The Andersons reports strong Q1 for renewables segment

By Erin Voegele | May 04, 2022

The Andersons Inc. on May 3 reported that its renewables segment reported record EBITDA for the first quarter of 2022. Production volumes for ethanol and corn oil were both up, with renewable feedstocks and coproduct merchandising well above expectations, according to Pat Bowe, president and CEO of The Andersons.

During a first quarter earnings call, held May 4, Bowe said that the company’s renewable segment performed well during the three-month period, with improved ethanol board crush margins when compared to the same quarter of last year. Higher commodity prices kept feed and corn oil values high, Bowe added. In addition, third-party merchandizing of low carbon intensity (CI) renewable feedstocks and other coproducts was up significantly when compared to the first quarter of 2021.

Bowe said all five of the company’s ethanol plants have completed their spring maintenance shutdowns. The facilities are well positioned to meet the seasonal increase in driving demand, he added.

Moving into the second and third quarters, Bowe said board crush margins have recently moved favorably. U.S. ethanol stocks remain high but are expected to decline with growing seasonal domestic and export demand.

According to Bowe, strong demand and good values for coproducts continues to support the company’s overall margins. “Our low CI renewable diesel feedstock merchandising business is performing very well and adding to our results,” he said.

The Andersons’ renewable segment reported record first quarter EBITDA of $24.4 million, up $2.4 million when compared to the same period of 2021. Overall, The Andersons reported $10.2 million in pretax income attributable to the company, down from $16 million during the first quarter of last year. Adjusted pretax income was $10.2 million, down from $16.4 million. The renewable segment reported adjusted pretax income of $5.5 million, up from $2.9 million. Net income attributable to the company was $6.1 million, down from $11.6 million. Adjusted earnings per share was 18 cents for the first quarter, compared to 36 cents during the same period of 2021. EBITDA was $55.8 million, down from $62.7 million, with adjusted EBITDA at $55.8 million, compared to $63.2 million.