Clean Energy Fuels Corp. (CLNE) rose 15% in Wednesday’s trade to $13.59 despite a weak quarterly report. The growth was driven by the news of a promising partnership with oil and gas company BP plc (NYSE: BP).
Even though the report shows a negative dynamic, the Clean Energy Fuels share price rose. With the support of BP, the company announced plans to build and operate facilities for renewable natural gas on farms. A total of $50 million will be allocated byBP to deploy appropriate agricultural technologies in various countries.
Revenue from Clean Energy Fuels dropped 37.3 percent year-over-year in the fourth quarter of 2020, to $75 million. As a result of COVID-19, the tax incentives for renewable fuels decreased substantially and reduced fuel supplies to 7%. Loss per share was $0.01, or $ 2.6 million. Although renewable fuels like biogas and ethanol still operate heavily on subsidies and incentives, interest is still high in some places.
Many states in the United States consider renewable natural gas to be a zero-carbon fuel. It is therefore important for the recipient of benefits from such fuels to produce low-profit agricultural products.
Clean Energy Fuels Corp. (CLNE) is trying to up the ante in the biofuels market by creating a competitive offering of renewable natural gas. This will take some time. Currently, the company is seeking loans, partnering with funds, and building relevant technologies. The Clean Energy Fuel business segment could be highly profitable, with long-term growth prospects.
CLNE stock has increased 72.90% in the year-to-date period and has moved up 15.17% or $1.79 in the latest trading session. However, the stock’s annualized performance is nearly 572.77% higher. Compared to the trailing three-month period, the stock is up 222.80% and 72.90% YTD. CLNE performance is 10.85% during the week and -23.95% overall for the month.