Pacific Ethanol reports improved profitability in 2016
California-based Pacific Ethanol increased its net sales and significantly boosted its gross profit in the last quarter of the 2016. The company reported its financial results Wednesday for the three- and twelve-month period that ended December 31.
“Our fourth quarter 2016 performance represents a strong close to a very productive year for Pacific Ethanol,” said Neil Koehler, the company’s president and CEO. “We grew net sales by 17 percent and improved gross profit by $17.2 million compared to the fourth quarter of 2015. These results reflect the benefits of the acquisition and successful integration of our Midwest assets, and the incremental value we have generated through our efforts to optimize all of our plants. In addition, we successfully refinanced our term debt and improved liquidity during the fourth quarter, significantly lowering our cost of capital and accomplishing a major milestone for the company.”
Koehler continued, “The outlook for 2017 is encouraging. We expect ethanol demand to remain strong, supported by healthy exports and increasing gasoline demand. We also continue to evaluate growth opportunities such as plant investment initiatives that further optimize our production, lower our carbon score and produce high-value and near-term returns.”
Pacific Ethanol’s financial results for the three months ended December 31, 2016 Compared to 2015:
-Net sales were $441.7 million, compared to $376.8 million. The increase was attributable to increases in gallons sold from both production and third-party sales, as well as a higher average ethanol sales price per gallon.
-Gross profit was $26.7 million, compared $9.5 million. The improvement reflects stronger production margins in the fourth quarter of 2016.
-Selling, general and administrative (SG&A) expenses were $7.9 million, compared to $7.1 million.
-Operating income was $18.8 million, compared to $0.5 million.
-Net income available to common stockholders was $12.6 million, or $0.30 per share, compared to a net loss of $1.1 million, or $0.03 per share.
-Adjusted EBITDA was $27.4 million, compared to $11.0 million.
-Cash and cash equivalents were $68.6 million at Dec. 31, 2016, compared to $52.7 million at Dec. 31, 2015.
Financial results for the 12 months ended Dec. 31, 2016, compared to 2015
-Net sales were $1.63 billion, compared to $1.19 billion.
-Gross profit was $51.8 million, compared to $7.4 million.
-SG&A expenses were $28.3 million, compared to $23.4 million.
-Operating income was $23.5 million, compared to an operating loss of $18.0 million.
-Adjusted EBITDA was $58.9 million, compared to $16.1 million.
More detailed information about Pacific Ethanol's financial performance can be found here.