Green Plains announces near-record quarterly results

By Erin Voegele | July 30, 2014

Green Plains Inc. has released second quarter financial results, reporting its second best quarter in history. Net income for the three-month period was $32.3 million, or 82 cents per diluted share, compared to $6 million net income or 19 cents per diluted share for the same period of last year. Revenues were $837.9 million for the quarter, compared to $804.7 million for the second quarter of 2013.

"We are pleased to report another strong quarter as ethanol, distillers grains and corn oil set new production records. All of our plants were operating at optimal levels, even as rail transportation continues to impact movement of our products," said Todd Becker, president and CEO of Green Plains. "Market fundamentals are favorable and based on a continuation of these conditions, we expect stronger earnings per share performance in the second half of the year."

During a call to discuss the results, Becker indicated 2014 is shaping up to be a record year. In the current market, he predicted Green Plains will report stronger 2014 second half results.

During the second quarter, the company produced record volumes of ethanol, distillers grains and corn oil. Ethanol production reached 242 million gallons during the quarter, which Becker described as being approximately 95 percent of the company’s expected daily average production capacity for the quarter. Approximately 653,000 of distillers grains was produced in the second quarter along with 58 million pounds of corn oil.

Regarding export markets, Becker noted the company saw low export interest for the third quarter. However, there has been a significant pickup in export demand for the fourth quarter of this year and the first quarter of 2015, he said. Becker said Green Plains has seen new interest from the Middle East, Brazil and India in addition to the normal channels, such as Canada. “We have sold up to 16 percent of our fourth quarter and 14 percent of our first quarter 2015 production for export, depending on executions into export channels, and continue to work very hard to provide backing to exporters for more overseas business,” he continued.

Becker also provided an update on Green Plain’s BioProcess Algae venture, noting the company has completed its initial obligation to the U.S. Department of Energy program and has continued to meet the DOE milestones at each step. The DOE work is focused on providing algae oil for military fuel development. Encouraging results also translate into an acceleration in chemical and omega-3 opportunities, he said. According to Becker, the company is in the final planning stages of a production capacity expansion to produce products that are in demand.