ADM Reports Strong Q3 For Ethanol
Archer Daniel Midland Co. Chairman and CEO Juan Luciano on Oct. 24 reported the company’s Carbohydrates Solutions business segment achieved record third quarter results. Robust ethanol demand and strong margins contributed to that strong performance.
ADM’s Carbohydrate Solutions segment delivered $460 million in operating profit during the third quarter, up from $309 million during the same period of last year. The Starches and Sweeteners subsegment, including ethanol production from the company’s wet mills, reported $395 million in operating profit, up from $327 million. The Vantage Corn Processors subsegment, which includes the company’s dry mill facilities, reported $65 million in operating profit, up from a $18 million loss reported for the same period of 2022. The company attributed the subsegment’s significantly improved performance to robust demand and margins for ethanol.
Vikram Luthar, chief financial officer of ADM, said the company remains constructive on ethanol margins, driven by solid domestic demand and healthy U.S. exports, which are supported by lower competing exports from Brazil due to higher sugar prices. Results for the fourth quarter are expected to be similar to the same period of last year, but with upside potential if the current margin structure holds, Luthar said.
During the third quarter earnings call, Luciano also fielded questions on ADM’s plans for carbon capture and sequestration (CCS) and concerns over permitting issues. The company has been operating a carbon CCS project at its facility in Decatur, Illinois for more than a decade. Two injection wells have already been developed. Luciano said the ADM plans to create five more injection wells over the next few years. Part of the planned project will involve bringing biogenic CO2 generated by the company’s ethanol plants through pipelines. He said permitting is underway for two of those pipelines, along with work related to right of way, acquisitions and related agreements.
Source Link: https://ethanolproducer.com/articles/adm-reports-strong-q3-for-ethanol
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