Pacific Ethanol makes Q3 loss
US-based marketer and producer Pacific Ethanol has increased its Q3 sales and lost more money due to higher demand for ethanol and more expensive corn.
Shares of Pacific Ethanol dropped $0.17 (â?¬0.14) to close at $0.91 after the company reported a hefty loss in early November.
The company lost $54.9 million in the quarter ended 30 September, compared to the loss of $4.84 million, or 15 cents per share, in Q3 2007.
The loss included a non-cash charge of $26.6 million associated with the companyâ??s suspended Imperial Valley plant, which represents the net of $43.8 million in property and equipment, and $17.2 million in construction-related liabilities.
Third-quarter sales totalLed $184 million, a 56% increase from $118 million for the same period last year.
Sales volume increased to 65 million gallons, from 50 million gallons in Q3 2007, while the average quarter-over-quarter ethanol price rose 16% to $2.45 per gallon, from $2.11 per gallon.
Prices for corn rose 54% in the quarter, so the companyâ??s cost increases outpaced its revenue growth.
â??We saw unprecedented volatility in the corn and ethanol markets during the quarter and are disappointed with the resulting impact on margins,â?? Neil Koehler, the companyâ??s president and CEO, says.
â??Despite the challenging operating environment, ethanol plays a significant and growing role in our nationâ??s transportation fuel supply. We are pleased to report that weâ??ve met our goal of building 220 million gallons of operation capacity in the western US.â??
The company opened its 60 million gallon a year Stockton plant during the quarter. The company also owns plants in Madera, Boardman, Oregon, and Burley, Idaho. It owns a 42% interest in Front Range Energy, which has an ethanol plant in Windsor, Colorado.
Shares of Pacific Ethanol dropped $0.17 (â?¬0.14) to close at $0.91 after the company reported a hefty loss in early November.
The company lost $54.9 million in the quarter ended 30 September, compared to the loss of $4.84 million, or 15 cents per share, in Q3 2007.
The loss included a non-cash charge of $26.6 million associated with the companyâ??s suspended Imperial Valley plant, which represents the net of $43.8 million in property and equipment, and $17.2 million in construction-related liabilities.
Third-quarter sales totalLed $184 million, a 56% increase from $118 million for the same period last year.
Sales volume increased to 65 million gallons, from 50 million gallons in Q3 2007, while the average quarter-over-quarter ethanol price rose 16% to $2.45 per gallon, from $2.11 per gallon.
Prices for corn rose 54% in the quarter, so the companyâ??s cost increases outpaced its revenue growth.
â??We saw unprecedented volatility in the corn and ethanol markets during the quarter and are disappointed with the resulting impact on margins,â?? Neil Koehler, the companyâ??s president and CEO, says.
â??Despite the challenging operating environment, ethanol plays a significant and growing role in our nationâ??s transportation fuel supply. We are pleased to report that weâ??ve met our goal of building 220 million gallons of operation capacity in the western US.â??
The company opened its 60 million gallon a year Stockton plant during the quarter. The company also owns plants in Madera, Boardman, Oregon, and Burley, Idaho. It owns a 42% interest in Front Range Energy, which has an ethanol plant in Windsor, Colorado.
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