The performance of Pacific Ethanol (PEIX) in the third quarter underscores the debacle that the ethanol industry is in the United States.
Losses for the company widened by an extraordinary amount, surging to $54.9 million, or 98 cents a share, in contrast to the same quarter last year where losses were at $4.8 million.
This happened while revenue increased to $184 million, up from $118.1 million last year. Analysts were looking for revenue to reach $218.6 million. The 98 cents a share was also far higher than the 16 cents a share analysts expected.
It's time to end government subsidies and end the ethanol fiasco in the U.S. Even with subsidies the industry isn't viable, and saying cellulosic ethanol is the answer is wrong as well, as it costs far more to produce than the corn-based ethanol we're now producing.
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