Omaha-based Green Plains Renewable Energy , the nation’s fourth largest ethanol producer, reports strong third quarter results.
Green Plains’ revenues were 957 million dollars in the quarter that ended September 30th, up 93 percent from the same period in 2010. And net income was 12.4 million dollars, compared to 7.4 million for third quarter 2010.
Green Plains’ ethanol margin of 17 cents per gallon in the third quarter was down two cents from the same period last year, but a five cent improvement over the second quarter of this year.
During a conference call announcing those results, Green Plains CEO Todd Becker said the ethanol outlook remains bright despite the expected loss of the ethanol blenders’ tax credit.
One reason is the Renewable Fuels Standard, which will increase to 13.2 billion gallons in 2012. Becker says RFS2 provides a consistent base demand for ethanol and the industry must fight attempts to weaken it.
“Although we don’t believe any attempts to modify the RFS will be successful, we plan on defending it vigorously as it is the only significant piece of national energy policy that reduces our dependence on foreign oil today,” Becker says.
Other positives, Becker says, are strong export demand for U.S. ethanol, ethanol’s discount to gasoline and the potential growth of E15 sales in coming months.