Pacific Ethanol (Nasdaq:PEIX) announced recently it is reorganizing the company in order to bring its four production subsidiaries out of bankruptcy.
They opened up the Magic Valley plant located in Idaho earlier in the year, and have plans to open up two more idled ethanol plants soon.
Lenders have already approved of the reorganization plan, and the two idled plants, which are both located in California, may resume production by the end of June.
Pacific Ethanol will be allowed to acquire up to 25 percent of the overall ownership in the new holding company, which has the subsidiaries transferred to it. The cost will be up to $30 million in cash.
Two plants wholly owned by Pacific are now operational - one in Boardman, Oregon, and the other in Burley, Idaho.
Combined they can produce up to 100 million of ethanol annually.
Showing posts with label Pacific Ethanol. Show all posts
Showing posts with label Pacific Ethanol. Show all posts
Thursday, June 10, 2010
Saturday, January 10, 2009
Pacific Ethanol Shuts Down Madera Plant
Pacific Ethanol (PEIX) continues to fight to survive, as they have now shut down the Madera plant, although they say it's only a temporary move.
This follows their disastrous third quarter, where "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."
None of this will end any time soon, as on average ethanol is 60 cents higher in cost than gasoline, and make gas prices higher when included in the mix. Consequently, demand continues to fall, in spite of the misguided subsidies offered by the government.
Take the subsidies out of there, and the real story would be far worse for this ongoing debacle that is becoming more of a religion than at legitimate alternative.
This has pummeled the company's stock, which on January 9, 2008 was at $8 a share, now it stands at a pathetic 56 cents a share.
We need to end this ignorant pursuit of corn-based ethanol, and cellulosic ethanol as well. Those of the ethanol religion are now attempting to get the mind of the public off the corn-based ethanol debacle and make it look like the even more expensive cellulosic ethanol is the answer.
This follows their disastrous third quarter, where "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."
None of this will end any time soon, as on average ethanol is 60 cents higher in cost than gasoline, and make gas prices higher when included in the mix. Consequently, demand continues to fall, in spite of the misguided subsidies offered by the government.
Take the subsidies out of there, and the real story would be far worse for this ongoing debacle that is becoming more of a religion than at legitimate alternative.
This has pummeled the company's stock, which on January 9, 2008 was at $8 a share, now it stands at a pathetic 56 cents a share.
We need to end this ignorant pursuit of corn-based ethanol, and cellulosic ethanol as well. Those of the ethanol religion are now attempting to get the mind of the public off the corn-based ethanol debacle and make it look like the even more expensive cellulosic ethanol is the answer.
Monday, November 10, 2008
Pacific Ethanol Performance Underscores Ethanol Debacle
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.
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.
Monday, August 11, 2008
Happy Corn Subsidy Pacific Ethanol: Company Gets Clobbered with High Corn Prices
Talk about a self-inflicted wound! In a second-quarter report for Pacific Ethanol Inc. (Nasdaq:PEIX), the company said it lost to common stockholders of $10.5 million, or 23 cents a share. That's almost double the 12 cents a share loss analysts were looking for.
Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.
Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.
Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.
Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.
For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.
The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.
Taking into account the increase in net sales of $198 million, which is a boost of 74percent, it makes it even worse. During the second quarter last year net sales were $113.8 million.
Of that revenue increase, 52 percent was connected to increased sales, and another 10percent to increasing prices, among other things.
Gallons sold for the quarter reached 66.8 million, up from the 43.9 million gallons sold during the same period in 2007. Ethanol prices averaged $2.55 a gallon, up 23 cents.
Corn prices surged by 67 percent in the second quarter over the prices in the same quarter last year.
For the six-month period ending June 30, net losses came in at $359.5 million, increasing by 69 percent. Last year losses were $213 million net. Sales volume during the six-month perod grew by 52 percent or 126 million gallons, up from the 82.8 million gallons last year. Average ethanol prices for the period came in at $2.43, an increase from the $2.29 last year. Corn prices during the same time were up 64 percent on average.
The corn subsidy effect on prices continues to haunt those in the food industry, even those like Pacific Ethanol who are trying to exploit the taxpayer funded fiasco.
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