Pacific Ethanol swings to USD-1.1m net profit in Q2 2013

Jul 25, 2013 - US biofuel maker Pacific Ethanol Inc (NASDAQ:PEIX) said yesterday it had turned to a consolidated second-quarter 2013 net profit of USD 1.1 million (EUR 833,000) after a loss of USD 10 million a year earlier.

The turnaround was attributed to the improved market environment, higher selling prices for ethanol and the fact that the company focused on enhancing its operating efficiency, as well as its increased ownership in ethanol plants, president and CEO Neil Koehler explained.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in April-June came in at USD 6.6 million, compared to a negative USD 1.5 million in the same period of 2012.

Operating profit amounted to USD 3.8 million, against an operating loss of USD 8 million, helped by higher commodity margins at Pacific Ethanol's plants.

Net sales in the three months rose by 14% quarter-on-quarter to USD 233.8 million, thanks to the higher average price per gallon of ethanol sold. In the year-ago period the company generated sales of USD 205.4 million.

Pacific Ethanol closed the first half of 2013 with a consolidated net loss of USD 5.5 million, narrowing its deficit of USD 24 million from a year back. Sales increased to USD 459.3 million from USD 403.2 million.

(USD 1.0 = EUR 0.757)

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