Green Plains Reports Fourth Quarter and Full Year 2022 Financial Results
OMAHA, Neb. , February 08 /Businesswire/ - Green Plains Inc. (NASDAQ:GPRE) today announced financial results for the fourth quarter and full year 2022. Net loss attributable to the company was $38.6 million, or $(0.66) per basic and diluted share for the fourth quarter compared to net loss attributable to the company of $9.6 million, or $(0.18) per basic and diluted share, for the same period in 2021. Revenues for the quarter were $914.0 million compared with $802.3 million for the same period in the prior year. EBITDA was $5.7 million for the quarter compared to $30.3 million for the same period in 2021.
“Execution on our transformation plan hit an important milestone in recent weeks with the completion of our fifth MSC system,” said Todd Becker, President and Chief Executive Officer. “These deployments of MSC are an important step toward what we believe will be significant earnings contributions in future quarters from this technology. During the fourth quarter, we continued to experience a challenging ethanol margin environment that was impacted significantly late in the quarter by both rail delays and weather-related shutdowns, coupled with continued seasonally high corn basis. Utilization remained strong at 93% during the quarter and despite the challenging macro operating environment, we achieved a positive consolidated crush margin of $0.03 per gallon. We have begun to see the positive impact from Ultra-High Protein production and expanded oil yields, as they were strong contributors in a weak ethanol margin environment.”
“Our strong protein ingredient sales program continues to accelerate,” added Becker. “Our customer base continues to grow, and when combined with anticipated recurring customer sales, we have approximately 75% of our platform capacity already spoken for and have sold out most of the first half of the year. With five facilities now operational, we are able to serve our customers from multiple locations, demonstrating the unique capabilities of our platform. With our production volumes and the redundancy of our platform increasing, we are beginning to realize the opportunity to future proof our customers’ animal feed diets to meet increasing consumer demand for healthier, low-carbon protein products. We have seen robust demand after demonstrating our ability to service customers with higher volumes. With our expanded reach, our products continue to be shipped to aqua, pet, poultry, swine, and dairy customers in North America, South America and Asia Pacific.”
Construction is progressing at the first commercial clean sugar facility in Shenandoah, Iowa, deploying Fluid Quip Technologies’ CST™ and laying the groundwork for a growing biocampus.
“We believe producing low-carbon dextrose to support the emerging bio-economy, in addition to traditional food and chemical users, is a game changing opportunity to maximize our production platform and unlock significant value for our shareholders as we attempt to disrupt a century old industry,” said Becker. “Our CST system at Shenandoah is leading to substantive discussions with interested co-location partners and potential customers. We believe this opportunity is larger than all other value drivers and when combined with protein and oil, will help leave traditional ethanol volatility in the rear-view mirror.”
“As we begin 2023, we finally see the inflection points in our transformation,” concluded Becker. “The milestones achieved during 2022 leave us in firm position to continue executing on our vision to maximize value by expanding production of our protein ingredients and renewable corn oil, capturing the biogenic carbon dioxide, and converting a portion of starch into dextrose. All of these initiatives are on track and our confidence that we will achieve our 2024 and beyond transformation financial guidance outlined at the beginning of this journey continues to grow.”
Full Year Highlights:
- Plant modernization and upgrade programs completed, returning platform to full utilization rate capability
- Achieved 60% protein concentration, as fed, at a trial at Green Plains Wood River in the second quarter using Fluid Quip Technologies’ MSC™ system combined with biological solutions exclusive to Green Plains
- Broke ground on MSC™ at turnkey solution partner Tharaldson Ethanol in Casselton, North Dakota, anticipated to be operational in early 2024
- Commenced construction of first commercial deployment of Clean Sugar Technology™ at Green Plains Shenandoah, anticipated to be operational in late 2023
- Announced aquafeed partnership with Riverence to expand trout and salmon feed production in Idaho
- Expanded protein sales to customers in North America, South America and Asia Pacific across multiple species
Results of Operations
Green Plains ethanol production segment sold 225.2 million gallons of ethanol during the fourth quarter of 2022, compared with 200.5 million gallons for the same period in 2021. The consolidated ethanol crush margin was $7.9 million, or $0.03 per gallon, for the fourth quarter of 2022, compared with $41.0 million, or $0.20 per gallon, for the same period in 2021. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, which includes renewable corn oil and Ultra-High Protein, plus intercompany storage, transportation, nonrecurring decommissioning costs, nonethanol operating activities and other fees, net of related expenses.
Consolidated revenues increased $111.7 million for the three months ended December 31, 2022, compared with the same period in 2021, primarily due to higher average selling prices and higher volumes sold for ethanol, distillers grains and renewable corn oil.
Net loss increased $28.4 million and EBITDA decreased $24.5 million for the three months ended December 31, 2022, compared with the same period the prior year, primarily due to lower ethanol crush margins. Interest expense decreased $0.5 million for the three months ended December 31, 2022 compared with the same period in 2021. Income tax expense was $4.9 million for the three months ended December 31, 2022 compared with income tax expense of $4.8 million for the same period in 2021.
Segment Information
The company reports the financial and operating performance for the following three operating segments: (1) ethanol production, which includes the production of ethanol, distillers grains, Ultra-High Protein and renewable corn oil, (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, renewable corn oil, natural gas and other commodities and (3) partnership, which includes fuel storage and transportation services. Intercompany fees charged to the ethanol production segment for storage and logistics services, grain procurement and product sales are included in the partnership and agribusiness and energy services segments and eliminated upon consolidation. Third-party costs of grain consumed and revenues from product sales are reported directly in the ethanol production segment.
GREEN PLAINS INC. |
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SEGMENT OPERATIONS |
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(unaudited, in thousands) |
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Three Months Ended
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Twelve Months Ended
|
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|
|
2022 |
|
|
|
2021 |
|
|
% Var. |
|
|
2022 |
|
|
|
2021 |
|
|
% Var. |
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Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ethanol production |
$ |
760,458 |
|
|
$ |
586,024 |
|
|
29.8 |
% |
|
$ |
3,070,192 |
|
|
$ |
2,153,368 |
|
|
42.6 |
% |
Agribusiness and energy services |
|
159,582 |
|
|
|
221,279 |
|
|
(27.9 |
) |
|
|
615,615 |
|
|
|
691,484 |
|
|
(11.0 |
) |
Partnership |
|
20,947 |
|
|
|
19,094 |
|
|
9.7 |
|
|
|
79,767 |
|
|
|
78,452 |
|
|
1.7 |
|
Intersegment eliminations |
|
(26,944 |
) |
|
|
(24,078 |
) |
|
11.9 |
|
|
|
(102,725 |
) |
|
|
(96,136 |
) |
|
6.9 |
|
|
$ |
914,043 |
|
|
$ |
802,319 |
|
|
13.9 |
% |
|
$ |
3,662,849 |
|
|
$ |
2,827,168 |
|
|
29.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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Gross margin: |
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|
|
|
|
|
|
|
|
|
|
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Ethanol production |
$ |
2,316 |
|
|
$ |
29,776 |
|
|
(92.2 |
)% |
|
$ |
1,826 |
|
|
$ |
90,085 |
|
|
(98.0 |
)% |
Agribusiness and energy services |
|
14,649 |
|
|
|
4,586 |
|
|
219.4 |
|
|
|
52,665 |
|
|
|
34,109 |
|
|
54.4 |
|
Partnership |
|
20,947 |
|
|
|
19,094 |
|
|
9.7 |
|
|
|
79,767 |
|
|
|
78,452 |
|
|
1.7 |
|
Intersegment eliminations |
|
1,800 |
|
|
|
2,574 |
|
|
(30.1 |
) |
|
|
3,580 |
|
|
|
(587 |
) |
|
* |
|
|
$ |
39,712 |
|
|
$ |
56,030 |
|
|
(29.1 |
)% |
|
$ |
137,838 |
|
|
$ |
202,059 |
|
|
(31.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
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Depreciation and amortization: |
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|
|
|
|
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|
|
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|
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Ethanol production |
$ |
22,444 |
|
|
$ |
20,314 |
|
|
10.5 |
% |
|
$ |
81,545 |
|
|
$ |
82,969 |
|
|
(1.7 |
)% |
Agribusiness and energy services |
|
1,252 |
|
|
|
463 |
|
|
170.4 |
|
|
|
3,466 |
|
|
|
2,535 |
|
|
36.7 |
|
Partnership |
|
1,178 |
|
|
|
966 |
|
|
21.9 |
|
|
|
4,093 |
|
|
|
3,737 |
|
|
9.5 |
|
Corporate activities |
|
1,811 |
|
|
|
716 |
|
|
152.9 |
|
|
|
3,594 |
|
|
|
2,711 |
|
|
32.6 |
|
|
$ |
26,685 |
|
|
$ |
22,459 |
|
|
18.8 |
% |
|
$ |
92,698 |
|
|
$ |
91,952 |
|
|
0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
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Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
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Ethanol production (1) |
$ |
(29,991 |
) |
|
$ |
2,973 |
|
|
*% |
|
$ |
(117,764 |
) |
|
$ |
(27,996 |
) |
|
*% |
||
Agribusiness and energy services |
|
10,521 |
|
|
|
1,738 |
|
|
* |
|
|
36,415 |
|
|
|
17,458 |
|
|
108.6 |
|
|
Partnership |
|
11,793 |
|
|
|
11,468 |
|
|
2.8 |
|
|
|
47,699 |
|
|
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