SIRE reports fiscal third quarter financial results

By Erin Voegele | August 11, 2016

Southwest Iowa Renewable Energy LLC has reported financial results for its third fiscal quarter, the three months ended June 30, reporting a net loss of $300,000 million, or a loss of $20.48 per basic unit compared to net income of $6.1 million or $457.04 per basic share for the same period of the prior year.

Revenue from operations was $165.4 million for the nine months ended June 30, down from $186.2 for the same period of the prior year. For the three months ended June 30, 2016, revenue from operations was $58. 1 million, compared to $58.2 million for the same three-month period of 2015.

Modified EBITDA was $10.2 million for the nine months ended June 30, compared to $27.1 million for the same period of the prior year. Modified EBITDA was $4.4 million for the three months ended June 30, compared to $9.4 million for the same period of 2015.

“Margins did improve this quarter, compared to the second quarter, as we capitalized on the increased demand for gasoline and ethanol in the U.S., said Brian Cahill, president and CEO of SIRE. “Our margins are being directly impacted by lower oil prices, which increase demand for ethanol but drive down ethanol prices, as well as the lower corn prices towards the end of June as the 2016 weather has been excellent for corn, and the corn crop and harvest look very favorable to the ethanol industry.”

SIRE produced 30.9 million gallons of ethanol during the third quarter of fiscal 2016. “We continue to focus on running the plant efficiently, seeking the right balance of optimizing yield and profit,” Cahill said.

SIRE reported product revenue from denatured and undenatured ethanol was $45.2 million for the three months ended June 30, accounting for 77.8 percent of revenue, compared to $42.34 million, or 72.7 percent, during the same period of 2015. Distillers grains revenue for the quarter was at $10.2 million, or 17.5 percent of revenue, compared to $13.23 million, or 22.7 percent, during the third fiscal quarter of 2015. Corn oil accounted for $2.4 million, or 4.1 percent of revenue, during the third fiscal quarter of this year, compared to $2.32 million, or 4 percent, during the same quarter of last year. Other products accounted for $329,000, or 0.6 percent of revenue, during the third fiscal quarter of 2016, compared to $341,000, or 0.6 percent, during the same period of 2015.