August 30 (Renewables Now) - REX American Resources Corp (NYSE:REX) on Tuesday said its net profit attributable to shareholders rose more than three-fold in its fiscal second quarter through July compared to a year ago, up to USD 9.2 million (EUR 7.9m), aided by improvement in its ethanol and by-products segment.
The company has interests in six ethanol plants, two of which consolidated, and a refined coal business that was acquired last year. The higher profit also reflects lower tax rates related to the refined coal operation and the enactment of the 2017 Tax Cuts and Jobs Act.
Profit before taxes from the ethanol and by-products segment rose 37.5% to USD 10.1 million, while the refined coal operation recorded a pre-tax loss of USD 4.8 million.
REX's total net sales and revenue grew 18.2% to USD 128.8 million on the back of higher volumes of ethanol gallons sold, along with higher average selling prices for dried and modified distillers grains during the quarter, which more than compensated for lower average ethanol prices.
Chief executive Zafar Rizvi said the gains in net sales and revenue and in gross profit and pre-tax profit from the ethanol and by-products segment were achieved despite challenging ethanol crush spread trends that prevailed in the quarter and reflect an increase in distillers grain pricing, the efficiencies of the company's plants and its investments in expanding production of its consolidated plants which allowed it to increase the volume of ethanol sold by 18.6% year-over-year.
|in USD millions||fiscal 2018 Q2||fiscal 2017 Q2||fiscal 2018 H1||fiscal 2017 H1|
|Net sales and revenues||128.8||108.7||249.6||221.9|
|Profit before income taxes||4.9||6.5||12.5||14.5|
|Net profit attributable to REX common shareholders||9.2||2.9||18.7||7.5|
(USD 1 = EUR 0.856)