SIRE reports strong margins in quarterly report

By Erin Voegele | February 05, 2014

Southwest Iowa Renewable Energy has released financial results for the first quarter of its fiscal year 2014, the three months ended Dec. 31. The company reported net income of $10.86 million, or $826.23 per basic unit, for the quarter, up from the net loss of $8.68 million, or $660.82 per unit, for the same quarter of the prior year.

According to Brian Cahill, president and CEO of SIRE, the company experienced some of the best margins of its history during the quarter. “We experienced and managed through the significant price volatility for corn during the past year, with U.S. corn production recovering well after the 2012 drought,” he said in a statement, noting that corn prices averaged $4.37 during the quarter, down significantly from the past year’s price of $7.49.

SIRE operates a 125 MMgy corn ethanol plant in Council Bluffs, Iowa. In its quarterly report, the company indicated it produced 33.2 million gallons of ethanol during the first quarter of fiscal 2014, up from 24.3 million during the same three months of the prior fiscal year. The company produced 107,029 tons of distillers grains and ground 11.93 million bushels of corn during the quarter, up from 79,783 tons and 8.58 million bushels during the first quarter of fiscal 2013.

SIRE reported EBITDA (earnings before interest, income taxes, depreciation, amortization and unrealized hedging gains and losses) of $15.84 million for the quarter, up from $1.38 million for the first fiscal quarter of 2013.

In its quarterly report, the company also noted it continues to capitalize on the advantage of having a dual-power plant capable of heating with natural gas or with steam from a nearby power plant.