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Sep 30, 2021
Green Plains Q3 2021 Earnings Report
Reported a net loss due to near-record corn basis levels and maintenance shutdowns, but anticipates a strong full year and improved results in 2022 with transformation plan execution.
Key Takeaways
Green Plains reported a net loss of $59.6 million for the third quarter of 2021, impacted by high corn basis levels and maintenance. However, the company is optimistic about achieving long-term goals with its low-carbon strategy and expects improved results in 2022.
Final commissioning of the Wood River Fluid Quip MSC system is underway, with value-added ingredient shipments expected in November.
Multi-year MOU signed for Ultra-High Protein sales into pet food through 2023, with increased sales volumes expected in 2022.
Clean Sugar pilot plant continues to produce low-carbon sugars, with ongoing discussions for potential co-location opportunities.
Expect completion of four Ultra-High Protein facilities over the next 12 months.
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 anticipates full year to finish strong and above our long-term view of the Green Plains 1.0 platform and on track to deliver improved results into 2022.
Positive Outlook
- Expect to begin shipping value-added ingredients as early as November.
- Expect renewable corn oil’s financial contribution to remain strong, supported by both higher yields and higher prices.
- Expect to have the capacity to produce over 330 million pounds of renewable corn oil annually by the end of 2022.
- Negotiating additional multi-year distribution and supply agreements.
- Believe this technology can differentiate Green Plains as we use the Fluid Quip IP portfolio to transform our sites into modern day bio-campuses.
Challenges Ahead
- Net loss attributable to the company was $59.6 million.
- The third quarter results of $0.01 per gallon consolidated crush margin were impacted by the near-record physical corn basis levels.
- Accelerated completion of maintenance shutdowns.
- Previously announced MTM timing reversals.
- Operating loss increased $30.5 million for the three months ended September 30, 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income