Green Plains produced record ethanol, coproduct volumes in Q3

By Erin Voegele | October 29, 2014

Green Plains Inc. has released financial results for the third quarter of 2014, reporting net income of $41.7 million, or $1.03 per diluted share, up from $9.4 million, or 28 cents per diluted share, during the same period of last year. During an investor call to discuss the quarterly results, Jerry Peters, chief financial officer of Green Plains, called the quarter the second best in terms of earnings in the history of the company.

Revenues for the quarter were $833.9 million, up from $758 million during the third quarter of 2013. Revenues for the first nine months of the year were $2.4 billion, up from $2.3 billion for the same period of the prior year. Net income for the first nine months of the year was $117.3 million, or $2.90 per diluted share, compared to $17.9 million, or 56 cents per diluted share, during the same period of 2013.  

Todd Becker, president and CEO of Green Plains, indicated the company set record operating income over the past four quarters, and produced 933 million gallons of ethanol over the past 12 months. Green Plains produced a record 247 million gallons of ethanol during the third quarter, which Becker noted is approximately 96 percent of the company’s expected daily average production capacity. The company also produced a record volume of distillers grains, with nearly 700,000 tons of production. Corn oil production also set a record at 63 million pounds.

"U.S. ethanol production margins continue to reflect strong demand, both domestically and globally. As a result of this environment, we are reaffirming our mid-year guidance of stronger earnings per share performance in the second half of 2014," added Becker.

According to Becker, Green Plains has sold approximately 15 percent of if its fourth quarter ethanol production into exports and continues to see more interest from export markets each day. “We have volumes sold and destined to India, the Philippines, Brazil and other developing countries, along with our normal buyers like Canada and others,” he said. “We are booking export sales into 2015, extending into the third quarter of next year. We typically have not seen export interest that far out in the future.”

With regard to Green Plains’ algae operations, Becker indicated the company is continuing to focus on how to best allocate capital to the business. “We need to make to make sure we can scale our technology and profitably produce products for feed and food,” he said, noting the company recently completed series of fish feed trials that showed optimistic results. The company is also evaluating the possibility of producing oils and other products. “While we certainly can make lots of different products, we are determining if we can make those profitably,” he continued.