Pacific Ethanol returns to profit

Market: Biofuels, Oil products
25/07/13

Houston, 25 July (Argus) — Pacific Ethanol returned to profit in the second quarter as the company rolled out corn oil technology at its Magic Valley plant in Burley, Indiana.

That facility began corn oil output and sales in June. Magic Valley has an operating capacity of 60mn USG/yr, or 3,900 b/d, of fuel ethanol. Its corn oil production is expected to add up to 7¢ of operating income per USG of fuel produced, the company said today.

During the third quarter, Pacific plans to add corn oil production to its Stockton, California, ethanol plant, which is equal in size to Magic Valley. Corn oil is used in the production of biodiesel. Its extraction has helped ethanol producers suffering in a tight-margin environment.

Pacific Ethanol booked a profit of $700,000 for the second quarter, up from a first quarter loss of $5.8mn and up from a $2.9mn loss in the same quarter of 2012.

Net sales for the quarter were at $233.8mn – higher by 14pc on a year-over-year basis thanks to increased ethanol prices.

Pacific operates four facilities in the western US with total capacity of 200mn USG/yr, or roughly 13,000 b/d.

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