而 2023 年第二季為 960 萬美元。

Additionally, Aemetis Biogas recognized $3.5 million of accretion of Series A preferred units during the second quarter 2024 compared to $6.9 million during the second quarter of 2023. Net loss was $29.2 million for the second quarter of 2024 compared to $25.3 million for the second quarter of 2023.

此外，Aemetis Biogas 確認 2024 年第二季 A 系列優先單位的增量為 350 萬美元，而 2023 年第二季為 690 萬美元。2024 年第二季的淨虧損為 2,920 萬美元，而 2023 年第二季的淨虧損為 2,530 萬美元。

Cash at the end of the second quarter of 2024 was $234,000 compared to $2.7 million at the close of the fourth quarter of 2023. We recorded investments in capital projects related to the reduction of carbon intensity of Aemetis ethanol and construction of dairy digesters of $5.4 million for the second quarter of 2024.

2024 年第二季末的現金為 234,000 美元，而 2023 年第四季末的現金為 270 萬美元。我們記錄了 2024 年第二季與降低 Aemetis 乙醇碳強度和建造乳品消化池相關的資本項目投資 540 萬美元。

Now I'd like to introduce the Founder, Chairman and Chief Executive Officer of Aemetis, Eric McAfee for business update. Eric?

現在我想介紹一下Aemetis公司的創辦人、董事長兼執行長Eric McAfee，介紹一下公司的業務狀況。艾瑞克？

Thank you, Todd. Aemetis is executing on a year plan that includes expanded positive cash flow from operations, combined with long term lower interest rate, debt financing guaranteed by the US Department of Agriculture to finance growth. We see solid progress across each of our five business units as we will review today and are currently positive cash flow from operations in all three of our operating businesses. However, before discussing operations and projects, let's review regulatory events that are expected to have a significant positive impact on our businesses.

謝謝你，托德。Aemetis 正在執行一項年度計劃，其中包括擴大營運產生的正現金流、結合長期較低的利率、由美國農業部擔保的債務融資來為成長提供資金。正如我們今天將回顧的那樣，我們的五個業務部門中的每一個都取得了堅實的進展，目前我們所有三個營運業務的營運現金流均為正現金流。然而，在討論營運和專案之前，讓我們回顧一下預計將對我們的業務產生重大積極影響的監管事件。

In addition to hearings and meetings with the California Air Resources Board, we recently hosted the representative of the USDA office of the Chief Economist, for a biogas ethanol plant and SAF plant site tour in California. I also visited Washington DC for a week in May, and again last week, for meetings with top USDA officials, EPA Secretary, Michael Regan, and various staff of senators and Senate committees that directly impact the inflation Reduction Act incentives for renewable fuels, and for ethanol E15 blending approval.

除了與加州空氣資源委員會舉行聽證會和會議外，我們最近還接待了美國農業部首席經濟學家辦公室的代表，參觀了加州的沼氣乙醇工廠和 SAF 工廠。我還在5 月和上週再次訪問了華盛頓特區，與美國農業部高級官員、美國環保局局長邁克爾·裡根以及直接影響可再生燃料通脹削減法案激勵措施的參議員和參議院委員會的各種工作人員會面。

From these meetings and discussions, I can highlight three important external regulatory events that are scheduled to occur over the next two quarters that strongly support the Aemetis business plan. The California Air Resources Board vote on November 8, that is slated to approved the next 20 years of increased demand for renewable fuels and other low-carbon energy sources for transportation, the IRS guidance showing the calculation of the inflation Reduction Act Section 45Z production tax credit that begins in January 2025.

從這些會議和討論中，我可以強調計劃在未來兩個季度發生的三個重要的外部監管事件，這些事件將有力地支持 Aemetis 業務計劃。加州空氣資源委員會於 11 月 8 日投票，計劃批准未來 20 年交通運輸領域對再生燃料和其他低碳能源需求的增加，國稅局指南顯示了通貨膨脹削減法案第 45Z 條生產稅的計算2025 年1 月開始的信貸。

And the permanent approval of the 15% ethanol blend by the Federal EPA, which has been scheduled for early next year as part of a legal settlement with eight Midwestern states. Combined, these three regulatory events significantly increased the value of our products and are expected to generate more than $50 million per year of increased positive cash flow starting in January 2025.

聯邦環保署計劃於明年初永久批准 15% 乙醇混合物，作為與中西部八個州達成的法律和解協議的一部分。這三項監管事件相結合，顯著提高了我們產品的價值，預計從 2025 年 1 月開始，每年將產生超過 5,000 萬美元的正現金流。

Positive cash flow is expected to continue to grow strongly as the value of LCFS credits increase and as additional biogas digesters are built. I should note that in the current quarter, the third quarter of 2024, we are already showing positive cash flow from each of our three operating businesses, including ethanol production, dairy renewable natural gas and India biodiesel.

隨著 LCFS 信貸價值的增加和更多沼氣池的建設，預計正現金流將繼續強勁增長。我應該指出，在本季度，即 2024 年第三季度，我們的三項營運業務（包括乙醇生產、乳製品再生天然氣和印度生物柴油）均已顯示出正現金流。

We have five additional digesters under construction, but the regulatory events on November 8 for LCFS by January 2025 for the 45Z production tax credit and the EPA adoption of E15 are the key elements of strong cash flow and future profitability.

我們還有另外五個沼氣池正在建設中，但 11 月 8 日的 LCFS 監管事件到 2025 年 1 月的 45Z 生產稅收抵免以及 EPA 對 E15 的採用是強勁現金流和未來盈利能力的關鍵因素。

In the Aemetis Biogas business over the past year or so, we have closed $50 million in USDA guaranteed 20-year loans to build dairy biogas digesters and to convert construction loans to term loans for digesters that already completed construction.

在過去一年左右的Aemetis 沼氣業務中，我們已完成了5000 萬美元的美國農業部擔保20 年期貸款，用於建設乳製品沼氣池，並將建設貸款轉換為已完成建設的沼氣池的定期貸款。

We recently received the USDA conditional commitment approval for the next $25 million, renewable energy per America loan and expect to close the funding later this month. An additional $50 million of USDA guaranteed funding is in process for closing later this year for a total of $75 million of new long-term financing from biogas digester and pipeline construction this year.

我們最近收到了美國農業部對下一筆 2500 萬美元可再生能源貸款的有條件承諾批准，預計將於本月晚些時候完成融資。美國農業部另外 5,000 萬美元的擔保資金正在準備中，將於今年稍後完成，今年沼氣池和管道建設的新長期融資總額將達到 7,500 萬美元。

We stored a significant amount of our Q2 2024 renewable natural gas production until Q3 in order to generate almost 80% more LCFS credits under the provisional pathway approval that we expect later this year.

我們將 2024 年第二季度的大量可再生天然氣產量儲存到第三季度，以便根據我們預計在今年稍後獲得的臨時途徑批准，產生近 80% 的 LCFS 信貸。

In July, we dispensed a portion of the RNG production and will continue to spend storage inventory throughout Q3. Cashing in later on the expected higher price of LCFS credits and more than a 80% increase in the number of credits earned at the provisional pathway rate instead of the negative 150 default carbon intensity.

7 月，我們分配了部分 RNG 產量，並將在整個第三季繼續消耗儲存庫存。隨後兌現預期的 LCFS 信用價格上漲，以及以臨時途徑利率獲得的信用數量增加 80% 以上，而不是負 150 違約碳強度。

The California Resources Board has stated that renewable natural gas is an important feedstock for the production of renewable hydrogen for future truck engines, allowing the trucks to be zero emission using a carbon negative fuel. We believe that Aemetis is well positioned supply -- to supply renewable natural gas, renewable hydrogen and negative carbon intensity electricity to power future trucks and cars in California, enabling the transition to zero emission and below zero carbon intensity, heavy duty and light duty vehicles.

加州資源委員會表示，再生天然氣是為未來卡車引擎生產再生氫氣的重要原料，使卡車使用負碳燃料實現零排放。我們相信，Aemetis 在供應方面處於有利地位- 供應可再生天然氣、可再生氫氣和負碳強度電力，為加州未來的卡車和汽車提供動力，從而實現向零排放和低於零碳強度的重型和輕型車輛過渡。

In the development of our Aemetis sustainable [aviation] fuel and renewable diesel business, during the first quarter we received authority to construct air permits for our planned 90 million gallon per year sustainable aviation fuel and renewable diesel plant to be built in Riverbank, California. When operated to produce only sustainable aviation fuel, the design capacity of the plant is about 78 million gallons per year of SAF.

在發展我們的Aemetis 可持續[航空]燃料和可再生柴油業務時，我們在第一季度獲得了為計劃在加利福尼亞州Riverbank 建造的每年9000 萬加侖可持續航空燃料和可再生柴油工廠建造航空許可證的授權。當僅生產可持續航空燃料時，該工廠的設計產能約為每年 7,800 萬加侖 SAF。

The need for sustainable aviation fuel is expected to increase rapidly for the foreseeable future as the 90 billion gallon per year global aviation fuel industry seeks to reduce carbon emissions using renewable fuel to replace petroleum jet fuel. With a strong demand for SAF and with limited supply, we are now discussing the use of innovative pricing structures with our airline customers to accelerate the financing, construction and operation of the SAF plant.

隨著每年 900 億加侖的全球航空燃料產業尋求使用再生燃料替代石油噴射燃料來減少碳排放，在可預見的未來，對永續航空燃料的需求預計將迅速增加。由於對 SAF 的需求強勁且供應有限，我們現在正在與航空公司客戶討論使用創新的定價結構，以加速 SAF 工廠的融資、建設和營運。

As one of the very few companies with all of the key permits needed to construct a large-scale SAF production facility United States, Aemetis is building production facilities to supply renewable aviation fuel to an airline market that is currently not expected to meet its ambitious goals of transitioning to lower carbon intensity operations. In the India biofuels business, in late 2023, we announced that we received a $150 million one year allocation for biodiesel sales to the three India oil marketing companies, or OMCs under a cost-plus contract structure. We began deliveries under this contract in October '23 -- 2023, and I have achieved excellent production and delivery performance.

作為極少數擁有在美國建造大型 SAF 生產設施所需的所有關鍵許可證的公司之一，Aemetis 正在建設生產設施，為目前預計無法實現其雄心勃勃目標的航空市場供應可再生航空燃料向低碳強度運營過渡。在印度生物燃料業務中，2023 年末，我們宣布，我們收到了 1.5 億美元的一年撥款，用於根據成本加成合約結構向三個印度石油營銷公司 (OMC) 銷售生物柴油。我們於2023年10月23日開始根據該合約進行交付，並且取得了出色的生產和交付表現。

The positive impact of cost -- cost-plus pricing that is now being used by the OMCs to purchase biodiesel is expected to continue for the foreseeable future. The India business has positive EBITDA and funds its own operations and capacity growth. This July our new Managing Director of the India business joined the company after serving as the Chief Executive Officer of the GE joint venture in India to build renewable power plants.

OMC 現在用於購買生質柴油的成本加成定價的正面影響預計將在可預見的未來持續下去。印度業務擁有正的 EBITDA，並為其自身營運和產能成長提供資金。今年 7 月，我們的印度業務新任董事總經理加入公司，此前他曾擔任 GE 印度合資企業的首席執行官，負責建造再生能源發電廠。

We are busy with the IPO process and work on the next annual contract for biodiesel sales to India, government-owned oil marketing companies. For the Aemetis ethanol business, the temporary approval of a 15% blend of ethanol in 49 states for this summer and the EPAs recent statement that a permanent E15 approval will be adopted effective next year is expected to have a positive impact on ethanol industry margins as retailers seek to provide lower-cost fuel to consumers.

我們正忙於 IPO 流程，並致力於制定下一份向印度政府擁有的石油行銷公司銷售生物柴油的年度合約。對於 Aemetis 乙醇業務來說，今年夏天 49 個州臨時批准了 15% 混合乙醇，並且 EPA 最近聲明將在明年採用永久 E15 批准，預計將對乙醇行業利潤率產生積極影響。更低成本的燃料。

A recent study by UC Berkeley and Naval Academy economists showed that the adoption of a 15% ethanol blend in California would provide a $2.7 billion per year savings on fuel costs for consumers, equal to about $7 million per day or $0.2 per gallon in California.

加州大學柏克萊分校和海軍學院經濟學家最近的一項研究表明，在加州採用15% 的乙醇混合物每年將為消費者節省27 億美元的燃料成本，相當於加州每天約700 萬美元或每加侖0.2美元。

In Q2, we commissioned an on-site solar energy facility with battery storage to improve cash flow through the reduction of our energy costs and decrease the carbon intensity of the ethanol produced by our Keyes plant, which generates more low carbon fuel standard revenue per gallon using solar energy.

在第二季度，我們啟用了帶有電池儲存的現場太陽能設施，透過降低能源成本來改善現金流，並降低凱斯工廠生產的乙醇的碳強度，每加侖產生更多的低碳燃料標準收入使用太陽能。

The next major step in improving our cash flow and energy efficiency at the Keyes plant is the installation of a mechanical vapor compression system or MVR. We have completed process design and detailed engineering and are now moving forward with the procurement of equipment.

改善凱斯工廠現金流量和能源效率的下一個重要步驟是安裝機械蒸汽壓縮系統或 MVR。我們已經完成了製程設計和詳細工程，目前正在推進設備採購。

The MDR system is designed to reduce fossil natural gas usage by 80% and increase cash flow by $15 million to $29 million annually at the Keyes plant, depending on the value of LCFS credits. The MVR energy efficiency project is budgeted for a direct cost about $21 million and has been rewarded $20 million of grants and tax credits from the California Energy Commission, Pacific Gas and Electric Energy Incentive Program and the Department of Energy and US Treasury Department.

MDR 系統旨在將凱斯工廠的化石天然氣使用量減少 80%，並將現金流量每年增加 1,500 萬至 2,900 萬美元，具體取決於 LCFS 信貸的價值。MVR能源效率專案的直接成本預算約為2,100萬美元，並已獲得加州能源委員會、太平洋天然氣和電力能源激勵計劃以及能源部和美國財政部的2,000萬美元撥款和稅收抵免。

Our Aemetis carbon capture subsidiary has received California state approval to drill the characterization well. The first phase of drilling and installation of the conductor pipe is expected to occur in the next two months.

我們的 Aemetis 碳捕集子公司已獲得加州政府批准鑽探表徵井。導向管的第一階段鑽探和安裝預計將在未來兩個月內進行。

In summary, all five Aemetis business segments are synergistic and create what we refer to as a circular bioeconomy. Our company's values include a long-term commitment to building value for stockholders, the empowerment of and respect for our employees and business partners and making significant and positive contributions to the communities we serve.

總之，Aemetis 的所有五個業務部門都具有協同作用，創造了我們所說的循環生物經濟。我們公司的價值觀包括長期致力於為股東創造價值、賦予員工和業務合作夥伴權力並尊重他們，以及為我們所服務的社區做出重大和積極的貢獻。

Now let's take some questions from our call participants. Ali.

現在讓我們來回答電話參與者的一些問題。阿里.

Apologies for that. I don't know where that music was coming from. Thank you, Mr. McAfee. We will now be conducting a question and answer session. (Operator Instructions)

對此表示歉意。我不知道那音樂是從哪裡來的。謝謝你，麥克菲先生。我們現在將進行問答環節。（操作員說明）

Manav Gupta, UBS.

馬納夫古普塔，瑞銀集團。

So Eric and team I mean the credit bank is building. We saw the building in last night and 26 million metric tons. We are optimistic that something will happen in November. But do you think at what rate a 7%, 9% rate probably is now needed to bring this in check and move the credit prices higher. But like if we look at it by the time we end 2024, the credit bank could be a 32 million, 33 million metric ton. So won't it take significant amount of time even if we go with 7%, 9% rate to actually get the carbon prices to move. That's what I'm trying to understand.

埃里克和團隊我的意思是信貸銀行正在建設。我們昨晚看到了這棟建築和 2600 萬噸。我們樂觀地認為 11 月將會發生一些事情。但你認為現在可能需要多少利率才能控制這種情況並推高信用價格？但如果我們看看到 2024 年底，信貸銀行可能會達到 3,200 萬、3,300 萬公噸。因此，即使我們採用 7%、9% 的利率來真正讓碳價格發生變化，是否也需要花費大量時間。這就是我想要理解的。

We think that (technical difficulty) down to be necessary for the kind of price response that the California Resources Board is seeking because as you know, this funds a hydrogen and electrification, zero emission goals, so a continued low credit price basically postponed those projects, I think as they increasingly see that $30 million to $32 million credit bank number they're going to realize that, 9% basically is the minimum required, not that not the maximum, but the minimum required to move major oil companies forward on buying more credits now.

我們認為（技術難度）對於加州資源委員會正在尋求的價格反應是必要的，因為如您所知，這為氫能和電氣化、零排放目標提供了資金，因此持續較低的信貸價格基本上推遲了這些項目我認為，隨著他們越來越多地看到3000 萬至3200 萬美元的信貸銀行數字，他們將意識到，9% 基本上是最低要求，不是最高要求，而是推動主要石油公司推進購買的最低要求現在有更多學分。

And so their range is 5%, 7% or 9% in the most recent number they came out. But in discussions directly with CARB executives, it's pretty clear that they had no idea that we'd be looking at $32 million credits. So that was not even the range of possibility and the discussions I've had with them. So I think it's good that we have in November date because it gives them almost the entire year to see the buildup in inventory. And if we had a March 2024 decision, I don't think they would have had that clarity.

因此，在他們最近公佈的數字中，他們的範圍是 5%、7% 或 9%。但在與 CARB 高層的直接討論中，很明顯他們不知道我們會考慮 3,200 萬美元的信貸。所以這甚至不是我與他們進行的可能性範圍和討論的範圍。所以我認為我們把日期定在 11 月是件好事，因為這讓他們幾乎有一整年的時間來觀察庫存的累積。如果我們在 2024 年 3 月做出決定，我認為他們不會那麼明確。

So it's actually, in hindsight a good thing for us that those numbers will have built up by the time this decision being in November 8.

因此，事後看來，這些數字在 11 月 8 日做出決定時已經累積起來，這對我們來說實際上是一件好事。

Perfect. And my follow-up quickly is on the ethanol business that US ethanol margins are looking much stronger in 3Q and so hopefully my answer is like you're not hedged and you should be able to participate in this uptick in ethanol margins?

完美的。我的後續行動是關於乙醇業務，美國乙醇利潤率在第三季看起來要強得多，所以希望我的答案是你沒有對沖，你應該能夠參與乙醇利潤率的上升？

Andy, you want to take that?

安迪，你想要那個嗎？

Yeah, we've definitely seen an uptick in margin certainly for the month of July. So yes, I think August is going to be a little softer, as you probably noted yesterday, Manav, that the EIA numbers showed a record production which is everybody is trying to take advantage of margin environment too much so which typically happens with our industry. But no, right now with the price of corn showing has just been flat to down for most of most of the summer.

是的，我們確實看到 7 月的利潤率上升。所以，是的，我認為八月會更加疲軟，正如您昨天可能注意到的那樣，馬納夫，EIA 數據顯示創紀錄的產量，這是每個人都試圖過多地利用利潤環境，所以這通常發生在我們的行業。但事實並非如此，目前玉米價格在夏季的大部分時間裡一直持平或下跌。

We expect larger crop than maybe what the USDA anticipated growing conditions in the Midwest have been very good, except for the Upper Midwest. But I think if you look at the corn belt of Nebraska, Iowa, Illinois is expecting pretty significant crops. So I think given that, we'll probably see some softening in the ethanol price just because inventories are going to build over the next month. But as we get into the fall and there's been a pretty robust export program in ethanol this year. I think for the foreseeable future, we're expecting the margin environment to be much more favorable than it was in Q1.

我們預期中西部地區的收成可能會比美國農業部預期的要大，但中西部地區的生長條件非常好，但中西部地區除外。但我認為，如果你看看內布拉斯加州、愛荷華州、伊利諾伊州的玉米種植帶，預計會有相當可觀的收成。因此，我認為有鑑於此，我們可能會看到乙醇價格出現一些疲軟，因為庫存將在下個月增加。但隨著進入秋季，今年的乙醇出口計畫相當強勁。我認為在可預見的未來，我們預計利潤率環境將比第一季有利得多。

Okay. My last one and quick one is, Eric how many dairy digesters should we expect to be online by year end? I understand the volumes will take time because there is a certification process. But how many digesters do you think you can complete by year-end 2024?

好的。我的最後一個也是快速的一個是，埃里克，我們預計到年底會有多少個乳製品消化器上線？我知道這些卷需要時間，因為有一個認證過程。但您認為到 2024 年底可以完成多少個沼氣池？

Because we have some multiple dairy digesters, we're giving guidance, it will be approximately 16 dairies. We have nine operating, now we have six under construction. So for that 15 total completed for sure. But we have grown we pursue that are on the cost. So definitely expecting, though that the number of dairies were operating will be in the 16 dairy range. The nine that we have currently operating covered 10 dairies and we're adding six more so, about [16],

因為我們有一些多個乳品消化池，所以我們給的指導是，大約有 16 個乳品廠。我們有九個正在運營，現在有六個正在建設中。所以這 15 個任務肯定已經完成了。但我們已經成長，我們追求的是代價。因此，儘管營運中的乳製品廠數量將在 16 家範圍內，但我們絕對可以預期。我們目前經營的 9 家乳製品廠涵蓋 10 家乳製品廠，我們還將再增加 6 家乳製品廠，約[16],

One of the guidance is that we're looking to increasingly focus people on is what our annual run rate of MMBtu production is because you can directly multiply that times the value per MMBtu to get our revenues. And so we issued a press release a few weeks ago about hitting a $300,000 per year run rate and then we'll probably update that either late in fourth quarter or early first quarter with our new run rate. We did project that we'd be at $800,000 approximately 12 months from now. So we're scaling from $300,000 runway from the year to $800,000.

其中一個指導意見是，我們希望人們越來越關注 MMBtu 產量的年運行率，因為您可以直接乘以該值乘以每 MMBtu 的價值來獲得我們的收入。因此，我們幾週前發布了一份新聞稿，表示要達到每年 30 萬美元的運行率，然後我們可能會在第四季末或第一季初用新的運行率更新這一消息。我們確實預計從現在起大約 12 個月後我們的收入將達到 80 萬美元。因此，我們將把每年的跑道費用從 30 萬美元擴大到 80 萬美元。

And then by giving guidance later on this year about exactly what the revenue is per MMBtu when we have 45Z and LCFS in place, I think it will be rather easy to calculate what our annual revenues are at the company from the RNG business.

然後，透過在今年稍後給予關於當我們擁有 45Z 和 LCFS 時每 MMBtu 的收入到底是多少的指導，我認為計算我們公司從 RNG 業務中獲得的年收入將相當容易。

Thank you so much, Eric.

非常感謝你，埃里克。

No, thank you. Appreciate your work.

不，謝謝。欣賞你的工作。

Jordan Levy, Truist.

喬丹·利維，真理主義者。

Afternoon all. I appreciate all the commentary. Eric maybe just to start on the MVR side of things, the project has been in the works for a while now. Can you just give us some thoughts around the confidence level in getting that project up and running for, I guess next year maybe?

下午都。我感謝所有的評論。Eric 可能只是從 MVR 方面開始，這個專案已經進行了一段時間了。您能否給我們一些關於啟動和運行該專案的信心水平的想法，我想也許是明年？

Very high level of confidence. The fabrication of the equipment already has our first $1 million deposits that's been paid. Engineering design has been completed permitting at this phase is completed for what we need to do right now. So we're in a fabrication cycle. And we would expect that within 12 months, we would be completed with the project. So this is a third quarter 2025 target. I would always suggest we have to hold that a little bit loosely. If it slips by a quarter, we shouldn't be surprised. But certainly we're operating toward a third quarter 2025 implementation.

非常高的信心。我們已經支付了第一筆 100 萬美元的設備製造訂金。工程設計已經完成，讓我們現在需要做的事情在這個階段完成。所以我們正處於製造週期。我們預計將在 12 個月內完成此專案。這是 2025 年第三季的目標。我總是建議我們必須稍微寬鬆一點。如果下滑四分之一，我們不應該感到驚訝。但我們肯定會在 2025 年第三季實施。

Great. And then sorry if you talked about -- talked on this already in the opening remarks my phone was cutting out. But could you just talk to some of the importance and thinking around 45Z guidance, especially on the biogas segment and some of the impacts that could have in the range there of outcomes?

偉大的。抱歉，如果您在開場白中談到了這一點，我的手機就關機了。但您能否談談 45Z 指導方針的一些重要性和思考，特別是在沼氣領域以及在結果範圍內可能產生的一些影響？

45Z is a production tax credit based upon the amount of fuel is produced. There are two issues in the biogas calculation because the calculation is pretty simple. You take one gallon of whatever fuel it is; you multiply times its carbon intensity and you end up with a number of tax credits. There's some methods to get this. But essentially those are the two variables. The first question is what is the energy density of a gallon of ethanol? This has been a focus of the meetings I did in Washington DC last week and the tour in May.

45Z 是基於燃料生產量的生產稅收抵免。沼氣計算中有兩個問題，因為計算非常簡單。無論是什麼燃料，你都拿一加侖；你乘以它的碳強度，最終會得到一些稅收抵免。有一些方法可以得到這個。但本質上這是兩個變數。第一個問題是一加侖乙醇的能量密度是多少？這是我上週在華盛頓特區舉行的會議和五月旅行的重點。

It's pretty clear to us that the energy density of a gallon of renewable natural gas should be consistent with the 20 years of policy from the renewable fuel standard. There is one RIN, one Renewable Identification Number for a gallon of ethanol which is the reference gallon energy density in the renewable fuel standard passed originally in 2005. And to change that reference to something else, and as I joke I say should it be one gallon of whale oil, should be one gallon of melted butter. What arbitrary other gallon are we going to throw in there because we're rejecting 20 years of federal law if you don't use ethanol.

我們很清楚，一加侖再生天然氣的能量密度應該符合再生燃料標準20年的政策。一加侖乙醇有一個 RIN，即一個可再生識別號，它是 2005 年最初通過的可再生燃料標準中的參考加侖能量密度。並將其引用更改為其他內容，正如我開玩笑的那樣，我說它應該是一加侖鯨油，應該是一加侖融化的黃油。如果不使用乙醇，我們將拒絕 20 年來的聯邦法律，我們還要往裡面丟多少加侖的水呢？

And that's been persuasive in every single meeting I've had with senators and USDA and EPA administrator, Michael Regan last week et cetera. So we are meeting with all of the members of the committee that are advising the Treasury department. And so far every meeting, I've exited they've all agreed it should be consistent with prior policy it should be ethanol. Ethanol is approximately 76,000 MMBtus, I'm sorry BTUs British Thermal Units for one gallon. And the way that natural gas is defined as one million British Thermal Units. So it's a very simple math. You subtract -- divide [$1 million] by 76,000 you get about 13 gallons is what the energy density of one MMBtu is.

這在我上週與參議員、美國農業部和環保署署長邁克爾·雷根等舉行的每次會議中都具有說服力。因此，我們正在與為財政部提供建議的委員會的所有成員會面。到目前為止，每次會議，我都退出了，他們都同意它應該與先前的政策一致，它應該是乙醇。乙醇大約是 76,000 MMBtus，抱歉，一加侖是 BTU 英國熱量單位。以及天然氣被定義為一百萬英國熱量單位的方式。所以這是一個非常簡單的數學。將 [100 萬美元] 除以 76,000，您可以得到大約 13 加侖，這就是 1 MMBtu 的能量密度。

That might sound complicated to investors but it's pretty simple, because remember you are multiplying two numbers together. The first number being 13.15. We're getting some music in the background here. Can you guys hear me?

這對投資人來說可能聽起來很複雜，但其實很簡單，因為記住你是將兩個數字相乘。第一個數字是 13.15。我們在這裡播放一些背景音樂。你們聽得到我說話嗎？

Jordan, do you hear us?

喬丹，你聽到我們說話了嗎？

Yeah.

是的。

Yeah. So the second calculation, rather simple. It's just carbon intensity in California. We've been doing this for 15 years. It's using the GREET model. And so twice the guidance has come from treasury most recent June 18 of this year saying that you just calculate your GREET model carbon intensity. We know what that is, because we do LCFS pathways for all of our biogas. So it ranges from negative 320 to negative 370.

是的。所以第二個計算，相當簡單。這只是加州的碳強度。我們已經這樣做了 15 年。它使用 GREET 模型。因此，財政部在今年 6 月 18 日兩次發出指導意見，表示您只需計算 GREET 模型的碳強度。我們知道那是什麼，因為我們對所有沼氣都採取了 LCFS 途徑。所以它的範圍是從負320到負370。

So when you multiply 13.15 times our carbon intensity with that calculation, we end up with about $99 per MMBtu of value at a negative 350 carbon intensity. And again ours, includes carbon intensity is negative 370 or even more. So we are waiting for IRS guidance, that confirms that ethanol will be consistent with prior federal law. And simply that the GREET model will be the GREET model which I have twice said that that's what it's going to be. But there's a table to be issued that will describe different fuels and what the carbon intensity is.

因此，當您將碳強度乘以 13.15 倍時，我們最終會得到每 MMBtu 價值約 99 美元，碳強度為負 350。同樣，我們的碳強度為負 370 甚至更多。因此，我們正在等待美國國稅局的指導，該指導確認乙醇將符合先前的聯邦法律。簡而言之，GREET 模型將是 GREET 模型，我已經兩次說過，這就是它的樣子。但將發布一張表格來描述不同的燃料以及碳強度是多少。

Now because we're talking to investors a lot, I always describe that there's a range of values and that the range of values is between $99 for a negative 350 carbon intensity down to $7.20. So it's a very wide range that the IRS could determine. $7.20 is the carbon intensity of diesel, 720 and a cap on $1 per gallon that they do not allow negative carbon intensity, even though the legislation itself has negative in it.

現在，因為我們與投資者進行了很多交談，所以我總是描述有一個價值範圍，並且價值範圍在 99 美元（碳強度為負 350）到 7.20 美元之間。因此，美國國稅局可以確定的範圍非常廣泛。 7.20 美元是柴油的碳強度，720 和每加侖 1 美元的上限，他們不允許負碳強度，即使立法本身有負面影響。

What we consider to be a worst-case scenario of $7.20. And I personally think there would be some discussion to change that. So that's one of the reasons we spend so much time with the decision-makers is that we are expecting that everybody will have the consensus that it should be the ethanol molecule and it should be the GREET model, and that's just implementation what's already in legislation. And if that's the case it will be $9 per MMBtu. Remember, this is only the 45Z value.

我們認為最壞的情況是 7.20 美元。我個人認為將會有一些討論來改變這一點。因此，我們花費大量時間與決策者交流的原因之一是，我們期望每個人都能達成共識，即應該是乙醇分子，應該是 GREET 模型，而這只是立法中已有內容的實施。如果是這樣的話，每 MMBtu 的價格將是 9 美元。請記住，這只是 45Z 值。

In addition to that, you have the D3 RIN which is 11.727 RINs per MMBtu times current price of $3.40 and is roughly $35 for the D3 Federal RIN, that would be on top of the $99. And then we add the low carbon fuel standard value which at our carbon intensity runs roughly in the $25 range, but would quadruple by the provisional approval and the credit price doubling.

除此之外，您還有 D3 RIN，其價格為每 MMBtu 11.727 RIN 乘以目前價格 3.40 美元，D3 聯邦 RIN 的價格約為 35 美元，高於 99 美元。然後我們添加低碳燃料標準值，以我們的碳強度計算，該標準值大致在 25 美元範圍內，但由於臨時批准和信貸價格加倍，該標準值將增加四倍。

So the -- certainty that we will have in the fourth quarter with IRS guidance plus LCFS mandates and increased credit prices, I think will put us in a position to give investors a solid number that they can then calculate against the MMBtus per year number we have. Is that clear, Jordan?.

因此，我們將在第四季度獲得 IRS 指導加上 LCFS 授權和信貸價格上漲的確定性，我認為這將使我們能夠為投資者提供可靠的數字，然後他們可以根據我們每年的 MMBtus 數字進行計算有。明白了嗎，喬丹？

Yes, absolutely. Thanks so much for the color.

是的，絕對是。非常感謝你的顏色。

Sure.

當然。

Matthew Blair, TPH.

馬修·布萊爾，TPH。

Thank you, and good morning. First question is on India biodiesel. Could you talk about the overall profitability in the second quarter and hopefully disclose an EBITDA level for this segment and were you able to switch to PFAD feedstock, sorry switch away from PFAD feedstocks and switch over to sunflower oil in the quarter?

謝謝你，早安。第一個問題是關於印度的生物柴油。您能否談談第二季度的整體盈利能力，並希望披露該細分市場的 EBITDA 水平，以及您是否能夠改用 PFAD 原料？

The wintertime oils are ones that can handle colder temperatures, and so the wintertime for us is November, December, January and February. So the second quarter did not include any of the wintertime sunflower oil feedstock. Second point is, we don't disclose [gross] margins, because we're in a competitive environment in India, but you can see in our disclosures various calculations that would show that it was a multimillion dollar EBITDA quarter, and we expect to continue to grow that -- grow the revenues as well as grow the EBITDA numbers.

冬季油可以應付較冷的氣溫，因此我們的冬季是十一月、十二月、一月和二月。因此，第二季不包括任何冬季葵花籽油原料。第二點是，我們不披露[毛]利潤率，因為我們在印度處於競爭環境中，但您可以在我們的披露中看到各種計算，表明這是一個數百萬美元的EBITDA 季度，我們預計將繼續增長——增加收入並增加 EBITDA 數字。

Sounds good. And then on the ethanol side, I wanted to clarify that the $10.5 million of IRA tax credits that came through for the MVR system, was any of that $10.5 million either recognized in your EBITDA for the second quarter? And is any of that in your cash balance for the second quarter?

聽起來不錯。然後在乙醇方面，我想澄清一下，MVR 系統獲得的 1050 萬美元 IRA 稅收抵免，這 1050 萬美元中的任何一個是否已計入第二季度的 EBITDA 中？您第二季的現金餘額中有這些嗎？

No, unfortunately, the way that the $10.5 million is this is a 48C credit. So it's investment tax credit, you have to complete the construction of the facility run it for -- I think it is a 90 day period demonstrating that it's hitting the energy efficiency targets. It's designed to do and then you get your tax credits.

不，不幸的是，這 1050 萬美元是 48C 信用額。所以這是投資稅收抵免，你必須完成設施的建設並運行它——我認為這是一個 90 天的時間，證明它正在達到能源效率目標。它的設計目的是讓您獲得稅收抵免。

So we will not actually show that $10.5 million less about a 15% all in cost of sale between all of the things that go on to sell the credits. So we would expect to pocket about $9 million of cash probably in the fourth quarter of next year if things go according to current plan. And that would show up in that quarter as other income be in the tax credit sale category.

因此，我們實際上不會顯示 1050 萬美元減去所有繼續銷售積分的商品的銷售成本約 15%。因此，如果事情按照目前的計劃進行，我們預計明年第四季可能會收到約 900 萬美元的現金。這將在該季度顯現出來，因為其他收入屬於稅收抵免銷售類別。

Okay. That's helpful. And then just to wrap it up, circling back to your LCFS comments, which I thought were pretty interesting. My question is if CARB holds the vote on November 8, would you expect implementation to start up on January 1, 2025? Or is this something that could flip into like Q2 2025, or even the back half of the year?

好的。這很有幫助。最後，回到你對 LCFS 的評論，我認為這非常有趣。我的問題是，如果 CARB 在 11 月 8 日舉行投票，您是否預計將於 2025 年 1 月 1 日開始實施？或者這可能會在 2025 年第二季甚至下半年發生？

I think it's going to slip past the first quarter. I wouldn't be surprised to see it a July 1, 2025, in sort of the way that they think. To me, it's much more important about how big the step down is in 2025 because what you have is a lot of major oil company traders that see excess inventory of LCFS credits was $32 million that Manav was talking about is basically $32 million reasons, not to be in a in a hurry to buy credits.

我認為第一季將會過去。如果按照他們的想法，它會在 2025 年 7 月 1 日到來，我不會感到驚訝。對我來說，更重要的是2025 年的降幅有多大，因為很多大型石油公司交易員都看到LCFS 信用庫存過剩為3200 萬美元，馬納夫所說的基本上是3200 萬美元的原因，而不是急於購買積分。

But if it looks like there's a strong step down in, 2025 immediately, the credits will react. It's credit price will react to that. And so I think it's mostly the projection of what's going to happen in 2025 and 2026 and the major oil company response to that, that's going to affect the price.

但如果 2025 年看起來會立即大幅下降，那麼積分就會做出反應。它的信貸價格將對此做出反應。因此，我認為這主要是對 2025 年和 2026 年將要發生的情況的預測以及主要石油公司對此的反應，這將影響價格。

Great. Thanks for your comments, Eric.

偉大的。感謝您的評論，埃里克。

Thank you. Appreciate it.

謝謝。欣賞它。

Amit Dayal, H.C. Wainwright.

阿米特·達亞爾 (Amit Dayal)，H.C.溫賴特。

Good afternoon, everyone. Thank you for taking my questions. So Eric, you said $50 million in potential annual positive cash flow starting next year. Could you give us sort of a breakdown of how we get to that $50 million from the three operating segments?

大家下午好。感謝您回答我的問題。艾瑞克（Eric），您說從明年開始，年度潛在正現金流將達到 5000 萬美元。您能給我們詳細介紹一下我們如何從三個營運部門獲得這 5000 萬美元嗎？

The bio gas business alone could do the entire $50 million if we get the calculations that we're expecting, quite frankly, I mean, $100 or $99 plus $35 plus of LCFS credits at times an average of 500. It gives us actually [$50 million] rate there, so actually in excess of $50 million. But our ethanol business will have at least one quarter, maybe even two quarters of the benefits of MDR, which is $15 million to $29 million spending on LCFS values.

如果我們得到我們預期的計算，坦白說，我的意思是，100 美元或 99 美元加上 35 美元加上平均 500 的 LCFS 信用額，那麼僅生物天然氣業務就可以賺到全部 5000 萬美元。它給了我們實際上[5000萬美元]的利率，所以實際上超過了5000萬美元。但我們的乙醇業務將至少享受四分之一，甚至可能是 MDR 的四分之一的好處，即在 LCFS 價值上支出 1500 萬至 2900 萬美元。

Our India business should be expanding its contract, and because of some things going on in the winter time we're looking to have expanded margins in the wintertime. So you add it all up and you're actually significantly in excess of $15 million of positive cash flow. So the $50 million was us taking some of the unknowns and putting it into the calculation.

我們的印度業務應該擴大其合同，並且由於冬季發生的一些事情，我們希望在冬季擴大利潤。因此，將所有這些加起來，您的正現金流實際上遠遠超過 1500 萬美元。所以 5000 萬美元是我們考慮了一些未知因素並將其放入計算中。

Amit? Yeah, I think we lost you Amit.

阿米特？是的，我想我們失去了你，阿米特。

Hello.

你好。

Yes. Try it again.

是的。再試一次。

Yes. I was asking about the renewal in India. The (technical difficulty) renewal coming up. Last time it was for $150 million one-year contract. Do you think this time it could be similar or a bigger amount for even a longer-term duration contract?

是的。我問的是印度的續約問題。（技術難度）更新即將到來。上次是價值1.5億美元的一年合約。您認為對於長期合約來說，這次的金額是否會類似或更高？

For reasons of conservatism because this is one of the first large contracts. We previously had a $40 million contract. This one was $150 million. We only used 60% of plant capacity in fulfilling this. So we have increased the capacity of the plant. As you may know we are planning also to continue to do another expansion of capacity frankly in the fourth quarter this year.

出於保守主義的原因，因為這是第一批大型合約之一。我們之前有一份價值 4000 萬美元的合約。這個金額是 1.5 億美元。我們只使用了 60% 的工廠產能來實現這一目標。所以我們增加了工廠的產能。正如您可能知道的那樣，坦白說，我們還計劃在今年第四季繼續進行另一次產能擴張。

So we would expect it to be a much larger contract, utilizing more of our existing capacity and we're continuing to expand in order to take on larger demand. Just as a reminder a 5% blend is about 1.25 billion gallons per year. They're currently running at a little over 250 million gallons per year. So the market is one billion gallons short and the oil marketing companies continue to try to seek to fulfill that billion-gallon gap.

因此，我們預計這將是一份更大的合同，利用更多我們現有的產能，並且我們將繼續擴大規模，以滿足更大的需求。提醒一下，5% 的混合物每年大約需要 12.5 億加侖。目前，它們每年的運行量略高於 2.5 億加侖。因此，市場短缺 10 億加侖，石油行銷公司繼續努力尋求填補這 10 億加侖的缺口。

Understood. Just last one on the IPO process there. I mean, have you actually started any formal work to get this going? Or are you still in sort of [plan]?

明白了。這是關於 IPO 流程的最後一篇。我的意思是，你實際上已經開始任何正式的工作來推動這件事了嗎？或者你還處於某種[計劃]？

We have already contacted investment banking firms. We have our leaders in place inside the company and the financial results over the past years have trended the way that the investment makers gave us guidance. And so we're actively in the process.

我們已經聯繫了投資銀行公司。我們在公司內部有我們的領導者，過去幾年的財務表現一直按照投資人給我們指導的方式發展。因此，我們正在積極參與這個過程。

I would give guidance on that over the course of this quarter. We'll be working closely with narrowing the Investment Bank down to the lead bank and specifically determining timing. The India Sensex market continues to do just brilliantly and so I think that the timing will be earlier or at least that's what we expect the advice to be, but we're going through that process right now.

我將在本季就此提供指導。我們將密切合作，將投資銀行範圍縮小到牽頭銀行，並具體確定時機。印度 Sensex 市場繼續表現出色，因此我認為時機會更早，或至少是我們期望的建議，但我們現在正在經歷這個過程。

So is this a potentially 2024 end of year type of catalyst? Or is that a 2025, you think -- if everything falls into line with the how are you planning things?

那麼這是否是 2024 年底潛在的催化劑？或者你想，如果一切都符合你的計劃的話，那就是 2025 年嗎？

I would be surprised if it was 2024, that certainly at the investment banking firms came back with a strong notion, we can move the paperwork that fast because we're already an audited public company. So much of the work that delays things does not need to be done by us.

如果到了 2024 年，我會感到驚訝，投資銀行公司肯定會帶著一個強烈的想法回來，我們可以這麼快地移動文書工作，因為我們已經是一家經過審計的上市公司。那麼多耽誤事情的工作並不需要我們來做。

And the India process is a very quick process. It's basically the Investment Bank does the due diligence. So yes, it's possible we could do it for the fourth quarter, but I don't put that as an expectation, my expectations first half of next year.

印度的進程是一個非常快的過程。基本上就是投資銀行進行盡職調查。所以，是的，我們有可能在第四季度做到這一點，但我不會將其視為預期，我的預期是明年上半年。

Understand. Thank you, Eric. That's all I have.

理解。謝謝你，埃里克。這就是我所擁有的一切。

Yeah, absolutely.

是的，絕對是。

Dave Storms, Stonegate.

戴夫·斯托姆斯，石門。

Good morning.

早安.

Hey, Dave.

嘿，戴夫。

First of all, congratulations on inclusion in the R3, very excited about that. My first question is just about the asset disposal taken in the quarter and the loss on that. Is there any more color you can give us on that?

首先，恭喜您加入 R3，對此感到非常興奮。我的第一個問題是關於本季進行的資產處置及其損失。你還能給我們更多的資訊嗎？

Did you say asset disposal?

你說資產處分？

Yes. Loss on asset disposal.

是的。資產處置損失。

Yeah. We launched the Mechanical Vapor Recompression, it's called equipment fabrication phase and made the executive decision that the ZEBREX unit, which we had put in place and operated a month the commissioning phase of that should not move forward because we could expand the Mechanical Vapor Compression and do exactly the energy savings and other goals we had and do it one integrated unit rather than running two units. So we decided to reserve against our investment in ZEBREX.

是的。我們啟動了機械蒸汽再壓縮，這被稱為設備製造階段，並做出了執行決定，我們已經安裝並運行了一個月的ZEBREX 裝置，其調試階段不應繼續進行，因為我們可以擴大機械蒸汽壓縮和準確地實現我們的節能和其他目標，並透過一個整合單元來實現，而不是運行兩個單元。因此，我們決定對 ZEBREX 的投資進行儲備。

We will be able to use that equipment in other places in that operation as well as potentially in our jet fuel plant but we took a conservative view, which is we wrote off the entire amount and if we happen to utilize some of the equipment then that's just a benefit.

我們將能夠在該操作的其他地方以及可能在我們的噴氣燃料工廠中使用該設備，但我們持保守觀點，即我們註銷了全部金額，如果我們碰巧使用了某些設備，那就是只是一個好處。

Understood. That's very clear. Thank you. And then just sticking with ethanol, is there any scheduled downtime we should be aware of in the back half of 2024 or was most of that handled when you did all the upgrades in the first half of the year?

明白了。這非常清楚。謝謝。那麼，就堅持使用乙醇，我們是否應該在 2024 年下半年註意到任何預定的停機時間，或者大部分的停機時間是在今年上半年完成所有升級時處理？

Andy, do you want to talk?

安迪，你想談談嗎？

We continue to try to do some of the integration work as we move along. We did a significant amount of that when we had our downtime last spring. It is likely that we will have some probably I would say days of downtime. It won't be anything like we're going to turn the plant off for a month. It won't be anything dramatic like that. But when you're cutting over systems and things like that, there's likely to be two days to three days of outage here and there, but it won't be -- it won't be anything that would be a month long or anything like that.

隨著我們的進展，我們將繼續嘗試做一些整合工作。去年春天我們停工時，我們做了很多這樣的事。我們可能會有幾天的停機時間。我們不會把工廠關掉一個月。事情不會有這樣的戲劇性。但是當你切斷系統和類似的東西時，可能會出現兩天到三天的停電，但不會是——不會是一個月之類的。

Understood. Thank you for taking my questions and good luck on the third.

明白了。感謝您回答我的問題，祝您第三次好運。

Thanks, Dave.

謝謝，戴夫。

Ed Woo, Ascendiant Capital.

艾德·吳，Ascendian Capital。

Yeah, congratulations on all the progress. Can you talk about just your outlook for ethanol pricing and margin and the impact on oil prices, the relatively stable oil prices have on it? Thank you.

是的，祝賀所有的進展。您能簡單談談您對乙醇定價和利潤率的展望以及對油價的影響嗎？謝謝。

I think for the near term, as I said, I think August I'm going to suggest that we'll see some softening in the ethanol margin environment just because of the large production numbers that we've posted over the last few weeks.

我認為短期內，正如我所說，我認為八月我將建議我們將看到乙醇利潤率環境有所軟化，只是因為我們在過去幾週發布的大量產量。

The export program was dented a little bit by the big storms in the Gulf and Texas, particularly, we expect to see that start to recover as we move into September. I think they're playing catch up right now. I think September and October look more favorable.

出口計劃受到海灣地區和德克薩斯州的大風暴的影響，特別是，我們預計進入 9 月後出口計劃將開始恢復。我認為他們現在正在追趕。我認為九月和十月看起來更有利。

And then as we get into the fourth quarter, typically, around harvest, you'll see -- you'll see some disconnections in the market. Depending on, right now, it doesn't appear that there's a strong bean program. It looks like the crop for corn is going to be very strong. Those things can change.

然後，當我們進入第四季度時，通常是在收穫前後，您會看到市場出現一些脫節。目前看來，還沒有一個強大的 bean 程式。看起來玉米的收成將會非常旺盛。這些事情是可以改變的。

Typically, when we get into December, that's when margins really start to soften just because of demand issues. So I would say that for August, we're going to see some softening. I would expect to see a little bit of rebound in September and October. And then as we get into the end of the fourth quarter, we're going to see that typical seasonal softening again.

通常，當我們進入 12 月時，利潤率就會因為需求問題而真正開始疲軟。所以我想說，對於八月份，我們將看到一些軟化。我預計九月和十月會出現一點反彈。然後，當我們進入第四季末時，我們將再次看到典型的季節性疲軟。

Great. Thanks for answering my questions and I wish you guys good luck. Thank you.

偉大的。感謝您回答我的問題，祝你們好運。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you. We have reached the end of our questions at this time. So I'd like to turn the floor back to management for closing comments.

謝謝。我們的問題現在已經結束了。因此，我想請管理層發表最後評論。

Thank you to the Aemetis analysts, stockholders and others for joining us today. Please review the Aemetis company presentation that is posted on the homepage of the Aemetis website. We look forward to talking with you about participating in the growth opportunities at Aemetis.

感謝 Aemetis 分析師、股東和其他人士今天加入我們。請查看 Aemetis 網站主頁上發布的 Aemetis 公司介紹。我們期待與您討論參與 Aemetis 的發展機會。

Thank you for attending today's Aemetis earnings conference call. Please visit the investor section of the Aemetis website, where we'll post a written version and an audio version of this Aemetis earnings review and business update. Ali?

感謝您參加今天的 Aemetis 財報電話會議。請造訪 Aemetis 網站的投資者部分，我們將在其中發布此 Aemetis 收益回顧和業務更新的書面版本和音訊版本。阿里？

Thank you. This concludes today's teleconference. You may disconnect your lines at this time and we thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路，我們感謝您的參與。