Cash increased to $16.8 million and the current ratio is 3.3:1
Third party ethanol sales were very strong, internal ethanol production was close to maximum capacity and co-product prices (WDG) were up sequentially.
In the fourth quarter we expect a modest seasonal slowdown but the third quarter strength in third party sales should spill over into the fourth quarter.
The mandated level of ethanol in gasoline moves from 12.6 billion gallons in 2011 to 13.2 billion gallons in 2012 (and 15 billion gallons in 2015)
Given the increases in ethanol levels in gasoline in 2011, and assuming continued positive gross margins the Madero plant, may be re-opened. We are assuming very modest production from this plant in the first quarter 2012 then production at the full capacity of 10 million gallons per quarter for the rest of the year.
The price of ethanol is more closely related to the price of gasoline than to the price of corn. At this point in time corn has peaked and the price has dropped. This has a slight but positive effect on gross margins.
California is the largest gasoline consuming state in the Union and there is a shortage of ethanol production in California. Pacific Ethanol has a very strong presence in the Western United States and markets 100% of the ethanol produced in California. In the past about one third of the company's sales are from internal production, one third under contract and one third from other sources. This is moving to a smaller proportion of internal and contract ethanol, even when the Madera plant is re-opened. We would expect Pacific Ethanol to announce more contracts in 2012 as the supply of ethanol tightens in California.
Pacific Ethanol has announced an agreement with ZeaChem to maintain the plant, produce and sell the ethanol produced from cellulosic material (no corn) feedstock. This is a small plant with capacity of 250,000 gallons a year and it is situated very close the Boardman, OR, plant.
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Pacific Ethanol and BioFuel Energy Set for Bright Futures
Pacific Ethanol (NASDAQ:PEIX)
Intraday Stock Chart
Today : Thursday 3 November 2011
Ethanol stocks have gone on a significant run in recent weeks. Contrary to popular wisdom, ethanol prices are more closely tied to the price of gasoline than to corn prices. With gas prices remaining high, and corn prices dropping in recent weeks, ethanol producers are showing strong margins. The Paragon Report examines the outlook for companies in the Ethanol Industry and provides investment research on Pacific Ethanol Corporation (NASDAQ: PEIX) & BioFuel Energy Corporation (NASDAQ: BIOF). Access to the full company reports can be found at:
Reuters recently reported that strong margins have added incentives for greater production, and margins are seen remaining healthy until the end of this year at least, though they are expected to narrow after the fourth quarter.
The mandated level of ethanol in gasoline moves from 12.6 billion gallons in 2011 to 13.2 billion gallons in 2012, growing up to 15 billion gallons in 2015. Ethanol can be used in much higher proportions, with up to 85 percent ethanol in special factory-produced vehicles. A growing number of these vehicles are being produced by auto manufacturers to test market demand for such a vehicle.
The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Ethanol industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.
The ethanol market is not without detractors. This is becoming clearer as Republican 2012 Presidential candidates outline their platforms. Four out of the five candidates who attended a manufacturing forum Tuesday in Pella Iowa say it is time to phase out subsidies for the fuel, saying the federal government should not be in the business of supporting one energy source over another. Michele Bachmann, Rick Santorum and Ron Paul also said they oppose ethanol subsidies. Only Newt Gingrich backed federal support for ethanol, noting that he voted for the subsidies in Congress in 1984.
The favorable US governmental policies that promote corn being used by US-based ethanol plants have sent corn demand surging, leading many analysts to argue that ethanol is partially responsible for the higher corn prices.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer
Signaler un abus
03 novembre 2011•22:06
Pacific Ethanol, Inc. Provides Update on Its Senior Convertible Notes
Pacific Ethanol (NASDAQ:PEIX)
Intraday Stock Chart
Today : Thursday 3 November 2011
Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, provided an update on its senior convertible notes.
The aggregate unpaid principal balance of the notes, originally $35.0 million as of October 6, 2010, has declined to $820,000 as of November 1, 2011. The principal balance was $8.4 million as of October 3, 2011, the date of the Company's last update. To date, a total of $33.0 million in principal has been converted into 58.4 million common shares, at an average conversion price of $0.56 per share.
"We are pleased to report that we have retired nearly all the convertible debt six months ahead of schedule," said the company's president and CEO, Neil Koehler, "The proceeds raised under these notes allowed us to secure our ownership interest in the Pacific Ethanol plants and significantly improve our cash position. Through retiring the convertible notes and reporting positive financial results for the third quarter, we are building shareholder value and positioning the company for continued growth and profitability."
As previously announced, Pacific Ethanol elected to make its November 1, 2011 installment payment in cash. As a result of voluntary conversions by certain note holders, the November payment was reduced to less than $10,000. In addition, on November 1, 2011, Pacific Ethanol elected to pay its December 1, 2011 installment, also in an amount less than $10,000, in cash. Further, the company intends to pay any remaining amounts, subject to voluntary conversions by the note holders, in cash. As of November 1, 2011, Pacific Ethanol had approximately 75.6 million common shares outstanding.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading marketer and producer of low-carbon renewable fuels in the Western United States. Pacific Ethanol also sells co-products, including wet distillers grain (WDG), a nutritional animal feed. Serving integrated oil companies and gasoline marketers who blend ethanol into gasoline, Pacific Ethanol provides transportation, storage and delivery of ethanol through third-party service providers in the Western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho and Washington. Pacific Ethanol has a 20% ownership interest in New PE Holdco LLC, the owner of four ethanol production facilities. Pacific Ethanol operates and manages the four ethanol production facilities, which have a combined annual production capacity of 200 million gallons. The facilities in operation are located in Boardman, Oregon, Burley, Idaho and Stockton, California, and one idled facility is located in Madera, California. The facilities are near their respective fuel and feed customers, offering significant timing, transportation cost and logistical advantages. Pacific Ethanol's subsidiary, Kinergy Marketing LLC, markets ethanol from Pacific Ethanol's managed plants and from other third-party production facilities, and another subsidiary, Pacific Ag. Products, LLC, markets WDG. For more information please visit www.pacificethanol.net.
The Pacific Ethanol, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5940
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release including, without limitation, the ability of Pacific Ethanol to continue as the leading marketer and producer of low-carbon renewable fuels in the Western United States are forward-looking statements and considerations that involve a number of risks and uncertainties. The actual future results of Pacific Ethanol could differ from those statements. Pacific Ethanol refers you to the "Risk Factors" section contained in its most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2011 and in its most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 11, 2011.
Signaler un abus
03 novembre 2011•22:10
ces derniers temps.
J'aurais du renforcer plus bas.
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