Southwest Iowa Renewable posts profit in Q4 FY 2012/13

Nov 15, 2013 - US ethanol producer Southwest Iowa Renewable Energy LLC (SIRE) on Wednesday said it had swung to a net profit of USD 4.1 million (EUR 3m) in its fourth quarter to end-September from a loss of USD 1.5 million a year earlier.

President and CEO Brian Cahill noted that the US corn production was “recovering well” after the drought in 2012, with the US Department of Agriculture projecting record-high 13.89 billion bushels of corn for 2013.

The company’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) jumped to USD 9 million from USD 1.1 million.

Still, revenues in July-September slipped to USD 350.2 million from USD 362.9 million. The firm sold 33.7 million gallons (128 million litres) of ethanol, rising from 30.3 million gallons a year back.

SIRE closed its fiscal 2012/13 with a net loss of USD 5.5 million, widening from USD 660,000. Revenues increased slightly to USD 102.2 million from USD 97.8 million, while ethanol sales stood at 111.8 million gallons, down from 122.6 million gallons.

At the end of September, the company’s cash and cash equivalents amounted to USD 12.4 million. It also had USD 18.1 million available under revolving loan agreements.

(USD 1.0 = EUR 0.744)

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