Highwater Ethanol publishes Q2 results, plans production increase

By Erin Voegele | June 21, 2019

Lamberton, Minnesota-based Highwater Ethanol LLC recently published financial results for the second quarter of 2019 and announced plans to increase its annual production by more than 10 million gallons, to approximately 70 MMgy.

Documents filed by Highwater Ethanol with the U.S. Securities and Exchange Commission on June 20 indicate the company has an application pending with the Minnesota Pollution Control Agency to increase the limits of its air emission permit. The updated permit would allow the plant to increase its annual production from 59.5 MMgy to 70.2 MMgy.

In a June newsletter sent to shareholders, the company said it believes the increase in production capacity can be accomplished with no capital expenses. The application is currently being reviewed, and the company is hopeful it will be approved by Aug. 1.

Highwater Ethanol also recently filed its financial report for its fiscal second quarter of 2019, the three months ended April 30, with the SEC. The company reported total revenues of $22.94 million for the quarter, down from $24.26 million for the same period of 2018.

In the report, Highwater Ethanol primarily attributed a 7.5 percent decrease in revenue from ethanol sales to a decrease in the average selling price per gallon of ethanol sold. The report cites record levels of domestic production and international trade disputes as factors impacting the price of ethanol. Revenues from distillers grains was relatively flat, while revenue from corn oil sales increased approximately 11.9 percent when compared to the second quarter of last year.

Highwater Ethanol reported a net loss for the quarter was $2.58 million, compared to net income of $1.34 million for the second quarter of 2018.