Company releases Q3 and Q4 earnings guidance
(PublicWire.com Press Release) — COLDSPRING, TX – BenchMark Energy Corporation (OTC Pink:BMRK) began providing earnings guidance for its third and fourth quarter earnings based upon contractual agreements for glycerin purchase and delivery.
“BenchMark [Energy Corporation’s] revenue has recovered significantly from the second quarter, reflecting management’s efforts to build a solid operational foundation. We transacted purchases and sales for 160,000 gallons in the third quarter and 1,500,000 gallons for the fourth quarter, equating to 4.5% of the expected domestic U.S. glycerin supply of 130 million gallons,” said BenchMark Energy Corporation’s CEO Mark Bateman.
***Including the previously announced Chinese contract, the Company has contractual commitments to sell at least 504,000 gallons monthly starting in the fourth quarter 2013 and continuing throughout 2014. This means that the Company would account for 6 million gallons of the domestic U.S. glycerin supply, or approximately five percent (5%) of the supply using expected 2013 domestic output.***
• Forecasted transaction volume based upon signed and scheduled contractual deliveries are:
2013 Q3 160,000 gallons
2013 Q4 1,500,000 gallons
The Company’s historical transaction volumes are:
2012 FY 480,000 gallons (annual)
2013 Q1 36,000 gallons
2013 Q2 84,000 gallons
• Revenues – Anticipated to be $250,000 to $300,000 for the third quarter, and $1,000,000 to $1,100,000 for the fourth quarter 2013.
• Earnings per share – Anticipated loss of $0.01 to $0.02 per share for the third quarter, and a profit of $0.01 per share for the fourth quarter 2013
• Capitalization – 24,297,121 Common Stock undiluted shares outstanding per its second quarter disclosure on OTC Markets’ website.
The Glycerin Market
The personal care products sector is the largest application for refined glycerin
Wider demand for refined glycerin is being driven by healthy buying in the personal care sector and new chemical routes to monopropylene glycol (MPG), where refined glycerin can be a feedstock, by increased use in the antifreeze markets and by new and evolving uses in heat transfer systems, sources have said.
The increase in demand is being discussed as about 50m-100m lb/year, although various players’ estimates differ. The personal care products sector is the largest application for refined glycerin, growing at 3%/year alongside the appetite of “baby boomers” for skin-care creams as the generation nears retirement age.
Additionally, new end-use in engine coolants are gaining attention and offering demand growth estimated by industry participants to be as much as 10m lb of new consumption by the end of 2013.
A set of specification standards for a glycerin grade to be used in engine coolants has been ratified by the ASTM International (formerly known as the American Society for Testing and Materials), market sources confirmed in the third quarter of 2012.
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Specific risks include the impact of the biodiesel production industry and changes in governmental regulation that could affect the Company’s industry and operating margins. We are reliant on certain strategic raw materials for our operations and that may affect our ability to adapt to changing market conditions. Additionally, our success may depend upon our ability to manage our growing and changing operations. Confidentiality agreements with employees and others may not adequately prevent disclosure of trade secrets and other proprietary information. Strategic relationships on which we may rely are subject to change.