Rex reports increased ethanol sales volumes, progress with CCS and capacity expansion projects
Rex American Resources saw increased ethanol sales but lower Q4 revenue at $158.2M. Net income fell to $11.1M. The company advanced its Illinois CCS project, awaiting EPA approval. Expansion at One Earth Energy is delayed beyond mid-2025. Full-year revenue dropped to $642.5M. Despite challenges, Rex continues expanding production across its ethanol facilities.
Rex American Resources Inc. released fourth quarter financial results on March 26, reporting increased ethanol sales volumes and progress with the company’s planned carbon capture and storage (CCS) project in Illinois.
Zafar Rizvi, CEO of Rex, said the company made steady progress last year regarding the development of a CCS project at its One Earth Energy ethanol plant in Gibson City, Illinois. Construction on the capture and compression portions of the project were substantially completed last year. The company is currently awaiting U.S. EPA approval for a Class VI injection well. Rizvi said the agency expects to issue that permit in October. “We are hopeful that once we have obtained [that] permit, we ill be able to move forward with other required state and local permitting,” Rizvi said.
Illinois last year enacted a moratorium on the permitting and construction of new CO2 pipelines. The moratorium is in place for either two years, or until approval and promulgation of new federal pipeline safety guidelines, whichever comes first. Rizvi expressed optimism that the Trump administration will accelerate development the required pipeline safety regulations.
Rex also made progress with a capacity expansion project at One Earth Energy. According to Rizvi, company management is currently reviewing certain elements of the expansion plan. As a result of that review, the estimated timeline for completion of the expansion project will extend past the previous mid-2025 target. Rex previously indicated the expansion project initially aims to boost capacity at One Earth Energy to 175 MMgy. Additional permitting activities would increase nameplate capacity to 200 MMgy.
Doug Bruggeman, chief financial officer at Rex, said the company sold 289.7 million gallons of ethanol last year, up from 285.9 million gallons in 2023. Fourth quarter volume were 74.7 million gallons, up from 72.1 million gallons. Corn oil sales were up 1% for the year, reaching 88.1 million pounds. Dried distillers grains sales were down 3%, but modified distillers grains sales were up.
Rex reported fiscal fourth quarter net sales and revenue of $158.2 million, down from $187.6 million. Net income was $11.1 million, compared to $20.6 million. Diulted net income per share attributable to Rex common share holders was 63 cents, compared to $1.16 per share during the fourth quarter of 2023.
For the full year 2024, Rex reported net sales and revenue of $642.5 million, down from $833.4 million in 2023. Net income attributable to Rex shareholders was $58.2 million, compared to $60.9 million. Full fiscal year dilute net income per share attributable to Rex common shareholders was $3.30, compared to $3.47 per share in fiscal year 2023.
Rex is the majority owner of Gibson City, Illinois-based One Earth Energy LLC and Marion, South Dakota-based NuGen Energy LLC. Those two facilities currently have a combined capacity of 300 MMgy. The company also holds ownership shares in West Burlington, Iowa-based Big River Resources West Burlington LLC; Galva, Illinois-based Rig River Resources Galva LLC; Dyersville, Iowa-based Big River United Energy LLC; and Boyceville, Wisconsin-based Big River Resources Boyceville LLC. Those four plants have a combined capacity of 425 MMgy.
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Source : Ethanol Producer Magazine
