Alto Ingredients Inc (ALTO)

[Dutch1]

PEIX is looking great for the future!!!

From the transcript:

We are currently running our production assets at approximately 85% of capacity. Collectively the industry needs to reduce overall inventory levels, and we are doing our part. As we move to higher ethanol demand from the summer driving season and continue to see strong exports, we expect to see a better supply and demand balance.

So we could expecting higher prices for ethanol and a decrease of ethanol supplies. Looking good!!!

We expect future growth from increased demand for ethanol as a low cost, high octane fuel component in gasoline. We believe higher octane fuels will be necessary to drive the more fuel efficient higher compression engines that will be manufactured by the auto companies to meet higher mileage standards. As ethanol is the cheapest source of octane available today, this represents a significant opportunity for the industry.

Especially on the long term!

With the acquisition last year and strong operational performance at our plants and our ethanol marketing company, we are well positioned to manage through leaner times while supporting profitable growth in more favorable market conditions.

In 2016, we’re focused on several initiatives to support our long-term growth. First, we are optimizing the integration of the Midwest assets, and we expect to further benefit from financial and operational synergies throughout the year. Second, we’re focused on leveraging our diverse base of production and marketing assets to expand our share of the renewable fuels and co-product markets.

Third, we will carefully evaluate and execute plant improvement initiatives that provide near-term meaningful returns. And fourth, we will work to further lower our carbon score by modifying existing operations and investing in new technologies such as cogeneration, anaerobic digestion and solar power generation.

Current and expected carbon pricing in states with low carbon fuel standards such as California and Oregon, where we have production assets, helps support the investment case for these technologies. We believe these strategic initiatives will support our success in the months and years ahead.

Holding strong! Long PEIX !!! GLTA !!!