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Mar 31, 2020
Green Plains Q1 2020 Earnings Report
Green Plains experienced a net loss but demonstrated resilience through risk management and cost reduction strategies.
Key Takeaways
Green Plains Inc. reported a net loss of $16.4 million, or $(0.47) per diluted share, for the first quarter of 2020, compared to a net loss of $42.8 million, or $(1.06) per diluted share, for the same period in 2019. Revenues increased to $632.9 million from $438.6 million year-over-year. The company's performance was supported by risk management programs and cost reduction efforts, resulting in a strong cash position of over $205 million.
Net loss attributable to the company was $16.4 million, an improvement from the $42.8 million loss in Q1 2019.
Revenues increased to $632.9 million compared to $438.6 million in the same period last year.
The company's risk management programs and Project 24 initiative positively impacted margins and reduced operating costs.
Green Plains had over $205 million in cash at the end of the first quarter, maintaining a strong liquidity position.
Green Plains
Green Plains
Green Plains Revenue by Segment
Revenue by Segment
Ethanol Production Revenue
CapyFin.com Forward Guidance
Green Plains anticipates a positive impact on the second quarter due to sales of FDA approved FCC Grade alcohol for use in hand sanitizers and cleaning products and completion of Project 24 upgrades.
Positive Outlook
- Successful startup of high protein production at Shenandoah biorefinery.
- Project 24 upgrades are on track to enhance operational competitiveness.
- Green Plains Cattle Company achieved record results due to strong demand.
- Sales of FDA approved FCC Grade alcohol for sanitizers are expected to positively impact Q2.
- The company anticipates these sales will have a positive impact on the second quarter.
Challenges Ahead
- COVID-19 pandemic and related economic repercussions have created significant volatility.
- Deterioration in prices and demand for energy commodities and motor fuels, including ethanol.
- Uncertainty regarding the overall impact of COVID-19 on the company's financial position and operations.
- The GPP revolving credit facility will mature on July 1, 2020 unless extended.
- Market capitalization declined significantly due to macroeconomic conditions and the COVID-19 pandemic which led to a drop in demand for ethanol globally.