Darling Ingredients Inc. reports developments in its global ingredients and renewable energy business, which collects animal agriculture and food-industry residuals and converts them into feed ingredients, food ingredients, collagen products, fats, fertilizers, renewable fuels, biogas and energy products.
Recurring company news includes quarterly and annual results, segment performance, updates on the Diamond Green Diesel renewable fuels joint venture, production tax credit sales, portfolio realignment, capital spending, debt and liquidity, investor-day strategy, and board governance matters.
Darling Ingredients Inc. (NYSE: DAR) announced that its joint venture Diamond Green Diesel (DGD) will supply sustainable aviation fuel (SAF) to Chicago Midway International Airport. The two-year agreement involves Valero Marketing and Supply Company and Southwest Airlines Co. (NYSE: LUV). Southwest will purchase a minimum of 3.6 million gallons of neat SAF, with an option to buy up to 25 million gallons.
The SAF, produced from waste-based feedstocks, is expected to reduce lifecycle greenhouse gas emissions by up to 80% compared to conventional jet fuel. It will be certified by a CORSIA-approved Sustainability Certification Scheme. The DGD Port Arthur plant will be able to upgrade about 50% of its 470 million gallon annual production capacity to SAF by Q4 2024, potentially making DGD one of the world's largest SAF manufacturers.
Darling Ingredients Inc. (NYSE: DAR) has introduced Nextida™ GC, a new collagen peptide designed to reduce post-meal glucose spikes in healthy individuals. A clinical trial conducted by Darling's brand Rousselot showed that a 5-gram or 10-gram dose taken 30 minutes before a meal significantly lowered post-meal glucose spike by an average of 42%.
CEO Randall C. Stuewe stated that Darling Ingredients has discovered a way to use natural collagen for targeted health benefits through a proprietary process. Nextida GC is the first of many collagen-based solutions with targeted health benefits that the company is developing. The company continues to demonstrate how collagen can be effectively used to target common health and wellness benefits, with patents pending on their scientific work.
Darling Ingredients Inc. (NYSE: DAR) has announced that its joint venture, Diamond Green Diesel (DGD), will provide the first regular supply of sustainable aviation fuel (SAF) to Florida through an agreement between World Fuel and DHL Express. Over a two-year period, World Fuel Services will deliver approximately 60 million gallons of blended SAF, including 18 million gallons of neat SAF, produced by DGD from used cooking oil and food waste.
The SAF will have at least 80% lower lifecycle greenhouse gas emissions compared to conventional jet fuel and will be used for DHL Express's GoGreen Plus emission-reduced air transportation services. DGD's Port Arthur plant is expected to be capable of upgrading about 50% of its 470 million gallon annual production capacity to SAF by the fourth quarter of 2024, potentially making it one of the largest SAF manufacturers globally.
Darling Ingredients Inc. (NYSE: DAR) has elected Randy Hill to its board of directors as an independent director, effective immediately. Hill will serve on the board's sustainability and audit committees. With his extensive background in financial services and experience advising companies with global operations, Hill is expected to provide valuable insights into complex financial analysis and global reporting for Darling Ingredients' multifaceted business.
Hill is currently a partner at Opportune LLP, a business advisory firm. He previously held various roles at KPMG, including Audit Partner-in-Charge of the Dallas office. His expertise spans corporate governance, mergers and acquisitions, complex audit and accounting matters, IPOs, and capital market transactions.
Darling Ingredients (NYSE: DAR) has announced a target to reduce Scope 1 and 2 emissions by 42% by 2030, aligning with its commitment to the Science Based Targets initiative (SBTi). This goal is highlighted in the company's 2023 Sustainability Progress Report, which outlines key environmental, social, and governance achievements.
Notable accomplishments in 2023 include:
- Disclosure of Scope 3 emissions inventory from Forest, Land and Agriculture sources
- Construction of a new Sustainable Aviation Fuel unit at the Diamond Green Diesel joint venture
- Increased representation of women in senior management
- Continued partnership with FFA, donating over $270,000
- Proactive mapping of biodiversity risks across U.S. operations
Darling Ingredients plans to submit Scope 1, 2, and 3 targets to SBTi for validation by the end of 2024, as part of its aspiration to achieve net zero emissions by 2050.
Darling Ingredients Inc. (NYSE: DAR) announced the retirement of long-time board member Michael E. Rescoe. Rescoe served on the board from 2011 to 2014 and again from 2017 until his recent retirement. Chairman and CEO Randall C. Stuewe praised Rescoe's contributions, highlighting his role in transforming the company and expanding its global footprint. Rescoe's diverse experience across finance, energy, technology, development, and manufacturing sectors was instrumental in guiding Darling Ingredients through significant growth in various business initiatives during his tenure.
Darling Ingredients Inc. (NYSE: DAR) reported Q2 2024 net income of $78.9 million, or $0.49 per diluted share, down from $252.4 million in Q2 2023. Net sales decreased to $1.5 billion from $1.8 billion year-over-year. The decline was primarily due to lower fat prices and reduced earnings from Diamond Green Diesel (DGD). Combined adjusted EBITDA was $273.6 million, compared to $508.3 million in Q2 2023.
Key highlights:
- DGD sold 311.5 million gallons of renewable diesel at $0.49/gallon EBITDA
- Received $77.1 million cash dividend from DGD
- Repurchased $29.2 million of common stock
- Reaffirmed FY2024 guidance of $1.3-$1.4 billion combined adjusted EBITDA
The company remains focused on debt reduction and margin improvement through cost-cutting measures.
Darling Ingredients (NYSE: DAR) will release its Q2 2024 financial results on July 25, 2024, followed by a conference call at 9 a.m. Eastern Time.
The call will provide an update on company operations and include a presentation with supplemental financial data, available on their investor website.
To participate in the call or ask questions, pre-registration is required. An audio-only webcast will be accessible for listeners, with a replay option available until August 1, 2024.
GreenGasUSA and Darling Ingredients (NYSE: DAR) have announced a partnership to produce renewable natural gas (RNG) and capture CO2 from wastewater streams at Darling's U.S. facilities.
This collaboration aims to significantly reduce greenhouse gas (GHG) emissions through the installation of gas upgrading and CO2 capture systems. The project will also generate beneficial co-products, making it a sustainable initiative.
Darling Ingredients focuses on repurposing waste, while GreenGasUSA specializes in producing RNG from waste streams. The partnership seeks to accelerate innovative waste management solutions and deliver environmental benefits.
South Carolina Commissioner of Agriculture Hugh Weathers supports this initiative, highlighting the agricultural sector's role in advancing the clean energy economy.
Darling Ingredients (NYSE: DAR) announced a new initiative to reduce emissions from its wastewater treatment plants by converting biogas into renewable natural gas (RNG) through a partnership with GreenGasUSA. This project will initially focus on five of Darling's rendering facilities in the U.S., with potential expansion based on feasibility and market conditions. CEO Randall C. Stuewe emphasized the company's commitment to sustainability and leveraging its expertise in RNG. GreenGasUSA's CEO Marc Fetten highlighted the economic and environmental benefits of the partnership, aligning with both companies' goals of repurposing waste into valuable resources.