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Surrey, United Kingdom

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Surrey, United Kingdom
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News Article | May 9, 2017
Site: globenewswire.com

ENGLEWOOD, Colo., May 09, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the quarter ended March 31, 2017. Key highlights for the first quarter of 2017 and key subsequent events included: Gevo produced approximately 100,000 gallons of isobutanol at its Luverne Facility during the first quarter of 2017. Consistent with Gevo’s previous isobutanol production guidance, production this quarter was focused on producing sufficient quantities of isobutanol to meet immediate customer demand while also providing enough inventory to support additional market and customer development efforts in the future. Gevo’s production goals are not to maximize production, but rather to align such production with its isobutanol sales efforts. As a result, during certain periods of the first quarter of 2017, Gevo only produced ethanol at the Luverne Facility, and in the second quarter of 2017, Gevo may elect to produce only ethanol. In the first quarter, Gevo’s isobutanol market development efforts were focused on gaining market acceptance in its core gasoline blendstock markets such as marinas and on-road gasoline fueling stations, while maintaining its targeted selling price. Gevo continued to work with its distribution partners to make investments to develop end-customer relationships, as well as to establish value chains to deliver its isobutanol to those end-customers. Gevo’s market development efforts related to its renewable hydrocarbon products were mainly targeted towards entering into binding supply agreements to underpin the economics of the proposed expansion of the Luverne Facility. Gevo has been in discussions with numerous potential alcohol-to-jet fuel (ATJ) and isooctane customers to enter into long term supply agreements, with a goal in 2017 of signing contracts representing the majority of the isobutanol production volumes to be produced at the expanded Luverne Facility. In April 2017, as noted above, Gevo entered into its first long term supply agreement with HCS, which Gevo estimates would represent approximately 10-15% of the isooctane production from an expanded Agri-Energy Facility. As Gevo develops markets for its products, there will likely be a mismatch in timing between isobutanol production and sales. As a result, at times Gevo will likely build isobutanol inventory levels.  At March 31, 2017, Gevo had approximately 288,000 gallons of isobutanol and approximately 52,000 gallons of renewable hydrocarbons in inventory. "During our year end update, we set out a number of key strategic initiatives and I am proud to say that we have made meaningful progress towards those goals. So far in 2017 we have significantly improved our balance sheet, as well as signed the exchange agreement with Whitebox that will extend the maturity of our senior debt, assuming a positive stockholder vote in June. This will provide us with additional time to pursue our strategy moving forward. As I have communicated many times, we had to clear this critical financial hurdle before we could more effectively drive customer development and better execute on our long-term expansion plan." said Dr. Patrick Gruber, Gevo’s Chief Executive Officer. Mr. Gruber continued, "As a reminder, our objective is to sell at least 50% of the capacity at the expanded Luverne facility. Although we still have significant work ahead of us, we are excited by the definitive supply agreement with HCS which is a key first step in achieving our targets. The entire Gevo organization is intensely focused on continuing our momentum throughout 2017 and beyond.” Revenues for the first quarter of 2017 were $5.6 million compared with $6.3 million in the same period in 2016. During the first quarter of 2017, revenues derived at the Luverne Facility related to ethanol sales and related products were $5.5 million, a decrease of approximately $0.3 million from the same period in 2016. This was primarily a result of lower ethanol production and distiller grain prices in the first quarter of 2017 versus the same period in 2016. During the first quarter of 2017, hydrocarbon revenues were $0.1 million, $0.2 million lower than the same period in 2016. Gevo’s hydrocarbon revenues are comprised of sales of ATJ, isooctane and isooctene. Gevo generated grant and other revenue of $32,000 during the first quarter of 2017, down $0.2 million as compared to the same period in 2016, mainly as a result of Gevo’s contract with the Northwest Advanced Renewables Alliances ending in 2016. Cost of goods sold was $9.4 million for the three months ended March 31, 2017, compared with $9.2 million in the same period in 2016. Cost of goods sold included approximately $7.9 million associated with the production of ethanol, isobutanol and related products and approximately $1.5 million in depreciation expense. Gross loss was $3.8 million for the three months ended March 31, 2017, versus $2.9 million in the same quarter in 2016. Research and development expense increased by $0.2 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily to an increase in employee-related expenses. Selling, general and administrative expense increased by $0.3 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily an increase in employee-related expenses. Loss from operations in the three months ended March 31, 2017 was $7.2 million, compared with $5.9 million in the same period in 2016. Non-GAAP cash EBITDA loss in the three months ended March 31, 2017 was $5.4 million, compared with $3.9 million in the same period in 2016. Interest expense in the three months ended March 31, 2017 was $0.7 million, down $1.4 million as compared to the same period in 2016, due to a decrease in outstanding principal balances of our debt. During the three months ended March 31, 2017, there was no change in the value of the embedded derivatives in the 2022 Notes, as the derivatives have had no meaningful value since the third quarter of 2014.  However, Gevo did incur a non-cash loss of $1.0 million in the quarter as a result of exchanging an aggregate of $8.4 million principal amount of the 2022 Notes for shares of Gevo’s common stock in January 2017. During the three months ended March 31, 2017, Gevo also incurred a non-cash loss of $0.3 million during the quarter due to the quarterly mark-to-market valuation of the 2017 Notes. During the three months ended March 31, 2017, the estimated fair value of the derivative warrant liability decreased by $3.3 million, resulting in a non-cash gain from a change in the fair value of derivative warrant liability. The net loss for the three months ended March 31, 2017 was $5.9 million, compared with $3.6 million during the same period in 2016. The non-GAAP adjusted net loss for the three months ended March 31, 2017 was $7.9 million, compared with $8.0 million during the same period in 2016. The cash position at March 31, 2017 was $20.4 million and the total principal face value of the debt outstanding was $17.7 million. Hosting today’s conference call at 4:30 p.m. EST (2:30 p.m. MST) will be Dr. Patrick Gruber, Chief Executive Officer, Mike Willis, Chief Financial Officer, and Geoff Williams, General Counsel. They will review Gevo’s financial results and provide an update on recent corporate highlights. To participate in the conference call, please dial 1(888) 771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.) and reference the access code 44704548. A replay of the call and webcast will be available two hours after the conference call ends on May 9, 2017. To access the replay, please dial 1-888-843-7419 (inside the US) or 1-630-652-3042  (outside the US) and reference the access code 44704548#. The archived webcast will be available in the Investor Relations section of Gevo's website at www.gevo.com. Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce ATJ, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the ability of Gevo to develop markets for its products, Gevo’s ability to enter into binding offtake, sales or supply agreements for its products, Gevo’s ability to produce isobutanol or related hydrocarbon products at its Luverne Facility, Gevo’s ability to finance, construct and operate the contemplated expanded Luverne Facility, Gevo’s 2017 operational and financial targets and milestones, Gevo’s cash operating and financing expectations, the supply agreement with HCS Holding, stockholder approval of the Exchange and the issuance of the 2020 Notes, the Purchase Agreement, Gevo’s ability to secure new customer relationships across core markets, and other statements that are not purely statements of historical fact.  These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo. This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP Cash EBITDA Loss and non-GAAP Adjusted Net Loss Per Share. Non-GAAP Cash EBITDA Loss excludes non-cash items such as depreciation and stock-based compensation. Non-GAAP Adjusted Net Loss Per Share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below. On December 21, 2016, our Board of Directors approved a reverse split of our common stock, par value $0.01, at a ratio of one-for-twenty.  This reverse stock split became effective on January 5, 2017 and, unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in this press release and the accompanying consolidated financial statements have, where applicable, been adjusted to reflect this reverse stock split. 1 Adjusted Net Loss Per Share is calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives; a reconciliation of Adjusted Net Loss Per Share to GAAP net loss per share is provided in the financial statement tables following this release. 2 Cash EBITDA Loss is calculated by adding back depreciation and non-cash stock compensation to GAAP loss from operations; a reconciliation of Cash EBITDA Loss to GAAP loss from operations is provided in the financial statement tables following this release. Gevo, Inc. Condensed Consolidated Statements of Operations Information (Unaudited, in thousands, except share and per share amounts) Gevo, Inc. Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited, in thousands)


News Article | May 9, 2017
Site: globenewswire.com

ENGLEWOOD, Colo., May 09, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the quarter ended March 31, 2017. Key highlights for the first quarter of 2017 and key subsequent events included: Gevo produced approximately 100,000 gallons of isobutanol at its Luverne Facility during the first quarter of 2017. Consistent with Gevo’s previous isobutanol production guidance, production this quarter was focused on producing sufficient quantities of isobutanol to meet immediate customer demand while also providing enough inventory to support additional market and customer development efforts in the future. Gevo’s production goals are not to maximize production, but rather to align such production with its isobutanol sales efforts. As a result, during certain periods of the first quarter of 2017, Gevo only produced ethanol at the Luverne Facility, and in the second quarter of 2017, Gevo may elect to produce only ethanol. In the first quarter, Gevo’s isobutanol market development efforts were focused on gaining market acceptance in its core gasoline blendstock markets such as marinas and on-road gasoline fueling stations, while maintaining its targeted selling price. Gevo continued to work with its distribution partners to make investments to develop end-customer relationships, as well as to establish value chains to deliver its isobutanol to those end-customers. Gevo’s market development efforts related to its renewable hydrocarbon products were mainly targeted towards entering into binding supply agreements to underpin the economics of the proposed expansion of the Luverne Facility. Gevo has been in discussions with numerous potential alcohol-to-jet fuel (ATJ) and isooctane customers to enter into long term supply agreements, with a goal in 2017 of signing contracts representing the majority of the isobutanol production volumes to be produced at the expanded Luverne Facility. In April 2017, as noted above, Gevo entered into its first long term supply agreement with HCS, which Gevo estimates would represent approximately 10-15% of the isooctane production from an expanded Agri-Energy Facility. As Gevo develops markets for its products, there will likely be a mismatch in timing between isobutanol production and sales. As a result, at times Gevo will likely build isobutanol inventory levels.  At March 31, 2017, Gevo had approximately 288,000 gallons of isobutanol and approximately 52,000 gallons of renewable hydrocarbons in inventory. "During our year end update, we set out a number of key strategic initiatives and I am proud to say that we have made meaningful progress towards those goals. So far in 2017 we have significantly improved our balance sheet, as well as signed the exchange agreement with Whitebox that will extend the maturity of our senior debt, assuming a positive stockholder vote in June. This will provide us with additional time to pursue our strategy moving forward. As I have communicated many times, we had to clear this critical financial hurdle before we could more effectively drive customer development and better execute on our long-term expansion plan." said Dr. Patrick Gruber, Gevo’s Chief Executive Officer. Mr. Gruber continued, "As a reminder, our objective is to sell at least 50% of the capacity at the expanded Luverne facility. Although we still have significant work ahead of us, we are excited by the definitive supply agreement with HCS which is a key first step in achieving our targets. The entire Gevo organization is intensely focused on continuing our momentum throughout 2017 and beyond.” Revenues for the first quarter of 2017 were $5.6 million compared with $6.3 million in the same period in 2016. During the first quarter of 2017, revenues derived at the Luverne Facility related to ethanol sales and related products were $5.5 million, a decrease of approximately $0.3 million from the same period in 2016. This was primarily a result of lower ethanol production and distiller grain prices in the first quarter of 2017 versus the same period in 2016. During the first quarter of 2017, hydrocarbon revenues were $0.1 million, $0.2 million lower than the same period in 2016. Gevo’s hydrocarbon revenues are comprised of sales of ATJ, isooctane and isooctene. Gevo generated grant and other revenue of $32,000 during the first quarter of 2017, down $0.2 million as compared to the same period in 2016, mainly as a result of Gevo’s contract with the Northwest Advanced Renewables Alliances ending in 2016. Cost of goods sold was $9.4 million for the three months ended March 31, 2017, compared with $9.2 million in the same period in 2016. Cost of goods sold included approximately $7.9 million associated with the production of ethanol, isobutanol and related products and approximately $1.5 million in depreciation expense. Gross loss was $3.8 million for the three months ended March 31, 2017, versus $2.9 million in the same quarter in 2016. Research and development expense increased by $0.2 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily to an increase in employee-related expenses. Selling, general and administrative expense increased by $0.3 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily an increase in employee-related expenses. Loss from operations in the three months ended March 31, 2017 was $7.2 million, compared with $5.9 million in the same period in 2016. Non-GAAP cash EBITDA loss in the three months ended March 31, 2017 was $5.4 million, compared with $3.9 million in the same period in 2016. Interest expense in the three months ended March 31, 2017 was $0.7 million, down $1.4 million as compared to the same period in 2016, due to a decrease in outstanding principal balances of our debt. During the three months ended March 31, 2017, there was no change in the value of the embedded derivatives in the 2022 Notes, as the derivatives have had no meaningful value since the third quarter of 2014.  However, Gevo did incur a non-cash loss of $1.0 million in the quarter as a result of exchanging an aggregate of $8.4 million principal amount of the 2022 Notes for shares of Gevo’s common stock in January 2017. During the three months ended March 31, 2017, Gevo also incurred a non-cash loss of $0.3 million during the quarter due to the quarterly mark-to-market valuation of the 2017 Notes. During the three months ended March 31, 2017, the estimated fair value of the derivative warrant liability decreased by $3.3 million, resulting in a non-cash gain from a change in the fair value of derivative warrant liability. The net loss for the three months ended March 31, 2017 was $5.9 million, compared with $3.6 million during the same period in 2016. The non-GAAP adjusted net loss for the three months ended March 31, 2017 was $7.9 million, compared with $8.0 million during the same period in 2016. The cash position at March 31, 2017 was $20.4 million and the total principal face value of the debt outstanding was $17.7 million. Hosting today’s conference call at 4:30 p.m. EST (2:30 p.m. MST) will be Dr. Patrick Gruber, Chief Executive Officer, Mike Willis, Chief Financial Officer, and Geoff Williams, General Counsel. They will review Gevo’s financial results and provide an update on recent corporate highlights. To participate in the conference call, please dial 1(888) 771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.) and reference the access code 44704548. A replay of the call and webcast will be available two hours after the conference call ends on May 9, 2017. To access the replay, please dial 1-888-843-7419 (inside the US) or 1-630-652-3042  (outside the US) and reference the access code 44704548#. The archived webcast will be available in the Investor Relations section of Gevo's website at www.gevo.com. Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce ATJ, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the ability of Gevo to develop markets for its products, Gevo’s ability to enter into binding offtake, sales or supply agreements for its products, Gevo’s ability to produce isobutanol or related hydrocarbon products at its Luverne Facility, Gevo’s ability to finance, construct and operate the contemplated expanded Luverne Facility, Gevo’s 2017 operational and financial targets and milestones, Gevo’s cash operating and financing expectations, the supply agreement with HCS Holding, stockholder approval of the Exchange and the issuance of the 2020 Notes, the Purchase Agreement, Gevo’s ability to secure new customer relationships across core markets, and other statements that are not purely statements of historical fact.  These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo. This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP Cash EBITDA Loss and non-GAAP Adjusted Net Loss Per Share. Non-GAAP Cash EBITDA Loss excludes non-cash items such as depreciation and stock-based compensation. Non-GAAP Adjusted Net Loss Per Share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below. On December 21, 2016, our Board of Directors approved a reverse split of our common stock, par value $0.01, at a ratio of one-for-twenty.  This reverse stock split became effective on January 5, 2017 and, unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in this press release and the accompanying consolidated financial statements have, where applicable, been adjusted to reflect this reverse stock split. 1 Adjusted Net Loss Per Share is calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives; a reconciliation of Adjusted Net Loss Per Share to GAAP net loss per share is provided in the financial statement tables following this release. 2 Cash EBITDA Loss is calculated by adding back depreciation and non-cash stock compensation to GAAP loss from operations; a reconciliation of Cash EBITDA Loss to GAAP loss from operations is provided in the financial statement tables following this release. Gevo, Inc. Condensed Consolidated Statements of Operations Information (Unaudited, in thousands, except share and per share amounts) Gevo, Inc. Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited, in thousands)


News Article | May 10, 2017
Site: cleantechnica.com

US solar PV manufacturer SunPower reported its first quarterly earnings this week, revealing revenue well down on the previous quarter, but managed to scrape by without it being a complete disaster by reporting a “smaller than expected” first quarter net loss. In the second half of 2016, SunPower warned investors that things were going to get rocky on the road ahead, with president and CEO Tom Werner explaining that “While prospects for long-term solar industry growth remain strong, we are seeing a significant near-term market dislocation in the solar market that we expect will impact our financial performance through 2017.” The company’s fourth quarter earnings were solid, but included a net loss of $471 million, well in excess of what the company had predicted. Moving into 2017, and things were not much better. Revenue for the quarter was only $399.1 million, down 156% on the fourth quarter. The company’s gross margin fell from -3.1% to -7.8%, while the company’s operating cash flow dipped into the negative as well. However, it wasn’t all bad news, with the company reporting a net loss of only $134.5 million: “only” being the operative word, as it was less than the net loss attributable to the fourth quarter of $275.1 million, and down on analyst estimates. “We executed well despite a challenging industry environment and achieved our financial goals for the first quarter,” said Tom Werner, SunPower president and CEO. Announced back in December, SunPower initiated a restructuring program which would cut its global workforce by 25%, close a 700 MW manufacturing facility, and reduce 2017 capital expenditure. According to Werner, “Strategically, we are executing on our restructuring program, which we firmly believe will enable us to successfully navigate the current market transition while maximizing near-term cash flow.” More good news was revealed in the revelation that its majority owner, France’s Total, will guarantee up to $100 million of the company’s $300 million credit revolver facility. “Total is pleased that SunPower’s first quarter results were in line with its guidance,” said Julien Pouget, Senior Vice President Renewables, Total.  “In this context, by agreeing to provide SunPower access to additional liquidity over the next two years through a guarantee of up to $100 million of its revolving credit facility, Total is expressing its continued support for SunPower in the current challenging solar environment.” Looking forward, SunPower is forecasting revenue for the second quarter between $275 million and $325 million, with a gross margin of between -3% and -1%, and a net loss of between $135 million and $110 million. Check out our new 93-page EV report. Join us for an upcoming Cleantech Revolution Tour conference! Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech daily newsletter or weekly newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.


News Article | May 9, 2017
Site: globenewswire.com

ENGLEWOOD, Colo., May 09, 2017 (GLOBE NEWSWIRE) -- Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the quarter ended March 31, 2017. Key highlights for the first quarter of 2017 and key subsequent events included: Gevo produced approximately 100,000 gallons of isobutanol at its Luverne Facility during the first quarter of 2017. Consistent with Gevo’s previous isobutanol production guidance, production this quarter was focused on producing sufficient quantities of isobutanol to meet immediate customer demand while also providing enough inventory to support additional market and customer development efforts in the future. Gevo’s production goals are not to maximize production, but rather to align such production with its isobutanol sales efforts. As a result, during certain periods of the first quarter of 2017, Gevo only produced ethanol at the Luverne Facility, and in the second quarter of 2017, Gevo may elect to produce only ethanol. In the first quarter, Gevo’s isobutanol market development efforts were focused on gaining market acceptance in its core gasoline blendstock markets such as marinas and on-road gasoline fueling stations, while maintaining its targeted selling price. Gevo continued to work with its distribution partners to make investments to develop end-customer relationships, as well as to establish value chains to deliver its isobutanol to those end-customers. Gevo’s market development efforts related to its renewable hydrocarbon products were mainly targeted towards entering into binding supply agreements to underpin the economics of the proposed expansion of the Luverne Facility. Gevo has been in discussions with numerous potential alcohol-to-jet fuel (ATJ) and isooctane customers to enter into long term supply agreements, with a goal in 2017 of signing contracts representing the majority of the isobutanol production volumes to be produced at the expanded Luverne Facility. In April 2017, as noted above, Gevo entered into its first long term supply agreement with HCS, which Gevo estimates would represent approximately 10-15% of the isooctane production from an expanded Agri-Energy Facility. As Gevo develops markets for its products, there will likely be a mismatch in timing between isobutanol production and sales. As a result, at times Gevo will likely build isobutanol inventory levels.  At March 31, 2017, Gevo had approximately 288,000 gallons of isobutanol and approximately 52,000 gallons of renewable hydrocarbons in inventory. "During our year end update, we set out a number of key strategic initiatives and I am proud to say that we have made meaningful progress towards those goals. So far in 2017 we have significantly improved our balance sheet, as well as signed the exchange agreement with Whitebox that will extend the maturity of our senior debt, assuming a positive stockholder vote in June. This will provide us with additional time to pursue our strategy moving forward. As I have communicated many times, we had to clear this critical financial hurdle before we could more effectively drive customer development and better execute on our long-term expansion plan." said Dr. Patrick Gruber, Gevo’s Chief Executive Officer. Mr. Gruber continued, "As a reminder, our objective is to sell at least 50% of the capacity at the expanded Luverne facility. Although we still have significant work ahead of us, we are excited by the definitive supply agreement with HCS which is a key first step in achieving our targets. The entire Gevo organization is intensely focused on continuing our momentum throughout 2017 and beyond.” Revenues for the first quarter of 2017 were $5.6 million compared with $6.3 million in the same period in 2016. During the first quarter of 2017, revenues derived at the Luverne Facility related to ethanol sales and related products were $5.5 million, a decrease of approximately $0.3 million from the same period in 2016. This was primarily a result of lower ethanol production and distiller grain prices in the first quarter of 2017 versus the same period in 2016. During the first quarter of 2017, hydrocarbon revenues were $0.1 million, $0.2 million lower than the same period in 2016. Gevo’s hydrocarbon revenues are comprised of sales of ATJ, isooctane and isooctene. Gevo generated grant and other revenue of $32,000 during the first quarter of 2017, down $0.2 million as compared to the same period in 2016, mainly as a result of Gevo’s contract with the Northwest Advanced Renewables Alliances ending in 2016. Cost of goods sold was $9.4 million for the three months ended March 31, 2017, compared with $9.2 million in the same period in 2016. Cost of goods sold included approximately $7.9 million associated with the production of ethanol, isobutanol and related products and approximately $1.5 million in depreciation expense. Gross loss was $3.8 million for the three months ended March 31, 2017, versus $2.9 million in the same quarter in 2016. Research and development expense increased by $0.2 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily to an increase in employee-related expenses. Selling, general and administrative expense increased by $0.3 million during the three months ended March 31, 2017, compared with the same period in 2016, due primarily an increase in employee-related expenses. Loss from operations in the three months ended March 31, 2017 was $7.2 million, compared with $5.9 million in the same period in 2016. Non-GAAP cash EBITDA loss in the three months ended March 31, 2017 was $5.4 million, compared with $3.9 million in the same period in 2016. Interest expense in the three months ended March 31, 2017 was $0.7 million, down $1.4 million as compared to the same period in 2016, due to a decrease in outstanding principal balances of our debt. During the three months ended March 31, 2017, there was no change in the value of the embedded derivatives in the 2022 Notes, as the derivatives have had no meaningful value since the third quarter of 2014.  However, Gevo did incur a non-cash loss of $1.0 million in the quarter as a result of exchanging an aggregate of $8.4 million principal amount of the 2022 Notes for shares of Gevo’s common stock in January 2017. During the three months ended March 31, 2017, Gevo also incurred a non-cash loss of $0.3 million during the quarter due to the quarterly mark-to-market valuation of the 2017 Notes. During the three months ended March 31, 2017, the estimated fair value of the derivative warrant liability decreased by $3.3 million, resulting in a non-cash gain from a change in the fair value of derivative warrant liability. The net loss for the three months ended March 31, 2017 was $5.9 million, compared with $3.6 million during the same period in 2016. The non-GAAP adjusted net loss for the three months ended March 31, 2017 was $7.9 million, compared with $8.0 million during the same period in 2016. The cash position at March 31, 2017 was $20.4 million and the total principal face value of the debt outstanding was $17.7 million. Hosting today’s conference call at 4:30 p.m. EST (2:30 p.m. MST) will be Dr. Patrick Gruber, Chief Executive Officer, Mike Willis, Chief Financial Officer, and Geoff Williams, General Counsel. They will review Gevo’s financial results and provide an update on recent corporate highlights. To participate in the conference call, please dial 1(888) 771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.) and reference the access code 44704548. A replay of the call and webcast will be available two hours after the conference call ends on May 9, 2017. To access the replay, please dial 1-888-843-7419 (inside the US) or 1-630-652-3042  (outside the US) and reference the access code 44704548#. The archived webcast will be available in the Investor Relations section of Gevo's website at www.gevo.com. Gevo is a renewable technology, chemical products, and next generation biofuels company. Gevo has developed proprietary technology that uses a combination of synthetic biology, metabolic engineering, chemistry and chemical engineering to focus primarily on the production of isobutanol, as well as related products from renewable feedstocks. Gevo’s strategy is to commercialize biobased alternatives to petroleum-based products to allow for the optimization of fermentation facilities’ assets, with the ultimate goal of maximizing cash flows from the operation of those assets. Gevo produces isobutanol, ethanol and high-value animal feed at its fermentation plant in Luverne, Minnesota. Gevo has also developed technology to produce hydrocarbon products from renewable alcohols. Gevo currently operates a biorefinery in Silsbee, Texas, in collaboration with South Hampton Resources Inc., to produce ATJ, octane, and ingredients for plastics like polyester. Gevo has a marquee list of partners including The Coca-Cola Company, Toray Industries Inc. and Total SA, among others. Gevo is committed to a sustainable bio-based economy that meets society’s needs for plentiful food and clean air and water. Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, including, without limitation, statements related to the ability of Gevo to develop markets for its products, Gevo’s ability to enter into binding offtake, sales or supply agreements for its products, Gevo’s ability to produce isobutanol or related hydrocarbon products at its Luverne Facility, Gevo’s ability to finance, construct and operate the contemplated expanded Luverne Facility, Gevo’s 2017 operational and financial targets and milestones, Gevo’s cash operating and financing expectations, the supply agreement with HCS Holding, stockholder approval of the Exchange and the issuance of the 2020 Notes, the Purchase Agreement, Gevo’s ability to secure new customer relationships across core markets, and other statements that are not purely statements of historical fact.  These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2016, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo. This press release contains financial measures that do not comply with U.S. generally accepted accounting principles (GAAP), including non-GAAP Cash EBITDA Loss and non-GAAP Adjusted Net Loss Per Share. Non-GAAP Cash EBITDA Loss excludes non-cash items such as depreciation and stock-based compensation. Non-GAAP Adjusted Net Loss Per Share excludes non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of Gevo’s financial instruments, such as warrants, convertible debt and embedded derivatives. Management believes these measures are useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management's internal comparisons to Gevo’s historical performance as well as comparisons to the operating results of other companies. In addition, Gevo believes these non-GAAP financial measures are useful to investors because they allow for greater transparency into the indicators used by management as a basis for its financial and operational decision making. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Gevo’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided in the financial statement tables below. On December 21, 2016, our Board of Directors approved a reverse split of our common stock, par value $0.01, at a ratio of one-for-twenty.  This reverse stock split became effective on January 5, 2017 and, unless otherwise indicated, all share amounts, per share data, share prices, exercise prices and conversion rates set forth in this press release and the accompanying consolidated financial statements have, where applicable, been adjusted to reflect this reverse stock split. 1 Adjusted Net Loss Per Share is calculated by adding back non-cash gains and/or losses recognized in the quarter due to the changes in the fair value of certain of our financial instruments, such as warrants, convertible debt and embedded derivatives; a reconciliation of Adjusted Net Loss Per Share to GAAP net loss per share is provided in the financial statement tables following this release. 2 Cash EBITDA Loss is calculated by adding back depreciation and non-cash stock compensation to GAAP loss from operations; a reconciliation of Cash EBITDA Loss to GAAP loss from operations is provided in the financial statement tables following this release. Gevo, Inc. Condensed Consolidated Statements of Operations Information (Unaudited, in thousands, except share and per share amounts) Gevo, Inc. Reconciliation of GAAP to Non-GAAP Financial Information (Unaudited, in thousands)


News Article | May 11, 2017
Site: www.renewableenergyworld.com

AVANGRID Inc. subsidiary Avangrid Renewables has acquired a 50 percent ownership stake in Vineyard Wind, the offshore wind energy developer that is part of the Copenhagen Infrastructure Partners portfolio.


News Article | April 3, 2017
Site: www.theguardian.com

A surge in the use of wind and solar energy helped Europe to cut its fossil fuel consumption and greenhouse gas emissions by about 10% in 2015, an authoritative new report has found. Energy use from renewables rose to 16.7% of Europe’s total, up from 15% in 2013, and accounted for 77% of the continent’s new power capacity. But the clean energy burst is still not moving fast enough to prevent a “lock-in” of already-commissioned fossil fuel capacity, which will otherwise transform into stranded assets. It was also unevenly spread across Europe, with renewables expanding to take up 30% of the power load in many Scandinavian countries, but only 5% in Malta. The UK had Europe’s seventh best record for the intensity of its greenhouse gasemissions, but was a mid-table performer in terms of emissions per capita, according to figures compiled by the European Environment Agency (EEA). Mihai Tomescu, who authored the EEA study, said Europe’s renewable roll-out was accelerating, but not fast enough to halt global warming at 2C. “The current level of effort needs to be stepped up and this is not necessarily going to happen without additional focus,” he told the Guardian. The EEA’s report suggests that the EU is broadly on track to achieve its goals of 20% emissions cuts and 20% renewable energy share by 2020. But a more challenging target for 2050 – of reducing emissions by at least 80% – will require acceleration after 2030, when tough decisions about phasing out internal combustion engines and oil supplies will have to be taken. James Watson, the chief executive of SolarPower Europe, which represents Europe’s solar photovoltaic industry, said that today’s figures were in line with a 50GW spike in global solar capacity last year. “This is a good start and we must be positive about that but if we are truly to meet our obligations under the Paris agreement, we will need to see a much faster growth of renewables and a commensurate, much faster reduction of fossil fuels, and coal power in particular,” he said. Renewables have replaced 100m tonnes of oil equivalent electricity generation this decade, but will only need to replace 20m tonnes in the 10 years ahead, according to SolarPower Europe’s analysis. Tomescu noted that Europe’s growth in renewable energy was already coinciding with a drop in fossil fuel consumption. “In broad terms, we are talking about a substitution and this has an impact not only on import dependency but also avoided greenhouse gas emissions,” he said.


News Article | May 11, 2017
Site: www.prweb.com

The award-wining low carbon industrial heat pump technology contractor, Star Renewable Energy, will share their knowledge of renewable water source heat pumps at the EuroHeat & Power Congress 2017 in Glasgow. The EHP Congress is an internationally renowned event attended by the biggest names in the energy industry from around the world. Taking place at the SECC in Glasgow from 14-17 May 2017, the event programme includes a business exhibition, conferences, dialogue sessions and keynote speeches. Star Renewable Energy’s Dave Pearson will be speaking twice at the congress – once to present the case for heat pumps and district heating, and also on behalf of Scottish Renewables to discuss industry opportunities in Scotland. Dave Pearson, Director of Star Renewable Energy said, “The EuroHeat & Power Congress is a significant event for our industry and will be attended by the most active players in the renewable sector as well as large industrial energy users. It’s a fantastic opportunity to promote renewable heating and get the word out about the success of Star’s higher temperature heat pump projects for retrofit into residential, district heating and industrial process applications.” The low carbon heat sector is beginning to see positive growth in the UK, and it is encouraging that this year’s EPH Congress is held in Glasgow – where SRE is based-. Mr Pearson’s first talk titled ‘Heat Pumps and DH: The Perfect Partnership’ will showcase the company’s groundbreaking heat pumps which provide a renewable source of heating for large capacities. The second presentation will focus on exploring progressing projects and opportunities in Scotland following the Scottish Government’s draft Energy Strategy released in March. The congress schedule takes place over four days and includes a variety of learning opportunities and social exchanges. From keynote speeches and dialogue sessions to award ceremonies and whisky tasting evenings, Euroheat 2017 looks set to be one of the most exciting industry events of the year. Pearson added, “I’m also looking forward to welcoming the international guests with a dram of malt whisky at the gala event”. Euroheat & Power is a non-profit organisation creating an international network for district energy. It promotes sustainable heating and cooling innovations and brings together research bodies, universities, business and industry associations from over 30 countries worldwide. The 38th Euroheat & Power Congress will take place on 14-17 May at SECC Glasgow. To register for Star Renewable Energy talks at the EuroHeat & Power Congress 2017 visit the website at http://www.ehpcongress.org To find out more about Star Renewable Energy and the company’s revolutionary water heat pumps, go to http://www.neatpumps.com


News Article | May 12, 2017
Site: www.prnewswire.com

Set in 2016 as part its broader 2025 Agenda, the new climate goal takes into account PepsiCo's direct operations, owned-fleet fuel use and purchased electricity, which account for approximately 7% of the company's total carbon footprint. Importantly, however, the goal also includes the 93% of PepsiCo's carbon footprint that emanates from sources outside PepsiCo direct operations, such as farming, packaging, third-party transportation and consumer use of its products. To date, 44 companies worldwide have had their climate targets validated by the Science Based Targets Initiative, a partnership between CDP, the World Resources Institute, the World Wide Fund for Nature and the UN Global Compact, with over 200 more companies awaiting validation. "The Paris Climate Agreement that entered into force in April 2016 set out the obligation for collective action to limit the impact of climate change," said Dr. Mehmood Khan, PepsiCo Vice Chairman and Chief Scientific Officer, Global Research and DevelopmentGlobal Research and Development. "We believe combating climate change is critical to the future of our company, our customers, consumers and our world.  Our new target represents a meaningful and measurable contribution to meeting the two degree global goal. Such rigor is now a requirement of any responsible business." Cynthia Cummis, Director of Private Sector Climate Mitigation at the World Resources Institute and a member of the Science Based Targets Initiative Steering Committee, said: "The threat of climate change calls for governments and businesses to commit to science-based action. We congratulate PepsiCo on their science-based target. By seeking to decarbonize its value chain, the company is showing leadership within the food and agriculture sector and strengthening its competitive advantage in the transition to the low-carbon economy." PepsiCo will work to reduce its GHG emissions by: Among new actions already underway, PepsiCo has joined the Business Renewables Center at the Rocky Mountain Institute and signed on to the Renewable Energy Buyers Principles, which were developed by leading NGOs and set out the future purchasing expectations of large companies regarding renewable energy in the United States. These actions are informing PepsiCo's renewable energy procurement strategy. PepsiCo products are enjoyed by consumers one billion times a day in more than 200 countries and territories around the world. PepsiCo generated approximately $63 billion in net revenue in 2016, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales. At the heart of PepsiCo is Performance with Purpose – our fundamental belief that the success of our company is inextricably linked to the sustainability of the world around us. We believe that continuously improving the products we sell, operating responsibly to protect our planet and empowering people around the world is what enables PepsiCo to run a successful global company that creates long-term value for society and our shareholders. For more information, visit www.pepsico.com. The Science Based Targets initiative champions science-based target setting as a powerful way of boosting companies' competitive advantage in the transition to the low-carbon economy. It is a collaboration between CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC) and one of the We Mean Business Coalition commitments. The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies' targets." For a full list of companies that have committed to set science-based targets visit www.sciencebasedtargets.org/companies-taking-action To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pepsico-embraces-science-based-targets-in-the-fight-against-climate-change-300456475.html


HOUSTON--(BUSINESS WIRE)--Renewable Power Direct, the national green energy marketer, has structured a third renewable electricity agreement for Iron Mountain Incorporated (NYSE: IRM), a leading provider of storage and information management services. The new transaction, which will supply a portion of Iron Mountain’s current electric needs in Pennsylvania and New Jersey, builds on two earlier supply deals that RPD has handled for Iron Mountain in Texas and the Mid-Atlantic states during the past 12 months. RPD’s renewable retail supply model complements an array of sustainability strategies utilized by Iron Mountain to meet their corporate goals, which include PPAs and On-site Solar. RPD’s innovative supply model layers in a “green block” of wholesale energy under the current terms of their existing retail electric supply agreement, sourcing the physical energy from EDP Renewable’s Meadow Lake Windfarm III in Indiana. EDP Renewables also provides Iron Mountain with renewable energy credits for meeting their corporate sustainability goals. Mark Mancino, RPD’s Vice-President of Sales, commented, “We are happy to be working in collaboration with Iron Mountain, their retail supplier and their energy consultant to provide another cost-effective solution to meet applications that call for shorter supply terms and discrete volumes matching Iron Mountain’s specific needs.” “One of the first challenges of our sustainable energy strategy is finding ways to beat the conventional wisdom that growing our business means bigger environmental impacts,” said Kevin Hagen, director of corporate responsibility at Iron Mountain. “Renewable Power Direct is invaluable in helping us find innovative ways to reduce our climate and environmental impacts.” About Iron Mountain Iron Mountain Incorporated (NYSE: IRM) is a leading provider of storage and information management services. The company’s real estate network of more than 69 million square feet across more than 1,100 facilities in 37 countries allows it to serve customers around the world. And its solutions for records management, data management, document management, and secure shredding help organizations to lower storage costs, comply with regulations, recover from disaster, and better use their information. Founded in 1951, Iron Mountain stores and protects billions of information assets, including business documents, backup tapes, electronic files and medical data. Visit www.ironmountain.com for more information. About Renewable Power Direct, LLC RPD is a unique U.S. renewable energy marketer serving corporate and industrial buyers. It is the only supplier offering variable term (2-7 year), fractional physical capacity (plus RECs) from utility-scale wind and solar facilities. Blocks of energy capacity may be purchased in 1 MW or greater increments. Fortune 500 energy buyers have chosen these contracts for green data centers, production facilities and corporate headquarters from California (CAISO) to Texas (ERCOT) to the Mid-Atlantic (PJM). RPD’s national sales team is based in Houston; the company also has offices in Washington D.C. For more information visit www.renewablepowerdirect.com.


News Article | May 9, 2017
Site: www.prnewswire.com

Adjusted diluted EPS excludes the impact of certain items included in GAAP reported diluted EPS. Amounts excluded from adjusted diluted EPS are primarily costs to achieve the Piedmont Natural Gas merger. Adjusted diluted EPS for the first quarter of 2017 was lower than the prior year, primarily due to the absence of International Energy, which was sold in December 2016, and warm winter weather. Partially offsetting these drivers were the contributions of Piedmont Natural Gas and favorable operations and maintenance (O&M) expense at Electric Utilities and Infrastructure. Based upon the results through the first quarter, the company remains on track to achieve its 2017 adjusted diluted earnings guidance range of $4.50 to $4.70 per share. "We have a compelling strategy to deliver value to our stakeholders, and we are making good progress against our plan," said Lynn Good, Duke Energy chairman, president and CEO, "We recently announced Power/Forward Carolinas, our 10-year grid modernization plan in North Carolina. This program and others like it will not only strengthen the energy grid, but will also stimulate economic development and job growth in our communities and provide additional benefits for our customers." "Our ongoing investments drove solid growth in our electric and gas utilities in the quarter, and we are responding to warm winter weather through disciplined cost management and operational efficiency. We remain on-track for 2017 and have affirmed our full-year guidance range." In addition to the following summary of first quarter 2017 business segment performance, a comprehensive table with detailed earnings per share drivers for the first quarter 2017, compared to prior year, is provided on page 17. The discussion below of the first quarter results includes both GAAP segment income and adjusted segment income, which is a non-GAAP financial measure. The tables on pages 8 and 9 present a reconciliation of GAAP reported results to adjusted results. Due to the Piedmont acquisition and the sale of International Energy in the fourth quarter of 2016, Duke Energy's segment structure has been realigned to include the following segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure and Commercial Renewables. The remainder of Duke Energy's operations is presented as Other. Other now includes the results of National Methanol Company (NMC), previously included in the International Energy segment. Prior periods have been recast to conform to the current segment structure. On a reported and adjusted basis, Electric Utilities and Infrastructure recognized first quarter 2017 segment income of $635 million, compared to $664 million in the first quarter of 2016, a decrease of $0.03 per share, excluding share dilution of $0.02 cents per share. Lower quarterly results at Electric Utilities and Infrastructure were primarily driven by warm winter weather compared to the prior year (-$0.14 per share), across all jurisdictions. This unfavorable driver was partially offset by: Gas Utilities and Infrastructure recognized first quarter 2017 reported and adjusted segment income of $133 million, compared to $32 million in the first quarter of 2016, an increase of $0.14 per share. Higher quarterly results at Gas Utilities and Infrastructure were primarily driven by: On a reported and adjusted basis, Commercial Renewables recognized first quarter 2017 segment income of $25 million, compared to $26 million in the first quarter of 2016. Higher earnings from new wind projects brought on-line in late 2016 (+$0.01 per share) were offset by lower solar ITCs in the current year (-$0.01 per share). Other primarily includes corporate interest expense not allocated to the business units, results from Duke Energy's captive insurance company, and other investments including NMC, an equity method investment. On a reported basis, Other recognized first quarter 2017 net expense of $77 million, compared to net expense of $148 million in the first quarter of 2016. In addition to the drivers outlined below, quarterly results were impacted by lower costs to achieve mergers and charges related to cost savings initiatives in the prior year. These charges were treated as special items and therefore excluded from adjusted earnings. On an adjusted basis, Other recognized first quarter 2017 adjusted net expense of $67 million, compared to adjusted net expense of $62 million in the first quarter of 2016, a decrease of $0.01 per share. Lower quarterly results at Other were driven by higher interest expense at the holding company, primarily resulting from the Piedmont Natural Gas acquisition financing (‑$0.02 per share), partially offset by higher earnings from NMC (+$0.01 per share). Duke Energy's consolidated reported effective tax rate for first quarter 2017 was 32.4 percent, compared to 30.4 percent in the first quarter of 2016. The consolidated adjusted effective tax rate for first quarter 2017 was 32.5 percent, compared to 25.6 percent in 2016. Adjusted effective tax rate is a non-GAAP financial measure. The tables on pages 10 and 11 present a reconciliation of the GAAP reported effective tax rate to the adjusted effective tax rate. Duke Energy's first quarter 2016 Income from Discontinued Operations includes the operating results of the International Disposal Group of $117 million, which were included in adjusted earnings. An earnings conference call for analysts is scheduled from 10 to 11 a.m. ET today to discuss the first quarter 2017 financial results and other business and financial updates. The conference call will be hosted by Lynn Good, chairman, president and chief executive officer, and Steve Young, executive vice president and chief financial officer. The call can be accessed via the investors' section (http://www.duke-energy.com/investors/) of Duke Energy's website or by dialing 877-675-4757 in the United States or 719-325-4760 outside the United States. The confirmation code is 9134940. Please call in 10 to 15 minutes prior to the scheduled start time. A replay of the conference call will be available until 1 p.m. ET, May 19, 2017, by calling 888-203-1112 in the United States or 719-457-0820 outside the United States and using the code 9134940. An audio replay and transcript will also be available by accessing the investors' section of the company's website. The following table presents a reconciliation of GAAP reported to adjusted diluted EPS for first quarter 2017 and 2016 financial results: Management evaluates financial performance in part based on non-GAAP financial measures, including adjusted earnings and adjusted diluted EPS. Adjusted earnings and adjusted diluted EPS represent income from continuing operations attributable to Duke Energy, adjusted for the dollar and per share impact of special items. As discussed below, special items represent certain charges and credits which management believes are not indicative of Duke Energy's ongoing performance. Management believes the presentation of adjusted earnings and adjusted diluted EPS provides useful information to investors, as it provides them with an additional relevant comparison of Duke Energy's performance across periods. Management uses these non-GAAP financial measures for planning and forecasting and for reporting financial results to the Duke Energy Board of Directors, employees, stockholders, analysts and investors. Adjusted diluted EPS is also used as a basis for employee incentive bonuses. The most directly comparable GAAP measures for adjusted earnings and adjusted diluted EPS are Net Income Attributable to Duke Energy Corporation (GAAP Reported Earnings) and Diluted EPS Attributable to Duke Energy Corporation common stockholders (GAAP Reported EPS), respectively. Special items included in the periods presented include the following items which management believes do not reflect ongoing costs: Adjusted earnings also include operating results of the International Disposal Group, which have been classified as discontinued operations. Management believes inclusion of the operating results of the Disposal Group within adjusted earnings and adjusted diluted EPS results in a better reflection of Duke Energy's financial performance during the period. Due to the forward-looking nature of any forecasted adjusted earnings guidance, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project all special items for future periods (such as legal settlements, the impact of regulatory orders, or asset impairments). Management evaluates segment performance based on segment income and other net expense. Segment income is defined as income from continuing operations attributable to Duke Energy. Segment income includes intercompany revenues and expenses that are eliminated in the Consolidated Financial Statements. Management also uses adjusted segment income as a measure of historical and anticipated future segment performance. Adjusted segment income is a non-GAAP financial measure, as it is based upon segment income adjusted for special items, which are discussed above. Management believes the presentation of adjusted segment income provides useful information to investors, as it provides them with an additional relevant comparison of a segment's performance across periods. The most directly comparable GAAP measure for adjusted segment income or adjusted other net expense is segment income and other net expense. Due to the forward-looking nature of any forecasted adjusted segment income or adjusted other net expense and any related growth rates for future periods, information to reconcile these non-GAAP financial measures to the most directly comparable GAAP financial measures is not available at this time, as the company is unable to forecast all special items, as discussed above. Duke Energy's adjusted earnings, adjusted diluted EPS, and adjusted segment income may not be comparable to similarly titled measures of another company because other companies may not calculate the measures in the same manner. Headquartered in Charlotte, N.C., Duke Energy is one of the largest energy holding companies in the United States. Its Electric Utilities and Infrastructure business unit serves approximately 7.5 million customers located in six states in the Southeast and Midwest. The company's Gas Utilities and Infrastructure business unit distributes natural gas to approximately 1.6 million customers in the Carolinas, Ohio, Kentucky and Tennessee. Its Commercial Renewables business unit operates a growing renewable energy portfolio across the United States. Duke Energy is a Fortune 125 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available at duke-energy.com. The Duke Energy News Center serves as a multimedia resource for journalists and features news releases, helpful links, photos and videos. Hosted by Duke Energy, illumination is an online destination for stories about people, innovations, and community and environmental topics. It also offers glimpses into the past and insights into the future of energy. This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions and can often be identified by terms and phrases that include "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "guidance," "outlook" or other similar terminology. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These factors include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, including costs of compliance with existing and future environmental requirements or climate change, as well as rulings that affect cost and investment recovery or have an impact on rate structures or market prices; the extent and timing of costs and liabilities to comply with federal and state laws, regulations and legal requirements related to coal ash remediation, including amounts for required closure of certain ash impoundments, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts associated with coal ash impoundment retirement obligations and costs related to significant weather events, and to earn an adequate return on investment through the regulatory process; the costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more extensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; costs and effects of legal and administrative proceedings, settlements, investigations and claims; industrial, commercial and residential growth or decline in service territories or customer bases resulting from variations in customer usage patterns, including energy efficiency efforts and use of alternative energy sources, including self-generation and distributed generation technologies; federal and state regulations, laws and other efforts designed to promote and expand the use of energy efficiency measures and distributed generation technologies, such as private solar and battery storage, in Duke Energy's service territories could result in customers leaving the electric distribution system, excess generation resources as well as stranded costs; advancements in technology; additional competition in electric and gas markets and continued industry consolidation; the influence of weather and other natural phenomena on operations, including the economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and tornadoes, including extreme weather associated with climate change; the ability to successfully operate electric generating facilities and deliver electricity to customers including direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid or generating resources; the ability to complete necessary or desirable pipeline expansion or infrastructure projects in our natural gas business; operational interruptions to our gas distribution and transmission activities; the availability of adequate interstate pipeline transportation capacity and natural gas supply; the impact on facilities and business from a terrorist attack, cybersecurity threats, data security breaches, and other catastrophic events such as fires, explosions, pandemic health events or other similar occurrences; the inherent risks associated with the operation and potential construction of nuclear facilities, including environmental, health, safety, regulatory and financial risks, including the financial stability of third party service providers; the timing and extent of changes in commodity prices and interest rates and the ability to recover such costs through the regulatory process, where appropriate, and their impact on liquidity positions and the value of underlying assets; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuations and general economic conditions; the credit ratings may be different from what the company and its subsidiaries expect; declines in the market prices of equity and fixed income securities and resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans, and nuclear decommissioning trust funds; construction and development risks associated with the completion of Duke Energy and its subsidiaries' capital investment projects, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner or at all; changes in rules for regional transmission organizations, including changes in rate designs and new and evolving capacity markets, and risks related to obligations created by the default of other participants; the ability to control operation and maintenance costs; the level of creditworthiness of counterparties to transactions; employee workforce factors, including the potential inability to attract and retain key personnel; the ability of subsidiaries to pay dividends or distributions to Duke Energy Corporation holding company (the Parent); the performance of projects undertaken by our nonregulated businesses and the success of efforts to invest in and develop new opportunities; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; substantial revision to the U.S. tax code, such as changes to the corporate tax rate or a material change in the deductibility of interest; the impact of potential goodwill impairments; the ability to successfully complete future merger, acquisition or divestiture plans; and the ability to successfully integrate the natural gas businesses following the acquisition of Piedmont Natural Gas Company, Inc. and realize anticipated benefits. Additional risks and uncertainties are identified and discussed in Duke Energy's and its subsidiaries' reports filed with the SEC and available at the SEC's website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than described. Forward-looking statements speak only as of the date they are made; Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/duke-energy-reports-first-quarter-2017-financial-results-300453645.html

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