BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Agriculture

Green Plains highlights low ethanol crush margin driving Q4 loss: CEO

Fuel Oil | Marine Fuels

Off-spec Houston bunker fuel sparks contamination crisis

Agriculture | Biofuels

Platts Biofuelscan

Oil | Crude Oil

Platts Workshop at the S&P Global Platts Energy

Agriculture

US EIA says ethanol output dips to 1.072 million b/d while stocks build on week

Green Plains highlights low ethanol crush margin driving Q4 loss: CEO

Houston — Green Plains' $6.2 million fourth-quarter 2017 net loss was driven by a lower consolidated crush margin and certain spikes in operating costs, the ethanol producer's CEO, Todd Becker, said Thursday. "We came into the quarter partially hedged but physical markets reached multi-year lows. What would trade 10-12 cents under [the paper market] saw days as low as 17 cents under," Becker said during the company's fourth-quarter earnings call.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"We saw some slippage of several pennies that we haven't experienced before this year as an entire industry."

Becker added that the company's consolidated crush margin for the year was 10 cents/gal. That was its second-lowest year ever, with the lowest occurring in 2012 when the consolidated margin was 9 cents/gal.

Operating costs were streamlined overall, Becker said, but some outliers caused spikes.

The company acquired three plants in September that raised operating expenses.

"It can take 1.5-two years to get a plant in line with our other plants," Becker said, referring to aligning plants' operating expenses with the rest of the company.

Green Plains also plans to upgrade efficiency at its Madison, Illinois, ethanol plant.

"The Madison, Illinois, plant is an outlier [in operating costs]. We plan to convert the plant from batch production to continuous," Becker said.

--Josh Pedrick, joshua.pedrick@spglobal.com
--Edited by Richard Rubin, richard.rubin@spglobal.com