Montauk Renewables Inc. (NASDAQ: MNTK) stock gained by 3.54% at last close whereas the MNTK stock price declined by 5.18% in the after-hours trading session. Montauk Renewables is a renewable energy firm that focuses on biogas management, extraction, and transformation into RNG. The company catches methane and turns it into RNG or electrical power for the electrical grid, keeping it from being set free.
MNTK stock’ Financial Highlights
On Nov 15, 2021, Montauk announced its financial results for the third quarter of 2021. Given below are the highlights:
- The revenue generated for the third quarter of 2021 was $39.7 million which is a rise of 40.7% y-o-y.
- For the third quarter of 2021, the net income was $8.9 million, a hike of 526.9% compared to the previous year.
- The Non-GAAP Adjusted EBTIDA for the third quarter of 2021 has surged by 27.2% to $12.8 million.
- And lastly, the RNG Production has decreased by 0.7% y-o-y to 1.5 million MMBtu.
Depending on inter-period timings on RIN transfers, Montauk’s third-quarter revenue indicates an improvement in the quantity of RINs sold. Elevated natural gas prices, as well as higher-income realized under counterparty sharing arrangements, led to this rise to a lesser extent. The Company was awarded a patent in the third quarter for 24 specific aspects of continuous-feed, closed-loop reactor technology acquired in their acquisition of Montauk Ag Renewables’ assets. The company claims that the reactor can convert agricultural waste into multiple non-fossil, renewable-fuel alternatives with near-zero emissions can create numerous units of renewable energy for each unit of conventional energy consumed and can sequester multiple tonnes of greenhouse gas equivalent emissions for each tonne emitted. The reactor is functional, and the Company is making changes to it to increase its functionality. They anticipate commissioning this plant with these enhancements in 2022.
The company has provided the following estimated financial earnings for the fourth quarter of 2021:
- Revenues from RNG are estimated to be between $38.0 and $46.0 million.
- The volume of RNG produced is projected to be between 1.4 and 1.7 million MMBtu.
- Revenues from renewable energy are estimated to range between $3.8 and $4.7 million.
- Production levels of renewable electricity are estimated to vary between 47 and 57 thousand MWh.