Clean Energy Fuels Corp. (CLNE) witnessed a sharp decline of 12.62% in its stock price on November 7, 2024, as the company's third-quarter results failed to meet market expectations, and regulatory uncertainties clouded its future outlook.
For the third quarter of 2024, CLNE reported a revenue of $104.9 million, down from $125.7 million in the same period last year. The company's net loss widened to $18.2 million, or $0.08 per share, compared to a net loss of $25.8 million, or $0.12 per share, a year earlier. While CLNE saw a 5.1% increase in renewable natural gas (RNG) gallons sold, the revenue decline was attributed to lower underlying natural gas commodity prices and higher operational costs associated with new RNG production projects.
Despite the challenges, CLNE continued to make progress in expanding its RNG production and fueling station network, including the introduction of the Cummins X15N engine, which is expected to drive additional fuel volumes at its stations. However, these initiatives were not enough to offset concerns surrounding regulatory changes and the expiration of certain tax credits, such as the Alternative Fuel Tax Credit, which could impact the company's financial performance in 2025.
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