GPRE Corn Oil Revenues Surge 143.4%!
(( POSTED BY SLASHNUTS OVER ON THE GERS MESSAGE BOARD ))
GPRE Corn Oil Revenues Surge 143.4% In 3 Months!
Corn Oil Gets It's Own Segment! Cool!
"Corn Oil Production Segment
In the second quarter of 2011, we redefined our operating segments to include corn oil production as a reportable segment. Corn oil production, which we initiated in October 2010, was previously reported as a component of our marketing and distribution segment. By June 30, 2011, we had deployed corn oil extraction technology at eight of our nine ethanol plants with plans to implement the technology at our recently-acquired Otter Tail plant by the end of third quarter of 2011. During the three months ended June 30, 2011, we produced 21.5 million pounds of corn oil which is double the amount reported for the first quarter of 2011, or 10.1 million pounds."
Pounds of oil extracted were 7.5% higher than the 20 million expected.
Corn oil revenues increased 143.4% over last quarter.
Corn oil production revenues
$10,520,000
Gallons produced from 21,500,000 pounds, 2,803,129 (Using 7.67#'s per gallon).
Price per gallon of inedible crude corn oil $3.75
Greenshift's 20% royalty per gallon $.75
Greenshift's cut for the quarter $2,104,000
Mr. Becker commented last quarter that there was some confusion about crude corn oil prices. He said the $.615 cent price is for edible food grade crude corn oil.
The oil that's extracted under GERS' license is inedible non food grade crude corn oil that trades at a discount(about 15%) to soy oil.
At only 3% extraction rates, 2.6 billion gallons @ $.75 per gallon is over $14 million per quarter not including equipment sales or services. At 4.4% extraction, that's $21.5 million per quarter, not including equipment/construction revenues.
How much debt is left to Y/A? Less than $20 million?
"We expect our profitability to improve sequentially over the next two quarters, as ethanol margins have expanded over the last 90 days. We have been able to lock away significant portions of our ethanol margins, all corn oil production will be online and the market remains strong for each of these products. Our agribusiness segment should have a solid finish in 2011 as crops around our facilities are currently in good shape," commented Becker.
Nice, Good To Hear!
Sentiment : Strong Buy
