Pacific Ethanol, a leading producer and marketer of low-carbon renewable fuels and high-quality alcohol products in the US, has reported its financial results for the three months ending on 31 March.
The company reported that net sales were $311m (€287 million) compared with £355 million (€328 million) in 2019.
Total gallons sold amounted to 184.9 million this year which was down from 211 million last year.
“We are encouraged by recent positive trends in the fuel market, which we expect will accelerate as states begin to relax stay at home directives,” said Neil Koehler, Pacific Ethanol’s president and CEO. “Government orders related to the fight of COVID-19 decimated fuel demand and significantly impacted our first quarter 2020 results.
“As an essential business, we are thankful to our employees for their commitment to safely and efficiently produce and deliver low carbon renewable fuel, high quality alcohol and high protein feed to our customers in a time of need.”
He added: “Due to the lower demand and negative margin environment, we idled over 60% of our production capacity. Based on increasing demand and improving margins, we are gradually increasing production to meet market demand in ways and in areas where it makes economic sense. For years, our facilities in Pekin, Illinois, have supplied high quality alcohol products that meet the FDA’s stringent purity standards. In response to new demand for sanitisers and disinfectants, we have successfully increased our production and sales of high-quality alcohol.
“Our diversification strategy in high value products, geography, technology, and logistics, has served us well during this crisis. As the market normalises, we expect to benefit from the compelling cost, octane, carbon and health benefits of ethanol and the related long-term demand,” concluded Koehler.
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