Ethanol Producers Report Strong Q1 Earnings in 2013

Ethanol Producers Report Strong Q1 Earnings in 2013 
Fueled by Strong Margins, New Technology and Better Efficiencies,
Ethanol Producers Are Rising From One of the Most Difficult Industry
GRAND FORKS, ND -- (Marketwired) -- 05/10/13 --  During the last few
weeks, Ethanol Producer Magazine reported improved margins and
increased coproduct income for many of the major ethanol groups. Due
to the vision of many executive leadership teams to develop new
strategies, combined with improved efficiencies at the plants,
ethanol companies produced significant first quarter earnings in
The Andersons - The ethanol group had operating income of $2.5
million in the first quarter, which compares to $100,000 earned
during the same period of 2012. Total revenues for the quarter were
$199 million. In comparison, the group's revenues for the same period
last year were $151 million. The revenue increase is primarily due to
the added volume from the Denison, Iowa plant, which was acquired in
the second quarter of 2012 and the higher income the result of
improved ethanol margins and increased co-product income. All four of
its ethanol plants now sell corn oil and E85. The sale of those
value-added production plus distillers dried grains and CO2 remains a
focus of the group as it contributes to a more consistent income
base, the company said in its earnings report.  
Abengoa Bioenergy SA - The company reported first quarter revenues of
EUR 1.85 billion ($2.42 billion), an increase of 19 percent compared
to the same quarter a year ago. Earnings before interest, taxes,
depreciation and amortization (EBITDA) were up 20 percent at EUR 270
Also on April 1, Abengoa Bioenergy announced that yield increases of
40 percent have been achieved in the past year. "The scientific,
technical and business developments achieved by Abengoa Bioenergy New
Technologies in the field of enzymes allow the company to anticipate
achievement, in 2013, of the profitability targets for this stage of
the process," the announcement said. ABNT is negotiating contracts
for the production of yeasts and enzymes in anticipation of the
startup of Abengoa's first second-generation ethanol plant, Abengoa
Bioenergy Biomass of Kansas. 
Green Plains Renewable Energy Inc. - Green Plains Renewable Energy
Inc. experienced significant financial improvement from the first
quarter of 2012 to the first quarter of 2013, the company reported
during a May 1 conference call. "Our performance over the last 12
months shows the great opportunity that we have in front of us,
coming out of the most difficult industry environment we have seen in
our history," said Todd Becker, president and CEO. 
The company's first quarter, which ended March 31, resulted in net
income of $2.6 million, or 8 cents per diluted share. "The benefits
of our multi-year diversification strategy, combined with operational
excellence and risk management were all factors that contributed to
the positive results, with nearly a $24 million increase in operating
income year over year," Becker said. 
Valero Energy Corp. - Valero Energy Corp. released its financial
results for the first quarter of 2013, reporting an operating income
of $14 million for its ethanol segment, a $5 million increase over
the $9 million operating income reported during the same period of
last year. In a call to discuss the results, Ashley Smith, vice
president of investor relations, attributed the increase to higher
gross margins per gallon.  
ADM - ADM's Ethanol segment showed improved margins in first quarter
of 2013. "Our ethanol business improved as declining inventories
supported overall industry margins, and we began to see positive
results from the actions we've been taking to improve the
profitability of that business," said ADM Chairman and CEO Patricia
Woertz. Profits for corn processing increased in total by $20 million
compared to the same time period the year before to a total of $153
million as a result of profits in the ethanol segment.  
Pacific Ethanol Inc. - Comparing the first quarter of this year to
the same time period in 2012 shows several key improvements for
Pacific Ethanol Inc. The company reported its quarter one financial
results in a conference call May 9. 
"Higher ethanol prices and more favorable market conditions in the
second half of the quarter drove significant increases in both
revenue and gross profit in the first quarter as compared to the
prior year's period," said Neil Koehler, the company's president and
CEO. "When combined with the beneficial impact of our increased plant
ownership in the first quarter and our continued efforts to control
expenses, these factors resulted in a positive adjusted EBITDA
[earnings before interest, taxes, depreciation, and amortization]. We
are optimistic about the second quarter as April production margins
demonstrated an even more material improvement." View Improved Margin
All of these companies, including many of their key decision makers
will be attending the 29th annual International Fuel Ethanol Workshop
& Expo (FEW), held June 10-13, 2013 in St. Louis, MO.  
To learn more about the FEW visit:  
About BBI International:
 Founded in 1995, BBI International produces
globally recognized bioenergy events and trade magazines. In addition
to the International Fuel Ethanol Workshop & Expo, the largest,
longest-running ethanol conference in the world -- BBI International
owns and operates the International Biomass Conference & Expo -- and
the National Advanced Biofuels Conference & Expo. The company
publishes Biomass Magazine, Ethanol Producer Magazine, Pellet Mill
Magazine, Biodiesel Magazine and The Bakken magazine as well as a
number of ancillary products. 
Contact Info
John Nelson
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