Rex American Resources reports increased ethanol sales in Q1

By Erin Voegele | May 29, 2018

On May 23, Rex American Resources Corp. released first quarter financial results, reporting increased ethanol sales volumes and gross profit when compared to the same period of 2017.

“Ethanol pricing remained pressured in the first quarter based on industry supply levels and legislative uncertainty,” said Zafar Rizvi, CEO of Rex. “However, our consolidated plants increased the volume of ethanol sold by 9 percent over last year’s first quarter and with the recovery in distillers grain pricing we grew the gross profit in the ethanol and by-products segment by 8.5 percent.”

During an investor call, Rizvi said the company invested approximately $3.2 million in its ethanol plants during the first quarter of this year. “As I stated last quarter, we plan to continue to increase our production, and at this time have no plans to slow down.” For the full year, Rizvi said Rex plans to spend $6 million to $8 million for capital improvements, excluding any maintenance and scheduled shutdown expenses.

Rex reported $120.8 million in net sales and revenue for the first quarter, up from $113.1 million during the same period of last year. Gross profit for the ethanol and byproducts segment reached $13.5 million, up from $12.5 million during the first quarter of last year. Net income attributable to Rex shareholders reached $9.5 million, up from $4.5 million during the first quarter of 2017. Diluted net income per share attributable to Rex common shareholders was $1.45 per share, up from 69 cents per share during the first quarter of last year.

Rex currently holds 75.1 percent ownership in Gibson City, Illinois-based One Earth Energy LLC, 99.5 percent ownership interest in Marion, South Dakota-based NuGen Energy LCC, 10.3 percent ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC, 10.3 percent ownership interest in Galva, Illinois-based Big River Resources Galva LLC, 5.7 percent ownership interest in Dyersville, Iowa-based Big River United Energy LLC, and 10.3 percent interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.