Green Plains Posts Wider-Than-Forecast Loss on Biofuel Woes
Green Plains Inc., a major US corn-based biofuel producer, reported a wider-than-expected quarterly loss due to lower prices and idled plants. First-quarter results revealed a net loss of 81 cents per share, more than double analyst predictions. Revenue also fell short, declining 28% to $597.2 million. CEO Todd Becker cited industry oversupply and a cold snap in January as contributing factors. The company explores strategic options amid investor pressure, with shares declining 38% in the past year.
Green Plains Inc., one of the biggest US producers of corn-based biofuel, said lower prices and idled plants hurt quarterly margins as the ethanol maker reported a quarterly loss that was far steeper than analysts expected.
The Omaha, Nebraska-based company posted a net loss of 81 cents a share for the first quarter, according to a company statement Friday. That’s more than twice the average analyst forecast for a loss of 31 cents a share. Revenue also missed estimates, dropping 28% to $597.2 million.
The company said first-quarter ethanol margins were weaker amid an industry glut and lower prices. Margins have since improved from the quarterly lows but still have a “long way to go,” Chief Executive Officer Todd Becker said on an earnings call with analysts. He also noted that the company was hurt by a cold snap in January that caused a few of its biofuels plants to be idled.
Becker is under pressure as he tries to transform Green Plains from mainly an ethanol maker into an agriculture-technology powerhouse. The aim is to generate steady profit by making high-value ingredients from corn to use in products ranging from low-carbon jet fuel to candy.
Disappointing financial results last year led to investor pressure for change, and in February the company said it was exploring options that could include a sale, merger or acquisition. Green Plains is still evaluation strategic options, Becker said during the call.
Shares of the Green Plains have dropped 38% over the past 12 months.
“We continue to await evidence of the benefits of investments that have been made,” Stephens Inc. analyst Ben Bienvenu wrote in a note on Friday ahead of the company’s earnings conference call.
Source Link : https://www.bloomberg.com/news/articles/2024-05-03/green-plains-posts-wider-than-forecast-loss-on-biofuel-woes
Recommended for you
