Rentech Inc. Reports Financial Results for Fiscal Year 1994

Strategic Insights -

Rentech Inc., the developer and marketer of a patented process for converting gas into liquid hydrocarbons, announced its financial results for the fiscal year ended December 31, 1994. The company reported a net loss of $1,450,049, or $0.17 per share, compared to a net loss of $287,912, or $0.04 per share, in 1993. Despite the net loss, Rentech experienced a 11-fold increase in operating revenues in 1994, primarily due to income from the start of work on the $10.9 million Henan Province, China gas conversion project.

Key Takeaways:

  • Rentech reported a net loss of $1,450,049 for the fiscal year 1994, compared to a net loss of $287,912 in 1993.
  • The company experienced a 11-fold increase in operating revenues in 1994, primarily due to income from the start of work on the Henan Province, China gas conversion project.
  • The Henan China Project is a $10.9 million contract for a 545 barrel per day gas conversion facility utilizing Rentech's conversion technology.
  • Approximately 10% of the contract work has been completed to date, and Rentech expects a growing stream of revenue from this project over the next several years.
  • Contributing to the net loss for 1994 were costs attributable to the negotiation and final awarding of the Henan, China, project and start-up costs associated with gearing up to deliver the contract requirements.
  • Rentech is aggressively pursuing several other projects worldwide, which, if successful, will provide additional revenues.
  • The company is also taking steps to closely control its ongoing monthly operating costs, which should lead to more positive results in future years.

Statistics:

  • 1994 net loss of $1,450,049, compared to $287,912 in 1993.
  • 11-fold increase in operating revenues in 1994, primarily due to income from the Henan Province, China gas conversion project.
  • $10.9 million contract value for the Henan China Project.
  • 10% of the contract work completed to date.
  • $1,286,703 non-recurring gain from the transfer of the Synhytech Plant assets to Rentech Inc. from Fuelco in 1993.

Sources:

  • Rentech Inc. press release, "Rentech Inc. Reports Financial Results for Fiscal Year 1994," April 3, 1995.
  • Rentech Inc. press release, "Rentech Inc. Announces Acquisition of Future Fuels Pty Limited," 1993.