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 increase in sales to $118 million based on rising ethanol demand to 65 million gallon and an increase in ethanol prices. However, corn costs rose 54 percent for the quarter. The company has reached its initial goal of 220 Mgy in production capacity, but wrote off $26.6 million in the form of impaired assets with the suspension of development of its Imperial Valley (CA) plant.
The company owns plants in Madera, Boardman (OR) and Burley (ID). “The steep losses from Pacific this quarter, a clear illustration of the difficulties currently facing the ethanol space,” commented analyst Pavel Molchanov of Raymond James, “underscore the concerns we continue to have regarding the company’s liquidity and cash flow outlook.”
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