Rex American Resources Corp. on Sept. 1 announced its two majority-owned plants are operating at below capacity due to several factors, including a planned shutdown, high corn prices and logistics problems.
Zafar Rizvi, CEO of Rex, discussed operations at the Gibson City, Illinois-based One Earth Energy LLC and Marion, South Dakota-based NuGen Energy LLC facilities during a fiscal second quarter earnings call held Sept. 1.
Rizvi explained that logistics problems are being experienced due to the availability of DDG containers, noting that the problem may persist into the fall.
According to Rizvi, gross margins are currently under pressure and are expected to continue to remain so in the near-term, which he said could aversely affect the company in the fiscal third quarter.
Stuart Rose, executive chairman of Rex, confirmed that the company&rsquo;s ethanol operations are currently running at a profitable rate, but at a lesser rate than in the fiscal second quarter. Rose also indicated that Rex continues to look for additional opportunities to buy ethanol plants, but stressed no purchases are imminent at this time.
Both Rose and Rizvi also discussed the carbon capture and sequestration (CCS) project underway at the One Earth Energy facility in partnership with the University of Illinois.
Rizvi said Rex has applied for a permit to drill a test well for the CCS project with the Illinois Department of Natural Resources. That permit is expected to approved within the next two weeks. A FEED study for the proposed CCS project is also underway, with design for CO2 capture facility expected to be complete soon.
Rex reported $195.8 million in net sales and revenue for the fiscal second quarter, which ended July 31, up from $39.3 million reported for the same period of last year. Net income attributable to Rex shareholders was $7.9 million, compared to a net loss of $1.7 million. Basic and diluted net income per share attributable to Rex common shareholders was $1.31, compared to a net loss per share of 28 cents.
Rex currently holds ownership interest in six ethanol plants, including 75.6 percent ownership interest in Gibson City, Illinois-based One Earth Energy LLC, 99.7 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC, 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 ownership interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.
Correction:&nbsp;A previous version of this article misspelled Zafar Rizvi&rsquo;s name.

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Rex American Resources Corp. on Sept. 1 announced its two majority-owned plants are operating at below capacity due to several factors, including a planned shutdown, high corn prices and logistics problems.



Rex reports profitable Q2 for ethanol segment

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