Browse > Home / Producer News, Stock & Financial Outlook / Pacific Ethanol capital raise clears path for completion of California corn ethanol plant, analyst says, but liquidity concerns remain

Pacific Ethanol capital raise clears path for completion of California corn ethanol plant, analyst says, but liquidity concerns remain

May 28, 2008

Raymond James analyst Pavel Molchanov released a report on Pacific Ethanol’s capital raising activities in the face of a liquidity challenges brought on by construction cost overruns and increasing costs for corn feedstock. Molchanov said that the company could be expected to use $5.75 million raised from management and insiders to alleviate working capital needs, while a $28.5 million private placement would likely be used with $83 million remaining in its construction loans to complete construction of its Stockton, CA corn ethanol plant.

Earlier this month, Pacific Ethanol reported that first quarter ethanol sales were up 63 percent to $161 million, year over year, and the company earned 6 cents per share compared to analyst expectations of a 9 cent loss. Ethanol sales were up 57 percent to 37.5 million gallons. The news sent shares of other ethanol companies up as much as 41 percent.

In Idaho, Pacific Ethanol recently commenced production at its 60 Mgy corn ethanol plant in Burley. The plant will use 21 million bushels of corn, and the company hopes to
supply the entire ethanol demand for Idaho from the plant, as well as
up to 500,000 tons of distillers grains for livestock feed.


  • Pacific Ethanol suspends ethanol plant in Imperial Valley, California; says still on track for 220 Mgy in ‘08
    • Pacific Ethanol said that it was suspending construction on its ethanol plant near Calipatria, in the Imperial Valley. The company confirmed that it would still attain its 220 Mgy production target...
  • Pacific Ethanol reports $54 million loss for third quarter; reaches 220 Mgy capacity goal; liquidity questioned
    • In California, Pacific Ethanol reported a massive  loss of $54.9 million for the third quarter, including an operating loss of $28.3 million, or $0.47 per share. The company reported a 56 percent inc...
  • 60 Mgy Pacific Ethanol plant in Idaho faces fines over “eye-watering” odor
    • In Idaho, the 60 Mgy Pacific Ethanol plant in Burley is facing daily fines from the local town council for zoning violations stemming from odors characterized in an AP story as "eye-watering". The com...
  • California’s Hanford City Council set to vote on 63 Mgy ethanol plant
    • In California, the Hanford City Council is set to vote on a 63 Mgy corn ethanol plant proposed by Great Valley Ethanol. Opposition to the plant's construction has focused on noise and emission issues....
  • Resurgent Pacific Ethanol increases credit line, ready to launch 50 Mgy corn ethanol plant in California
    • In California, Pacific Ethanol reports that it will commence production at its 50 Mgy corn ethanol plant in Stockton, remains committed to a demonstration scale cellulosic ethanol plant in Boardman, O...
  • Pacific Ethanol launches 60 Mgy corn ethanol plant in California
    • In California, Pacific Ethanol has commenced production at its 60 Mgy corn ethanol facility at Stockton. The plant will also produce 500,000 tons of wet distillers grains as livestock feed for the San...

    Written by Jim Lane · Filed Under Producer News, Stock & Financial Outlook 

    Comments

    Got something to say?

    You must be logged in to post a comment.