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FULL YEAR: ETHANOL PRODUCER GREEN PLAINS' REVENUES DOWN 25%, EARNINGS DOWN 69%: $19 MILLION
Feb. 10, 2025
Source: Green Plains news release
OMAHA, Neb. -- Green Plains Inc. (NASDAQ:GPRE) ("Green Plains" or the "company") today announced financial results for the fourth quarter and full year 2024. Net loss attributable to the company was $54.9 million, or $(0.86) per diluted share for the fourth quarter compared to net income attributable to the company of $7.2 million, or $0.12 per diluted share, for the same period in 2023. Revenues for the quarter were $584.0 million compared with $712.4 million for the same period in the prior year. EBITDA was $(18.9) million for the quarter compared to $44.7 million for the same period in 2023.
"As we embark on 2025, we have launched a corporate reorganization and cost reduction initiative which will significantly reduce expenses on an ongoing basis," said Todd Becker, president and chief executive officer. "As part of this initiative we are targeting up to $50 million of savings per year and have implemented this week the first $30 million in improvements on an ongoing basis. Over the last several years we have strategically allocated capital in sales, marketing and innovation to develop and validate our ingredients and get them to market and we are moving from that phase to the commercialization phase of our strategy which includes the rationalization of expenses. These savings also include the idling of our Fairmont, Minnesota facility due to sustained localized margin pressure from the flooding that occurred in that region. Lastly, we have realigned our corporate and trade group SG&A functions, increasing our focus on the strategic initiatives that provide the most value to shareholders as we approach the start-up of our carbon strategy later this year."
"Our 'Advantage Nebraska' strategy remains firmly on track as we continue to reach milestones in permitting, construction and regulatory guidance," continued Becker. "Our 287-million-gallon Nebraska platform is positioned to be among the first in the nation to benefit from the 45Z Clean Fuel Production Credit, including the recently released and updated GREET model which was favorable to our assets and has the potential to be even better financially than originally expected. Our carbon capture operations in Nebraska are on pace to begin sequestering biogenic carbon dioxide in the second half of this year, and we believe this will be a consistent contributor to our valuation once the improvements from this asset base are reflected in our share price."
"We commenced operations at our clean sugar facility and continued to produce on-spec product in the fourth quarter and have sent samples to customers for validation," added Becker. "We have secured religious certifications and the Iowa Food Processer license which was the last major hurdle in our Food Safety System Certification (FSSC) audit, and we now have a clear path to certification in the first quarter. This opens the door for the inclusion of our low-CI dextrose in a wide range of food and ingredient applications. We will continue to address de-bottlenecking around wastewater capacity improvements over the next year as the plant runs at a reduced rate, produces specific campaigns for customers or idles for a period of time to maximize Shenandoah site earnings. We remain confident that this technology is a game changer globally and that the value of this technology will pay dividends in the long-term value creation for Green Plains and its shareholders."
"When combining the cost reduction initiatives with carbon earnings from Nebraska, those two alone could achieve a combined $180 million annualized contribution to our future earnings before taking into consideration ethanol, renewable corn oil (DCO) and our high protein initiative," said Becker. "While global and local protein markets remain oversupplied, our high protein production strategy and technology continues to contribute to our earnings. DCO is now clearly an advantaged feedstock as evidenced by the recent premium prices received verses soybean oil for use in renewable diesel production. Ethanol blending continues to inch higher and with several idled plants across the industry, including Fairmont, we expect to see ethanol physical stocks improve as we move through the year, which could lead to a more constructive environment. With carbon capture planned to commence in the second half of the year, we believe we are poised to fundamentally reshape the margin structure for Green Plains."
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