Financial Update Green Plains Unveils First Quarter 2024 Performance

Green Plains Inc. (NASDAQ:GPRE) unveiled its financial performance for the first quarter of 2024 today. The company reported a net loss attributable to the company of $51.4 million, equivalent to ($0.81) per diluted share. This is compared to a net loss attributable to the company of $70.3 million, or ($1.20) per diluted share, for the same period in 2023. Revenues for the first quarter of 2024 were $597.2 million, a decrease from $832.9 million for the same period last year. Additionally, EBITDA stood at ($21.5) million, compared to ($27.7) million for the same period in the previous year.

Todd Becker, President and CEO, commented on the results, noting weaker margins across their product mix due to industry oversupply during a mild winter. Despite this, he mentioned improvements in margins from the first quarter lows and expressed optimism about the forward curve for the rest of the year. Becker also highlighted the impact of idled plants during the January cold snap and significant planned maintenance programs. He emphasized the strong Ultra-High Protein production and the company’s partnership with Tharaldson, which brings total annual capacity to 430,000 tons.

Becker also discussed the company’s focus on decarbonization, capital reallocation, and the potential for capacity expansions in Nebraska. He emphasized the role of decarbonized alcohol in emerging markets such as Sustainable Aviation Fuel and noted significant commercial interest in their potential to produce low carbon alcohol at scale.

Regarding higher protein concentrations, Becker mentioned progress in selling higher protein concentrations, introducing a new brand called Sequence, and achieving commitments from new global customers. He anticipates exiting 2024 with 20-30% of capacity committed and sold at these higher protein concentrations.

Becker also provided updates on the Clean Sugar Technology facility in Shenandoah, Iowa, highlighting its disruptiveness to traditional supply sources and strong interest from various industries. He mentioned ongoing negotiations with multiple strategic customers and plans for food grade certification in the third quarter.

Looking ahead, Becker expressed optimism about margin improvements and anticipated increased demand as ethanol prices remain at a significant discount to wholesale gasoline, especially with the approaching summer driving season.

In addition to the financial results, Green Plains highlighted recent developments, including the release of its fourth annual Sustainability Report, the operational start of the Tharaldson Ethanol plant, and the commissioning of the York, Nebraska demonstration facility.

The article also provided details on Green Plains’ ethanol production segment, consolidated revenues, net loss, EBITDA, interest expense, and income tax expense for the first quarter of 2024, comparing them to the same period last year. Notable changes included higher margins in the ethanol production segment and decreases in interest expense and income tax expense.

Overall, Green Plains remains focused on navigating industry challenges, capitalizing on growth opportunities, and advancing its sustainability initiatives in the evolving market landscape.

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