Rex American Resources Corp. released financial results for the fiscal third quarter on Nov. 30, reporting the company achieved an all-time record net income per share attributable to Rex common shareholders of $1.49, up from 18 cents during the third quarter of last year.&nbsp;Rex sold 73.2 million gallons of ethanol during the fiscal third quarter, the three months ended Oct. 31, up from 66.3 million gallons sold during the same period of 2022. Doug Bruggeman, chief financial officer of Rex, said increased sales volumes were offset by lower pricing across all categories. According to the company, the average selling price for a gallon of ethanol was $2.32, down from $2.49, while the average selling price per ton of dried distillers grains was $194.94, down from $230.29, and the average selling price for corn oil was 61 cents per pound, down from 74 cents per pound during the fiscal third quarter of last year.&nbsp;Third quarter net sales and revenue were $221.1 million, down slightly from $220.3 million during the same period of 2022. Gross profit was up 323.7 percent, reaching $39.3 million, compared to $9.3 million during the third quarter of last year. Rex attributed the improvement to decreased input costs, including lower corn and natural gas pricing. Net income attributable to Rex common shareholders was $26.1 million, up from $3.2 million.&nbsp;“Our fiscal third quarter results mark the best quarterly net income and earnings per share results in our 39-year history as a public company and highlights the strength of our ethanol operations,” said Zafar Rizvi, CEO of Rex. “The substantial increase in income before taxes to&nbsp;$41.3 million&nbsp;underscores the efficiency of our operations and our ability to capitalize on favorable industry conditions.”Moving into the fourth quarter, Rizvi said Rex has seen some decline in margins but still expects fourth quarter financial results to be significantly improved when compared to the same period of last year.During an earnings call, Rizvi also discussed the carbon capture and sequestration (CCS) project under development at the company’s One Earth Energy ethanol plant in Illinois. He said construction of the capture and compression facility has started and long-lead items have been ordered. All modular compression equipment for the facility is scheduled to be delivered in early 2024, he added. Construction on the facility is expected to be complete by the end of the second quarter, at which time testing will begin, Rizvi continued.Rizvi also noted that paperwork and permitting efforts continue. The project is awaiting the approval of a Class VI permit for carbon injection from the U.S. EPA and approval from the Illinois Commerce Commission to construct 7.2 miles of pipeline. That pipeline application <a href="https://ethanolproducer.com/articles/application-filed-for-proposed-one-earth-energy-co2-pipeline-project">was filed</a> with the Illinois Commerce Commission by One Earth Sequestration LLC in mid-October.Rex currently holds ownership interest in six ethanol plants. The company is the majority owner of Gibson City, Illinois-based One Earth Energy LLC and Marion, South Dakota-based NuGen Energy LLC. The company also holds a minority ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC; Galva, Illinois-based Big River Resources Galva LLC; Dyersville, Iowa-based Big River United Energy LLC; Boyceville, Wisconsin-based Big River Resources Boyceville LLC.

2023-12-04 - Rex reports strong Q3, provides update on CCS project (Ethanol Producer Magazine)

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Rex American Resources Corp. released financial results for the fiscal third quarter on Nov. 30, reporting the company achieved an all-time record net income per share attributable to Rex common shareholders of $1.49. 

Rex reports strong Q3, provides update on CCS project

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