Clean Energy Fuels (NASDAQ: CLNE) trying to make it work

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By Thomas Copeland on January 11, 2015 Company

The stock market has been on a bullish trend for the past 6 years and the companies have managed to enhance the wealth of its share holders beyond expectations. However, year 2014 indeed was one of the worst years for oil companies. All the companies operating didn’t saw it coming and one such company that was under a lot of beating throughout the year was Clean Energy Fuels (NASDAQ: CLNE).

The shares of Clean Energy Fuels (NASDAQ: CLNE) collapsed like a pack of cards during the past one year. Clean Energy Fuels (NASDAQ: CLNE) witnessed a drop of 61% during the previous year, which has been heart breaking for the investors. Even though the stock prices took a great fall, Clean Energy Fuels (NASDAQ: CLNE) has a lot of positives to offer that can change the performance in 2015.

Clean Energy Fuels (NASDAQ: CLNE) has managed to cut down its operating expenses and also entered into new partnerships and joint ventures. These steps would help Clean Energy Fuels (NASDAQ: CLNE) to regain after the horrendous year.

Clean Energy Fuels (NASDAQ: CLNE) specializes in making natural gas engines for heavy duty fleets. Clean Energy Fuels (NASDAQ: CLNE) aims to covert the freight movers to operate on an organic alternative and work towards a clean environment but the drop in oil prices has actually worked against it. One of the sales pitch also included that the Clean Energy Fuels (NASDAQ: CLNE) users would be spending less on fuel but it seems the pitch has back fired.

Clean Energy Fuels (NASDAQ: CLNE) is expecting to receive around $24 million in revenue from The Natural Gas Fuel and Infrastructure Tax Credit. Although not much, the amount will inject some additional capital into Clean Energy Fuels (NASDAQ: CLNE) which is the need of the hour at the moment. The company had losses of 160% in 2014 but according to analysts, it is being quoted that the company might have a chance to post a profitable figure this year.

Clean Energy Fuels (NASDAQ: CLNE) will also be opening up gas fueling stations in partnership with Mansfield Oil Company. This is a 3 billion gallons per year market that can bring a lot of good luck for Clean Energy Fuels (NASDAQ: CLNE). Clean Energy Fuels (NASDAQ: CLNE) will also be diversifying in partnership with NG Advantage where it will be having controlling stake. Clean Energy Fuels (NASDAQ: CLNE) will be able to cater to the energy needs of hospitals and schools with this take over.

With all these good happening, one thing that will still haunt Clean Energy Fuels (NASDAQ: CLNE) though out 2015 is the drop in oil prices. Low oil price means drop in sales of Clean Energy Fuels (NASDAQ: CLNE) and it seems the company at the moment has no remedy for this at the moment.

The year 2015 posts both opportunities and threats for Clean Energy Fuels (NASDAQ: CLNE). Only time will tell how the company performs under pressure of posting profits for its shareholders.