Sacramento, California-based renewable fuels producer and marketer Pacific Ethanol has boosted its financial performance and product output during the third quarter of 2017, due in part to the company’s successful July acquisition of Illinois Corn Processing (ICP).
Pacific Ethanol produced a record of 141.8mn gallons of ethanol during the third quarter of 2017, a near 13% rise compared to the same period in 2016. Total sales during the third quarter totaled 250mn gal, a 2.6% rise from the prior year.
Despite the elevated output statistics, production capacity utilization at Pacific Ethanol plants during the period fell by 3p.p. from the prior year level, from 96% to 93%. Average ethanol sales in price per gallon did rise though over the same period, from $1.62 during the third quarter of 2016 to $1.69 in 2017.
Pacific Ethanol president Neil Koehler stated that the company has improved their finances despite unfavorable margins in the commodity market. He proceeded to reflect positively on the ICP acquisition, with Pacific Ethanol registering YoY and QoQ improvements in net sales, gross profits, and operating income.
Third quarter net sales rose by 6.6% from the previous year, from $417.8mn to $445.4mn, while gross profit YoY shot up by 89.1% from $6.4mn to $12.1mn. Net loss to common stockholders also shrunk by 86.8% from Q3 2016 to Q3 2017, at $3.8mn to $0.5mn respectively.
Pacific Ethanol owns and operates nine biorefinery plants across the US Midwest and West Coast, with a combined production capacity of 605mn gal annually.