Green Plains (GPRE) Q4 2023 earnings summary

Executive summary

• Q4 net income attributable was $7.2 million, or $0.12 per diluted share, versus a $38.6 million loss; EBITDA was $44.7 million and adjusted EBITDA was $45.2 million.

• Consolidated ethanol crush margin rose to $49.7 million from $7.9 million, with platform utilization at 95%.

Financial highlights

• Q4 revenue was $712.4 million versus $914.0 million; lower average selling prices and volumes across ethanol, distillers grains and renewable corn oil contributed to the decline.

• Operating income was $16.3 million versus an operating loss of $23.0 million; net income was $11.9 million versus a net loss of $32.3 million.

• FY revenue was $3.30 billion versus $3.66 billion; net loss attributable was $76.3 million versus $127.2 million, and diluted EPS was $(1.59) versus $(2.29).

• FY EBITDA was $54.0 million versus $26.7 million; adjusted EBITDA was $45.5 million versus $(0.8) million.

Outlook and guidance

• Clean Sugar Technology at Shenandoah was expected to begin commissioning in Q1 2024, with product deliveries anticipated in Q2; multi-year dextrose corn syrup agreements were expected to conclude in Q1.

• Commercial 60% protein production runs were completed; negotiations targeted 2024 and 2025 volumes for aquaculture and pet food markets, and the joint venture facility was commissioning.

• Carbon capture projects at three Nebraska facilities were anticipated to operate in 2025; a separate project involving four Iowa and Minnesota facilities was anticipated in 2026.

• A facility combining MSC and Shell Fiber Conversion Technology was expected to complete construction during Q1 2024.