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Jun 30, 2020
Green Plains Q2 2020 Earnings Report
Announced financial results, showing a reduced net loss compared to the same period last year and progress in the company's transformation plan.
Key Takeaways
Green Plains Inc. reported a net loss of $8.2 million for the second quarter of 2020, a significant improvement from the $45.3 million loss in the same period of 2019. The company saw revenues of $418.0 million, and positive adjusted EBITDA of $17.9 million, driven by high-quality alcohol production, Project 24 initiatives, high protein production, and a strong performance in the cattle business.
Net loss attributable to the company was $8.2 million, or $(0.24) per diluted share.
Revenues were $418.0 million for the second quarter of 2020.
Adjusted EBITDA was $17.9 million.
The company completed over 55% of the originally planned Project 24 initiatives.
Green Plains
Green Plains
Green Plains Revenue by Segment
Revenue by Segment
Ethanol Production Revenue
CapyFin.comAgribusiness and Energy Services Revenue
CapyFin.com Forward Guidance
Green Plains is focusing on Project 24 initiatives and high protein strategy which are expected to lower operating costs and enhance the quality and nutritional factors of their high protein products.
Positive Outlook
- Project 24 upgrade at Green Plains Fairmont completed and starting operations, reducing operating costs and carbon footprint.
- Green Plains Mount Vernon’s Project 24 conversion is underway and is expected to be in service during the fourth quarter 2020.
- Project 24 is expected to be complete by the end of the first quarter 2021, and to drive overall operating expense below $0.24 per gallon.
- Shenandoah’s high-protein facility achieved 100% production of quality high protein ingredients.
- Wood River, Nebraska facility chosen for the second location for implementation of high protein production, expected completion late in the second quarter of 2021.
Challenges Ahead
- Disruption caused by health epidemics, such as the coronavirus outbreak.
- Competition in the industries in which Green Plains operates.
- Commodity market risks.
- Financial market risks.
- Counterparty risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income