REX American delays completion target for Illinois ethanol expansion
REX American Resources has announced a delay in the expansion of its One Earth Energy ethanol plant in Illinois, pushing completion beyond the initial mid-2025 target. The postponement is due to a technical review aimed at ensuring operational efficiency and accommodating future capacity increases. Despite this, the company reported fiscal year 2024 net sales of $642.5 million and net income of $58.2 million.
REX American Resources (NYSE:REX) announced another delay in its planned expansion of the 150M gal/year One Earth plant in Illinois, citing a review of the expansion project “in keeping with our priority of maintaining efficiency and higher production level at our facilities,” Dow Jones reported Thursday.
The plant, which is the center of the REX American’s (NYSE:REX) carbon capture and sequestration project, is not expected to meet its mid-2025 deadline for completing the expansion work, CEO Zafar Rizvi said on the company’s FQ4 earnings conference call.
Rizvi said the company realized some of the equipment may not be able to handle the capacity upgrade goal of 200M gal/year, adding that it wants to position the facility for an eventual additional expansion to 225M gal/year, without added costs – “That’s the main reason that our budget increased and our timeline increased,” the CEO said on the call.
Work on capture and compression facilities at the plant has been completed, Rizvi said, and the company is awaiting Class VI injection well permits from the U.S. Environmental Protection Agency that are expected sometime in October.
REX American (REX) reported FQ4 GAAP earnings beat analyst consensus estimates, even as net income fell 46% Y/Y to $11.1M and revenues slid 16% to $158.2M, with much of the declines attributed to lower prices for its products.
The company also said FY 2024 ethanol sales totaled 289.2M gal, up 1.3% from 2023, at an average sales price of $1.71/gal, with Q4 ethanol sales rising 3.6% Y/Y to 74.7M gal, at an average sales price of $1.64/gal.
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Source : Seeking Alpha
