Rex American Resources Corp. on May 25 released financial results for its fiscal first quarter of 2022, the three months ended April 30. Despite a challenging operational environment, the company was profitable. Rex also disclosed it received COVID-19 relief funds from the USDA in May and is progressing with the development of a carbon capture and sequestration (CCS) project.

During an earnings call, Rex CEO Zafar Rizvi said the operating environment at the beginning of the first quarter was very challenging but said the company has seen some improvements moving into the second quarter. Continuing challenges include logistics issues and the high prices of corn and natural gas. Despite those challenges, Rizvi said Rex currently expects to report a profitable second quarter.

According to Rizvi, Rex on May 23 received $7.8 million in COVID-19 relief from the USDA. That payment was awarded under the USDA’s $700 million Biofuel Producer Program.

Rizvi also discussed the ongoing CCS project Rex is working to develop at the One Earth Energy ethanol plant in Illinois. That project is being developed in partnership with the University of Illinois. According to Rizvi, the first test well has been drilled for that project and geological models predicting the movement of carbon dioxide injection into the subsurface are making progress. He also noted that a water injection test is being completed this week. Data gathered as part of those tests will help the company complete its Class VI permit application for the CCS project. That Cass VI permit is expected to be filed this summer.

Rex currently holds ownership interest in six ethanol plants, including 75.4 percent ownership interest in Gibson City, Illinois-based One Earth Energy LLC and a 99.5 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC. The company also holds 10.3 percent ownership interest in Rig River Resources LLC, a company that owns four ethanol plants, including West Burlington, Iowa-based Big River Resources West Burlington LLC; Galva, Illinois-based Big River Resources Galva LLC; Dyersville, Iowa-based Big River United Energy LLC; and Boyceville, Wisconsin-based Big River Resources Boyceville LLC.

Rex reported net sales and revenue of $194.2 million for the fiscal first quarter of 2022, compared to $164 million reported for the same period of last year. Gross profit for e company’s continuing operations was $11.9 million, down from $19.5million. Net income attributable to Rex shareholder was $5.2 million, down from $7.8 million. Basic and diluted net income per share attributable to Rex common shareholders was 87 cents, compared to $1.30 reported for the first fiscal quarter of 2021.