Omaha, Nebraska-based ethanol producer Green Plains anticipates continued robust demand, both domestically and abroad, for both its ethanol and agribusiness segments, while expanded ethanol blends, such as E15, gain further traction across the United States.
Green Plains produced 313.6mn gallons of ethanol during the third quarter of 2017, a 7.3% rise from the previous year. Ethanol sales during the quarter, both domestically and abroad, totaled 345mn gal and 34.8mn gal, a 15% rise, and 0.3% fall, respectively, from the prior year.
Despite the reported increase in ethanol production and domestic sales, operating income during the quarter fell by $10.1mn compared with the same period a year prior, primarily due to decreased margins on ethanol production.
Ethanol crush margins per gallon shrank from 17c/gal during the third quarter of 2016 to 15c/gal during Q3 2017, resulting in a consolidated crush margin of $47.3mn, a near 10% fall from the prior year.
Green Plains president Todd Becker said that the company will continue to flex its production based on market conditions at each individual plant, and closely monitor for needed adjustments during the remainder of the fourth quarter and into 2018.
The company reported a quarterly net income of $34.4mn, a 335% rise from the companies $7.9mn net income during the third quarter of 2016. An adjusted net loss of $7.4mn was posted during the quarter, before refinancing expenses and net research and development tax credits.
Green Plains owns and operates 17 ethanol production plants across 10 US states, with an estimated annual production capacity of 1.42bn gal/year. The company, which claims to be the fourth largest ethanol producer in North America, employs 640 people across the US and Canada.