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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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