US ethanol companies Pacific Ethanol Inc and Green Plains Inc posted losses for the second quarter of 2017 as their performance was hit by weak ethanol margins.
Pacific Ethanol swung to a net loss of USD 9.2 million from a net profit USD 4.7 million in the same period of 2016. It saw its net sales fall to USD 405.2 million from USD 422.9 million. Green Plains, meanwhile, reported a net loss of USD 16.4 million against a net profit of USD 8.2 million a year back on revenues that declined slightly to USD 886.3 million from USD 887.7 million.
Pacific Ethanol’s head Neil Koehler said ethanol production margins were weak in the face of record ethanol production volumes and high ethanol inventory levels during the quarter.
Both companies said that domestic and export demand for ethanol remains strong and Green Plains projected better performance in the third and fourth quarters.
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Pacific Ethanol, Green Plains post losses for Q2