Green Plains Inc (GPRE) Reports Q3 2023 Earnings: Net Income of $22.3M, EBITDA of $52.0M
Green Plains Inc (NASDAQ:GPRE) reported a net income of $22.3 million in Q3 2023, a significant turnaround from a net loss of $73.5 million in the same period last year.
The company's EBITDA stood at $52.0 million, compared to a negative EBITDA of $35.6 million in Q3 2022.
Revenues were $892.8 million, down from $955.0 million in Q3 2022.
Plant utilization rate was at 93.9%, indicating a return to consistent operations.
Green Plains Inc (NASDAQ:GPRE) released its Q3 2023 earnings report on October 31, 2023. The company reported a net income of $22.3 million, or $0.35 per diluted share, a significant improvement from a net loss of $73.5 million, or ($1.27) per diluted share, for the same period in 2022. The company's EBITDA stood at $52.0 million, compared to a negative EBITDA of $35.6 million in Q3 2022.
Financial Performance and Highlights
Revenues for the third quarter of 2023 were $892.8 million, down from $955.0 million for the same period last year. The company's ethanol production segment sold 223.5 million gallons of ethanol during the third quarter of 2023, compared with 219.2 million gallons for the same period in 2022. The consolidated ethanol crush margin was $48.5 million for the third quarter of 2023, compared with ($20.5) million for the same period in 2022.
"During the quarter we achieved strong operating results, said Todd Becker, President and Chief Executive Officer. Our platform utilization was 93.9%, demonstrating our capabilities of maximizing our core operations and new technologies. Our fourth quarter outlook remains strong as margins across all of our products look favorable based on current market conditions.
Future Outlook
The company's outlook for the fourth quarter of 2023 remains strong based on solid production operating rates, industry fundamentals, and expanding Ultra-High Protein sales. Green Plains Inc (NASDAQ:GPRE) also completed successful 60% protein production runs with growing global customer interest for future sales.
Merger Agreement with Green Plains Partners LP
On September 16, 2023, Green Plains and Green Plains Partners LP entered into a definitive merger agreement. Under the merger agreement, each outstanding common unit of Green Plains Partners that Green Plains and its affiliates do not already own will be converted into the right to receive 0.405 shares of Green Plains common stock and $2.00 in cash, plus an amount of cash equal to unpaid distributions from the end of the last quarter for which a quarterly distribution was made to the closing date.
Liquidity and Capital Resources
As of September 30, 2023, Green Plains had $366.2 million in total cash and cash equivalents, and restricted cash, and $200.0 million available under a committed revolving credit facility. Total debt outstanding at September 30, 2023 was $653.6 million.
Explore the complete 8-K earnings release (here) from Green Plains Inc for further details.
This article first appeared on GuruFocus.
