• Origin Materials reported an adjusted EBITDA loss of USD 6.5 million in Q1 2022, which was 1.4x the loss in Q1 2021 (USD 4.6 million). However, the company generated net income of USD 7.3 million in Q1 2022 compared to a net loss of USD 53.4 million in Q1 2021, mainly due to the gain in fair value of earnout liability (+15.2 million).

• Operating losses for the year increased 43% YoY to USD 7.5 million in Q1 2022. This was due to increases in R&D spending (+77% YoY) and general and administrative expenses (+31% YoY) during the quarter.

<ul><li>Origin Materials also reported that its signed offtake agreements and capacity reservations increased 111% since 1H 2021 to reach USD 7.4 billion. This is a more than 7x increase since the company went public in February 2021 . The company is yet to generate revenue to date.</ul>

• The company maintains its FY2022 adjusted EBITDA loss guidance of USD 36 million but expects capital expenditure to increase to USD 175 million in FY2022 due to the increase in the capital budget for Origin 1 (+USD 15-20 million) citing inflation and supply chain constraints.

• Key operational highlights include: 

  • On track to complete the Origin 1 and Origin 2 plants by the end of 2022 and mid-2025 respectively. During Q1 2022, the company hired additional members for the Origin 1 operations leadership team and began the hiring process for additional operations staff. Front-end design of the Origin 2 plant also began with engineering work set to begin in 2023.

<ul><li>Partnerships with 1) Mitsubishi Chemical Holdings to develop carbon-negative tire materials, 2) LVMH Beauty to develop bio-based packaging for the perfumes and cosmetics products, and 3) Minafin Group to produce high-value, bio-based chemicals on an industrial scale.</ul>