Irving, Texas-based fuel ingredients developer, and producer Darling Ingredients reported a slight increase in earnings during the second quarter of 2017, just over a 2pc increase YoY.
Net sales amounted to $896.3mn during the second quarter of 2017, up from $877.3mn in the second quarter of 2016. However, net income fell from $32mn in Q2 2016 to $9.1mn in Q2 2017, largely attributed to a weak food Ingredients segment and expiry of the US blenders tax credit. Moving forward, however, Darling Ingredients chief executive Randall C. Stuewe expressed optimism that the blenders tax credit would be reinstated in the future in bolstering the Renewable Fuel Standard (RFS2).
In contrast to the previous quarter’s report, Darling did not disclose the exact production numbers from its Diamond Green Diesel Joint Venture (DGD). The company simply reported that the DGD plant performed well operationally and that it is expected to meet the goal of 275mn gallons of annual production by Q2 2018.
Stuewe also announced that the Board approved a 24-month extension of Darling’s share repurchase program, contingent on market conditions.
“The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market,” Stuewe said. The repurchase program is also capped at $100mn.