SIRE releases fiscal third quarter financial results

By Erin Voegele | August 30, 2017

Southwest Iowa Renewable Energy recently released financial results for its third fiscal quarter of 2017, the three months ended June 30. The company reported net income of $1.9 million for the quarter, or $144.74 per basic unit, compared to a net loss of $300,000, or $20.48 per basic unit, during the same three months of last year.

Revenue from operations reached $54.1 million for the quarter, compared to $58.1 million for the same period of 2016. Modified EBITDA was $5.2 million, up from $4.4 million during the same three-month period of last year.

“In the third quarter of fiscal 2017, we continued to see an increase in our cost of corn as compared to the prior quarters in 2017,” said Brian Cahill, president and CEO of SIRE. “Seasonal influences have increased corn inventories during the current quarter. Demand for ethanol has been strong, both in the U.S. and abroad. The industry has continued to adjust, and we expect margins to remain positive, but are becoming more dependent on continued good export demand."

During the third quarter of fiscal 2017, SIRE produced 30.0 million gallons of ethanol, compared to 30.9 million gallons during the third quarter of fiscal 2016. "We continue to evaluate and implement new production technology,” Cahill said. “The production numbers for the quarter were impacted by a longer than planned shutdown period in April, and rail car availability throughout the quarter. We will continue to focus on running the plant efficiently, with a balance of optimizing the yield and profit."

SIRE’s ethanol sales reached $44.26 million during the quarter, or 81.9 percent of revenues, down slightly from $45.2 million, or 77.8 percent, during the same quarter of last year. Distillers grains sales reached $6.97 million, accounting for 12.9 percent of revenue. During the third quarter of fiscal year 2016, distillers grains sales reached $10.2 million and accounted for 17.5 percent of revenues. Corn oil sales reached $2.6 million during the quarter, accounting for 4.8 percent of revenues. During the same period of last year, corn oil sales reached $2.4 million and accounted for 4.1 percent of revenues. Other product sales generated $223,000 during the quarter, accounting for 0.4 percent of revenue. During the same period of 2016, sales of other products generated $329,000, or 0.6 percent of revenues.