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Jun 30, 2023
Green Plains Q2 2023 Earnings Report
Reported a net loss due to operational setbacks, including downtime at the Wood River plant, but anticipates a stronger second half of 2023 with improved industry margins and increased production rates.
Key Takeaways
Green Plains Inc. reported a net loss of $52.6 million, or ($0.89) per diluted share, for the second quarter of 2023, compared to a net income of $46.4 million, or $0.73 per diluted share, for the same period in 2022. Revenues decreased to $857.6 million from $1,012.4 million year-over-year. The company experienced operational challenges, including downtime at its Wood River plant, but expects a significantly stronger second half of 2023 due to improved industry margins and increased production rates.
Net loss attributable to the company was $52.6 million, or ($0.89) per diluted share.
Revenues were $857.6 million for the second quarter of 2023.
Consolidated crush margin was $0.01 per gallon for the second quarter.
EBITDA of ($15.0) million compared to $84.4 million inclusive of a USDA COVID-19 relief payment of $27.7 million for the same period in the prior year.
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
EBITDA for the last half of 2023 is projected to be materially stronger based on current industry margins, strong year-over-year Ultra-High Protein sales with expanding margin structure, recovery of renewable corn oil pricing and the return to full production operating rates
Positive Outlook
- Fundamentals for the company's strategy have improved across protein, oil, sugar, and carbon.
- Driving demand remains robust.
- Protein margins have expanded.
- Renewable corn oil prices have improved.
- Clean sugar facility at Shenandoah and MSC turnkey project with Tharaldson are both on track to come online in the first quarter of 2024.
Challenges Ahead
- The quarter was negatively impacted by operational events.
- Wood River plant was down for most of the quarter.
- Experienced planned and unplanned downtime at many of largest facilities.
- Lower volumes sold on ethanol, distillers grains and renewable corn oil.
- Lower weighted average selling prices on distillers grains and renewable corn oil.
Revenue & Expenses
Visualization of income flow from segment revenue to net income