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Sep 30, 2022
Green Plains Q3 2022 Earnings Report
Reported a net loss due to record high corn basis levels and accelerated seasonal maintenance.
Key Takeaways
Green Plains Inc. reported a net loss of $73.5 million for Q3 2022, compared to a net loss of $59.6 million for the same period in 2021. The financial performance was largely driven by record high corn basis levels across the platform, resulting in a weak ethanol margin environment. However, the company anticipates an improved and positive fourth quarter margin environment and remains confident in delivering on its transformation plan.
Net loss attributable to the company was $73.5 million, or $(1.27) per basic and diluted share.
Revenues were $955.0 million compared with $746.8 million for the same period last year.
The company ended the quarter with $512.4 million of cash, cash equivalents, restricted cash and marketable securities.
Commissioning of MSC technology is on track to operate at over 50% of the platform by the end of 2022.
Revenue by Segment
Forward Guidance
Green Plains anticipates an improved and positive fourth quarter margin environment and remains confident of the fundamentals in protein, oil, sugar and carbon to deliver on its transformation plan.
Positive Outlook
- Anticipate an improved and positive fourth quarter margin environment.
- Balance sheet remains strong.
- Path to 2024 remains fully intact.
- MSC technology operating at over 50% of platform by the end of 2022.
- Expect higher volumes in all sectors and have begun to contract sales for next year.
Challenges Ahead
- Third quarter financial performance was largely driven by record high corn basis levels.
- Weak ethanol margin environment.
- Accelerated seasonal maintenance at 10 of 11 plants.
- Added repairs and maintenance costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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