ADM reports strong Q3 despite reduced ethanol earnings

October 25, 2022

BY Erin Voegele

Archer Daniels Midland Co. released third quarter financial results on Oct. 25, reporting significantly higher results for its Carbohydrate Solutions business segment despite reduced ethanol margins.

The Carbohydrate Solutions segment, which includes both the Starches and Sweeteners and Vantage Corn Processors subsegments, reported $309 million in operating profit for the three-month period, up from $213 million reported for the third quarter of 2021.

Advertisement

ADM’s Starches and Sweeteners subsegment includes ethanol production from the company’s wet mills. The subsegment reported $327 million in operating profit for the third quarter, up from $178 million last year. ADM said steady global demand for sweeteners and starches contributed to the improved results, along with continued robust demand for corn oil.

Vantage Corn Processors, which includes ADM’s dry mill facilities, reported a $18 million loss for the third quarter, compared to $35 million in operating profit reported for the same period of 2021. The company said ethanol margins during the three-month period were pressured by lower domestic demand and elevated corn costs. Third quarter 2021 results also included contributions from the now-sold facility in Peoria, Illinois.

Advertisement

Moving into the fourth quarter, ADM Chief Financial Officer Vikram Luthar said the company expects results for the Carbohydrate Solutions business segment to be down significantly when compared to last year. While demand for sweeteners and starches is expected to remain healthy, ethanol margins are expected to be substantially lower than last year’s historic highs, he said.

Overall, ADM reported $1.56 billion in segment operating profit for the third quarter, up from $1 billion during the same period of last year. Earnings per share were at $1.83, up from 93 cents during the third quarter of 2021.

 

Related Stories

Neste and FedEx, the world’s largest express cargo airline, have agreed on the supply of 8,800 metric tons (more than 3 million gallons) of blended Neste MY Sustainable Aviation Fuel to FedEx at Los Angeles International Airport (LAX).

Read More

The U.S. EPA on May 14 delivered two RFS rulemakings to the White House OMB, beginning the interagency review process. One rule focuses on RFS RVOs and the other focuses on a partial waiver of the 2024 cellulosic RVO.

Read More

The U.S. EPA on May 15 released data showing nearly 1.79 billion RINs were generated under the RFS in April, down from 2.09 million generated during the same month of last year. Total RIN generation for the first four months of 2025 was 7.12 billion.

Read More

Calumet Inc. on May 9 announced sustainable aviation fuel (SAF) capacity at its Montana Renewables biorefinery is expected to reach 120 MMgy to 150 MMgy sooner than previously reported for a fraction of the originally expected cost.

Read More

Tidewater Renewables on May 8 announced that its 3,000-barrel-per-day renewable diesel plant in Prince George, British Columbia, operated at 75% capacity during the first quarter, up from 71% during the same period of last year.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement