Green Plains posts rise in profits, revenue

Source: By By Barbara Soderlin, Omaha World Herald • Posted: Tuesday, August 2, 2016

Omaha’s Green Plains Inc. on Monday said revenue and profits rose in the second quarter as it produced record volumes of ethanol and saw growing demand in the U.S. and overseas.

The firm reported net income of $8.2 million, or 21 cents per diluted share, for the three months ending June 30, up 5.1 percent from $7.8 million, or 19 cents per diluted share, for the same period a year ago.

Earnings beat analysts expectations; stock analysts surveyed by FactSet expected Green Plains to report second-quarter earnings per share of 1 cent. Green Plains had reported a loss of $24 million, or 63 cents a share, in its first quarter.

The boost in profits came as ethanol prices rose during the quarter following some of the lowest prices in years.

Revenue rose by 19 percent to $887.7 million. But the company’s measure of operating income, its “crush margin,” fell to 17 cents per gallon, good for $45.3 million, from 20 cents per gallon, or $46.5 million, a year ago. The crush margin is the difference between the price of a bushel of corn and the price Green Plains can get for the ethanol and other commodities it derives from corn.

Green Plains stock fell about 2.7 percent Monday before earnings were released, closing at $22.07 on the Nasdaq market. Its stock is down more than 3.6 percent so far this year.