Shares of Gevo (GEVO) continue to surge as President Biden prepares a green energy and infrastructure bill.
Gevo particularly operates in the renewable fuels space. The company commercializes jet fuel, diesel and gasoline to achieve zero-carbon emissions addressing the market need of reducing greenhouse gas emissions with sustainable alternatives.
What Gevo’s earnings report says about its business
The company came out with a quarterly loss of $0.05 per share with the quarterly report represents an earnings surprise of -25%. Gevo Shares have added about 18.1% since the beginning of the year versus the S&P 500’s gain of 8.2%.
Cost of goods sold was $2.0 million for the three months ended March 31, 2023, compared with $8.1 million in the same period in 2020, primarily as a result of terminating ethanol production due to COVID-19 and in response to an unfavorable commodity environment.
Cost of goods sold included approximately $0.9 million associated with the maintenance of the Luverne Facility and approximately $1.1 million in depreciation expense for the three months ended March 31, 2023.
Gevo could surge under the Biden-Harris presidency
We all know that Biden has revealed a bill that would take into concern greenhouse gas emissions and American infrastructure, one thing to note is that GEVO co-founder Frances Arnold has been elected to serve under Biden’s Science Team. The Science Team is tasked with marshaling the force of science to drive meaningful progress in the lives of people and will help the Biden-Harris presidency address the biggest crises and challenges of our time, including climate change.
Biden could be looking to spend billions on these efforts and I would not be surprised if Gevo received some government grant to improve efforts of reducing our carbon emissions.