Why Vertex Energy (VTNR) Shares Are Sliding Today - Vertex Energy (NASDAQ:VTNR)

Vertex Energy Inc VTNR shares went down following its first-quarter results, which was hit by a delay in its renewable diesel startup sequence due to a failure in the feedstock pumping system.
VTNR reported first-quarter FY23 revenue of $691.14 million, compared to $74.54 million a year ago, missing the consensus of $754.25 million.
EPS from continuing operations was $0.04 compared to $(0.12) a year ago, missing the consensus of $0.13. EPS was $0.68 versus $(0.08) last year.
Gross margin contracted by over 700 bps to 9.8%. Vertex reported operating income of $24.49 million, compared to the loss recorded in 1Q22.
Net cash used in operating activities from continuing operations expanded to $(36.65) million, compared to $(8.66) million in 1Q22.
Adjusted EBITDA increased 167.8% Y//Y to $34.88 million. The margin was 5.1%, down 1,242 bps.
Mobile Refinery operational results were in-line with guidance for throughput and capture rate, at 71,328 bpd and 51%, respectively.
As of March 31, 2023, VTNR held cash and equivalents of $95.1 million, including restricted cash of $8.4 million.
"Regretfully, we are experiencing a delay in our renewable diesel startup sequence due to a failure in our feedstock pumping system. However, our team is focused on addressing known issues, minimizing impacts, and resuming startup sequencing following repair and reinstallation operations,” stated Benjamin P. Cowart, President and CEO of Vertex.
2Q23 Outlook: VTNR expects Mobile Refinery Conventional Throughput Volume of 68-72 Mbpd. It expects a capital expenditure of 30 million-$35 million.
Price Action: VTNR shares are trading lower by 16.5% at $6.22 on the last check Tuesday.

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Why Vertex Energy Shares Are Sliding Today