FutureFuel Corp. announces extended maintenance on its Biodiesel plant, impacting production amid regulatory changes and industry uncertainty.
Quiver AI Summary
FutureFuel Corp. announced that its Biodiesel plant's annual maintenance and turnaround, which began in late December 2024, is taking longer than expected and is now projected to continue through February 2025, delaying any resumption of biodiesel production. This delay comes at a time of uncertainty in the Biodiesel industry following the expiration of the Blenders’ Tax Credit at the end of 2024, which has been replaced by the new producer's tax credit, IRA 45Z, effective January 1, 2025. However, insufficient details from government agencies regarding IRA 45Z have created uncertainty, impacting other biodiesel producers. FutureFuel is assessing its position in the biofuels market in response to these developments. The company specializes in custom and performance chemicals and biofuels, and its biodiesel production is a key part of its operations.
Potential Positives
- FutureFuel is proactively conducting scheduled annual maintenance and turnaround of its Biodiesel plant, indicating a commitment to operational reliability and safety.
- The transition from the Blenders’ Tax Credit to the producer's tax credit under IRA 45Z demonstrates FutureFuel’s adaptability to changing regulatory environments in the biofuels sector.
Potential Negatives
- The extensive maintenance turnaround of the Biodiesel plant is longer than anticipated, delaying production and potentially impacting revenue.
- The expiration of the Blenders’ Tax Credit, crucial for Biodiesel production, creates uncertainty in the industry as companies await details on the new IRA 45Z tax credit.
- Other Biodiesel producers have gone offline, which may indicate broader industry distress that could affect FutureFuel's market position and competitiveness.
FAQ
What is the current status of FutureFuel's Biodiesel production?
FutureFuel's Biodiesel production is currently paused due to an extensive maintenance turnaround that is expected to last through February 2025.
When will Biodiesel production resume at FutureFuel?
Biodiesel production at FutureFuel will resume once the maintenance turnaround is complete, which is anticipated by the end of February 2025.
What tax credits affect FutureFuel's Biodiesel production?
The Blenders’ Tax Credit expired on December 31, 2024, and has been replaced by the IRA 45Z producer's tax credit effective January 1, 2025.
Why is there uncertainty in the Biodiesel industry?
Uncertainty in the Biodiesel industry stems from insufficient details about the new IRA 45Z tax credit, impacting producers' operations.
What are FutureFuel's main products?
FutureFuel primarily manufactures custom chemicals, performance chemicals, and biofuels, with a focus on producing Biodiesel for its customers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$FF Insider Trading Activity
$FF insiders have traded $FF stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $FF stock by insiders over the last 6 months:
- ROELAND POLET (Chief Executive Officer) purchased 10,000 shares for an estimated $51,100
- DONALD C. BEDELL purchased 10,000 shares for an estimated $51,000
- PAUL MANHEIM purchased 6,000 shares for an estimated $36,600
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$FF Hedge Fund Activity
We have seen 66 institutional investors add shares of $FF stock to their portfolio, and 60 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RK ASSET MANAGEMENT, LLC removed 278,024 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $1,598,638
- VANGUARD GROUP INC added 201,587 shares (+14.8%) to their portfolio in Q3 2024, for an estimated $1,159,125
- O'SHAUGHNESSY ASSET MANAGEMENT, LLC added 176,778 shares (+175.4%) to their portfolio in Q3 2024, for an estimated $1,016,473
- TWO SIGMA INVESTMENTS, LP added 167,738 shares (+63.9%) to their portfolio in Q3 2024, for an estimated $964,493
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- AMERICAN CENTURY COMPANIES INC added 140,250 shares (+58.0%) to their portfolio in Q3 2024, for an estimated $806,437
- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP added 138,546 shares (+inf%) to their portfolio in Q3 2024, for an estimated $796,639
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
CLAYTON, Mo., Jan. 31, 2025 (GLOBE NEWSWIRE) -- FutureFuel Corp . (NYSE: FF) (“FutureFuel” or the “Company”), a manufacturer of custom and performance chemicals and biofuels, today announced certain matters with respect to its Biodiesel production.
FutureFuel initiated its scheduled annual maintenance and turnaround of its Biodiesel plant at the end of December 2024. This turnaround has proven more extensive than expected. Therefore, the Company currently believes the turnaround will continue through February 2025. Biodiesel production will not commence until this turnaround is complete.
Biodiesel production has been enabled through the support of Section 40(A), the Blenders’ Tax Credit, which expired on December 31, 2024. This key incentive program has been replaced by a producer's tax credit, IRA 45Z, which became effective January 1, 2025. However, the applicable government agencies have not yet published sufficient details of the IRA 45Z. This creates a level of uncertainty for the Biodiesel industry which has caused other Biodiesel producers and their capacity to go offline. The Company will be closely monitoring this as it considers its approach to Biodiesel production and its role in the biofuels market.
About FutureFuel
FutureFuel is a leading manufacturer of diversified chemical products and biofuels. FutureFuel’s chemicals segment manufactures specialty chemicals for specific customers (“custom chemicals”) as well as multi-customer specialty chemicals (“performance chemicals”). FutureFuel’s custom manufacturing product portfolio includes proprietary agrochemicals, adhesion promoters, a biocide intermediate, and an antioxidant precursor. FutureFuel’s performance chemicals products include a portfolio of proprietary nylon and polyester polymer modifiers and several small-volume specialty chemicals and solvents for diverse applications. FutureFuel’s biofuels segment primarily produces and sells biodiesel to its customers. Please visit www.futurefuelcorporation.com for more information.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements deal with FutureFuel’s current plans, intentions, beliefs, and expectations, and statements of future economic performance. Statements containing such terms as “believe,” “do not believe,” “plan,” “expect,” “intend,” “estimate,” “anticipate,” and other phrases of similar meaning are considered to contain uncertainty and are forward-looking statements. In addition, from time-to-time FutureFuel or its representatives have made or will make forward-looking statements orally or in writing. Furthermore, such forward-looking statements may be included in various filings that the company makes with United States Securities and Exchange Commission (the “SEC”), in press releases, or in oral statements made by or with the approval of one of FutureFuel’s authorized executive officers.
These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. Factors that might cause actual results to differ include, but are not limited to, those set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in FutureFuel’s Form 10-K Annual Report, as amended for the year ended December 31, 2023, and in its future filings made with the SEC. An investor should not place undue reliance on any forward-looking statements contained in this document, which reflect FutureFuel management’s opinions only as of their respective dates. Except as required by law, the company undertakes No obligation to revise or publicly release the results of any revisions to forward-looking statements. The risks and uncertainties described in this document and in current and future filings with the SEC are not the only ones faced by FutureFuel. New factors emerge from time to time, and it is not possible for the company to predict which will arise. There may be additional risks not presently known to the company or that the company currently believes are immaterial to its business. In addition, FutureFuel cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. If any such risks occur, FutureFuel’s business, operating results, liquidity, and financial condition could be materially affected in an adverse manner. An investor should consult any additional disclosures FutureFuel has made or will make in its reports to the SEC on Forms 10-K, 10-Q, and 8-K, and any amendments thereto. All subsequent written and oral forward-looking statements attributable to FutureFuel or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained in this document.
COMPANY CONTACT
FutureFuel Corp.
Roeland Polet
(314) 854-8352
www.futurefuelcorporation.com