KiOR announces 2011 financial results, location of second plant
Kior Inc. has announced financial results for the fiscal year (FY) 2011. During a conference call discussing the results, KiOR President and CEO Fred Cannon also addressed the status of his company’s first commercial plant, which is under development in Columbus, Miss. He also noted that KiOR’s next project will be located in Natchez, Miss., rather than Newton, Miss.
“During the fourth quarter we made significant progress toward bringing our first-in-kind Columbus plant on line on schedule and on budget,” Cannon said. “Today, the construction stands at over 75 percent complete, and we remain on target to meet our goal of first production in the second half of the year.”
Cannon continued by noting that KiOR has made several advancements in research and development that have impacted the company’s conversion, recovery and upgrading process. While it would be premature to quantify these improvements in terms of gallons of yield improvement at this time, he said, the advancements have given KiOR confidence they are making strides to increase yields beyond its baseline of 67 gallons per ton.
As work nears completion on the Columbus facility, Cannon said that the site selection process for his company’s next project is complete. That project, which is slated to be located in Natchez, will be comprised of a fuel conversion unit that can convert 1,500 tons of feedstock into 120,000 gallons of fuel per day. In addition, Cannon noted that the site will also feature a centralized fuel upgrader. While the project had formerly been referred to as the Newton project, Cannon said logistical, infrastructure and other considerations made Natchez the better choice at this time. However, he also noted that KiOR is continuing to work to develop a project in Newton, which is slated to have the same capacity as the Natchez plant.
Regarding financial results for FY 2011, KiOR has posted a net loss of $64.1 million, or 87 cents per share. This is an increase over the $45.0 million, 56 cent per share loss reported for FY 2010. In its financial report, KiOR reported that it did not recognize any revenue during FY 2011, as its activities were focused on construction and research and development. Overall, research and development expenses for FY 2011 were reported at $31.7 million.