On August 6, 2024, Green Plains Inc (GPRE, Financial) released its 8-K filing for the second quarter of 2024. Green Plains Inc manufactures and sells ethanol and ethanol byproducts in three segments: ethanol production, agribusiness and energy services, and partnership.
Performance Overview
Green Plains Inc (GPRE, Financial) reported a net loss attributable to the company of $24.4 million, or $(0.38) per basic and diluted share, for Q2 2024. This is an improvement compared to a net loss of $52.6 million, or $(0.89) per share, in the same period last year. However, the company missed the analyst revenue estimate of $674.65 million, reporting $618.8 million in revenue, down from $857.6 million in Q2 2023.
Key Financial Achievements
Despite the revenue decline, Green Plains Inc (GPRE, Financial) achieved several financial milestones:
- EBITDA improved to $4.8 million, a $19.7 million increase from the prior year.
- Record platform renewable corn oil yields and Ultra-High Protein platform yields were achieved in June.
- Entered into a definitive agreement to sell the unit train terminal in Birmingham, Ala., to repay the outstanding balance of the Green Plains Partners term loan.
Segment Performance
The ethanol production segment sold 208.5 million gallons of ethanol during Q2 2024, compared to 194.8 million gallons in Q2 2023. The consolidated ethanol crush margin was $22.7 million, up from $4.6 million in the same period last year. However, revenues in the ethanol production segment decreased by 27.9% to $525.4 million.
| Segment | Q2 2024 Revenue ($000) | Q2 2023 Revenue ($000) | % Change |
|---|---|---|---|
| Ethanol Production | 525,443 | 728,935 | -27.9% |
| Agribusiness and Energy Services | 100,949 | 135,823 | -25.7% |
| Intersegment Eliminations | (7,567) | (7,126) | 6.2% |
| Total | 618,825 | 857,632 | -27.8% |
Income Statement Highlights
Green Plains Inc (GPRE, Financial) reported a gross margin of $37.8 million, up from $15.5 million in Q2 2023. The operating loss narrowed to $17.7 million from $42.5 million in the same period last year. Interest expense decreased by $2.2 million, primarily due to lower working capital revolver balances.
Balance Sheet and Cash Flow
As of June 30, 2024, Green Plains Inc (GPRE, Financial) had $225.1 million in total cash and cash equivalents, and restricted cash. Total debt outstanding was $610.2 million. The company continues to focus on reducing debt and improving liquidity.
Commentary and Outlook
"While the second quarter started with continued weakness, margins began to improve heading into the third quarter and we expect to return to profitability for the quarter based on current markets across our products and setting up a stronger second half of the year overall," said Todd Becker, President and Chief Executive Officer.
Green Plains Inc (GPRE, Financial) remains optimistic about its future, with a strong EBITDA outlook for the third quarter and the second half of 2024. The company is also progressing towards its transformation goals, including new high protein capacity and carbon capture initiatives.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Green Plains Inc for further details.
