The Andersons reports strong Q3 for ethanol operations
The Andersons Inc. reported record third-quarter results for its renewables segment, with pretax income of $53 million and EBITDA of $65 million, driven by strong ethanol margins and improved operating performance. Ethanol plant efficiency and lower corn basis contributed to this growth. The company also made progress on reducing carbon intensity and enhancing renewable diesel feedstock production, maintaining a positive outlook.
November 6, 2024
The Andersons Inc. released third quarter financial results on Nov. 5, reporting record third-quarter pretax income for its renewables segment on strong operating performance and improved ethanol margins.
The renewables segment reported pretax income of $53 million and pretax income attributable to the company of $28 million for the three-month period, up from $47 million and $26 million, respectively, for the third quarter of last year. EBITDA was $65 million, compared to $60 million.
According to The Andersons, margins on ethanol production improved year-over-year on significantly lower corn basis in the eastern plants, despite a reduction in ethanol board crush margins during the quarter. The company’s ethanol plants continued to operate efficiently with increased volume and higher ethanol yields.
Ethanol plant coproduct values were lower, but feed ingredient demand improved year-over-year, the company reported. The production of renewable diesel feedstock volumes continued to grow during the quarter, but with compressed margins on industry fundamentals.
All four of The Andersons’ ethanol plants completed their semi-annual maintenance shutdowns during the third quarter. The company currently expects the favorable ethanol margin environment to continue, supported by exports, higher blending rates and continued lower corn basis levels in the East.
Bill Krueger, president and CEO of The Andersons, said the renewables business is an important part of the company’s long-term growth strategy. The Andersons continues to make progress on plans to lower the carbon intensity (CI) of its ethanol, he added. Those efforts include investments at its plants and the development of regenerative ag programs for the company’s producers that should allow it to acquire lower-CI corn as feedstock in the future. “The outlook for this business remains positive, and we are evaluating several opportunities in this space,” Krueger said.
Overall, The Andersons reported net income attributable to the company of $27.4 million, or 80 cents per diluted share, compared to $4.6 million, or 28 cents per diluted share, during the same period of last year. Adjusted EBTIDA was $97.4 million, up from $70.3 million.
Source Link : https://ethanolproducer.com/articles/the-andersons-reports-strong-q3-for-ethanol-operations
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