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Dec 31, 2024
Green Plains Q4 2024 Earnings Report
Reported a net loss with revenues decreasing due to lower weighted average selling prices and volumes, while launching a cost reduction initiative.
Key Takeaways
Green Plains Inc. reported a net loss of $54.9 million for Q4 2024, compared to a net income of $7.2 million in the same period of 2023. Revenues decreased to $584.0 million from $712.4 million year-over-year. The company launched a corporate reorganization and cost reduction initiative targeting $50 million in annualized savings.
Launched a corporate reorganization and cost reduction initiative to reduce ongoing expenses by up to $50 million annually.
Nebraska platform carbon capture operations are on pace to begin sequestering biogenic carbon dioxide in the second half of the year.
Commenced operations at the clean sugar facility and secured religious certifications and the Iowa Food Processer license.
DCO is now clearly an advantaged feedstock as evidenced by the recent premium prices received verses soybean oil for use in renewable diesel production.
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 significant earnings potential from cost reduction initiatives and carbon capture projects, expecting a combined $180 million annualized contribution. The company also sees favorable conditions in DCO markets and potential improvements in ethanol market.
Positive Outlook
- Cost reduction initiatives are expected to achieve up to $50 million in annualized savings.
- Carbon capture operations in Nebraska are expected to commence in the second half of the year, contributing to earnings.
- The 'Advantage Nebraska' strategy is progressing with permitting, construction, and regulatory guidance milestones achieved.
- DCO is now clearly an advantaged feedstock as evidenced by the recent premium prices received verses soybean oil for use in renewable diesel production.
- Ethanol blending continues to inch higher and with several idled plants across the industry, including Fairmont, we expect to see ethanol physical stocks improve as we move through the year, which could lead to a more constructive environment.
Challenges Ahead
- Global and local protein markets remain oversupplied.
- Fairmont, Minnesota facility is being idled due to sustained localized margin pressure from flooding.
- Clean sugar facility is running at a reduced rate and may be idled at times to maximize site earnings.
- Net loss attributable to Green Plains increased $62.2 million and EBITDA decreased $63.6 million for the three months ended December 31, 2024, compared with the same period last year, due to lower margins in our ethanol production segment.
- Consolidated revenues decreased $128.4 million for the three months ended December 31, 2024, compared with the same period in 2023, primarily due to lower weighted average selling prices on ethanol, distillers grains and renewable corn oil in addition to lower ethanol and distillers grains volumes sold within our ethanol production segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income