AemetisGran Tierra Energy

Aemetis vs Gran Tierra Energy

This page compares Aemetis and Gran Tierra Energy, examining their business models, financial performance, and the market context in which they operate. The aim is to provide a neutral, accessible ove...

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Carbon-Negative Supply-Chain Enablers

Carbon-Negative Supply-Chain Enablers

This carefully selected group of stocks represents companies building our carbon-negative future. Professional analysts have identified these firms as leaders in technologies that permanently remove CO₂ from the atmosphere, positioning them to benefit from the growing demand for verifiable carbon removal solutions.

Published: June 17, 2025

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Investment Analysis

Pros

  • Aemetis benefits from policy tailwinds, including extended renewable tax credits and increased biofuel blending mandates that directly support its renewable fuels and natural gas platforms.
  • The company operates in high-growth renewable energy markets, with significant demand driven by California’s Low Carbon Fuel Standard and expansion in India’s biodiesel segment.
  • Aemetis has shown recent sequential revenue growth and operational improvements, with Q2 2025 revenue rising and net losses narrowing compared to the previous quarter.

Considerations

  • Aemetis remains unprofitable, with negative gross and net margins, and has reported consistent net losses over the past year, raising concerns about financial sustainability.
  • The company carries a high debt burden and negative equity, reflected in a debt/equity ratio of -163.6%, indicating significant balance sheet risk.
  • Aemetis operates in a commoditised industry with intense competition, and its ability to scale profitably is unproven, making future dilution likely.

Pros

  • Gran Tierra Energy is valued at a discount to book and sales, with price-to-book and price-to-sales ratios well below sector averages, suggesting potential upside if re-rated.
  • The company maintains a diversified asset base across Colombia, Canada, and Ecuador, which may reduce country-specific risks and provide operational flexibility.
  • Gran Tierra has a clear upside to analyst targets, with consensus estimates implying significant potential share price appreciation relative to current levels.

Considerations

  • Gran Tierra operates in a cyclical, capital-intensive sector and remains directly exposed to oil price volatility, which can sharply impact cash flows and profitability.
  • The company has a negative price/earnings ratio, reflecting net losses in the trailing twelve months and ongoing challenges in achieving consistent profitability.
  • Gran Tierra’s operations are concentrated in emerging markets, particularly Colombia, introducing political, regulatory, and security risks that could disrupt production or exports.

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