Rex reports increased sales for fiscal Q3

By Erin Voegele | December 02, 2021

Rex American Resources Corp. released fiscal third quarter financial results on Dec. 1, reporting a 63 percent increase in sales for the quarter despite a reduction in gallons sold. The company attributed the increase to higher pricing for ethanol and coproducts.

Doug Bruggeman, chief financial officer of Rex, said the company sold 69 million gallons of ethanol during the third quarter, down from 74.6 million gallons during the same period of last year. He primarily attributed the drop in gallons sold to limited corn supply at the beginning of the quarter.

Zafar Rizvi, CEO of Rex, said both of the company’s majority owned plants are operating at near capacity, but noted that logistics problems continue to be challenging and are beginning to get worse with respect to railroad transport and the availability of containers and trucks for distillers grains.

Rizvi also briefly discussed the carbon capture project the company is developing at the One Earth Energy facility in partnership with the University of Illinois. A test well for that project is expected to be complete in January 2022, and FEED studies for the project are underway he said, stressing that the project is at a very preliminary stage.

Stuart Rose, executive chairman of Rex, said fourth quarter crush spreads are currently higher than in the previous water. He noted that Rex continues to look for high-quality ethanol plant to acquire, but said nothing is imminent at this time. According to Rose, Rex is also open to considering investment in other alterative energy projects and carbon capture opportunities.

Rex reported net sales and revenue of $203.1 million for the third quarter, which ended Oct. 31, up from $124.2 million during the same period of last year. Gross project was $25.2 million, up from $18.9 million. Net income attributable to Rex shareholders was $15.3 million, up from $8.8 million. Basic and diluted net income per share attributable to Rex common shareholders was $2.56, compared to $1.44 during the third quarter of 2020.

Rex currently holds ownership interest in six ethanol plants, including 75.8 percent ownership interest in Gibson City, Illinois-based One Earth Energy LLC, 99.7 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC, 10.3 percent ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC, 10.3 percent ownership interest in Galva, Illinois-based Big River Resources Galva LLC, 5.7 percent ownership interest in Dyersville, Iowa-based Big River United Energy LLC, and 10.3 percent ownership interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.