Will a Strong Balance Sheet Protect Renewable Energy Group?
Renewable fuel markets and uncertainty often go hand in hand, but the economic fallout of the last month definitely adds a creative twist to the relationship.
The novel coronavirus pandemic and an economic spat between Saudi Arabia and Russia have combined to cut crude oil prices by more than half since the beginning of the year. On multiple continents, local, regional, and national efforts to contain the SARS-CoV-2 virus have led to steep reductions in liquid fuels consumption.
It's still too soon to know exactly how the unfolding situation will affect specific industries, but sharply lower crude oil prices will surely hurt biomass-based diesel producers like Renewable Energy Group (NASDAQ: REGI). The positive news is that the company began 2020 with a strong balance sheet. Can that protect the business and the small-cap stock during these uncertain times?
Source Fool.com
