Rex American Resources Corp. released fiscal first quarter financial results on May 26, reporting a profitable three-month period for its ethanol segment. Ethanol production and sales volumes were up significantly when compared to the same period of 2020.
During an earnings call, Doug Bruggeman, chief financial officer at Rex, said sales for the ethanol and byproducts segment were up 97 percent, due primarily to higher production levels. Ethanol sales for the quarter, which ended April 30, were based on 70 million gallons of production, up from 48.3 million during the same period of last year. The company benefited from a significant increase in sales prices for ethanol and byproducts, Bruggeman added.
The ethanol and byproducts segment reported a gross profit of $19.5 million, versus a gross loss of $8.2 million reported for the same period of 2020. Gross margin benefited from the increased volume and selling prices, Bruggeman said, which were partially offset by higher corn prices.
Zafar Rizvi, CEO of Rex, provided a brief update of the carbon capture and storage (CCS) project underway at the company&rsquo;s One Earth Energy facility in Illinois, which is being developed in conjunction with the University of Illinois. Rizvi said the university has completed its pre-drilling site assessment. Seismic surveys are expected to begin in early June, with planning, site selection and design work for the project underway. Drilling is expected to begin on a test well in early September. Modeling completed using the test well will determine how much carbon dioxide can be injected at that location and other factors related to the project.
Stuart Rose, executive chairman of Rex, said the company continues to look for acquisition opportunities, but said nothing is imminent at this time.
Overall, Rex reported net income attributable to Rex shareholders of $7.8 million, compared to a net loss of $7.6 million reported for the same period of last year. Basic and diluted net income per share attributable to Rex common shareholders was $1.30, compared to a net loss per share of $1.21 reported for the first quarter of 2020.
Rex currently holds ownership interest in six ethanol plants, including 75.5 percent ownership interest in Gibson City, Illinois-based One Earth Energy LLC, 99.5 percent ownership interest in Marion, South Dakota-based NuGen Energy LLC, 10.3 percent ownership interest in West Burlington, Iowa-based Big River Resources West Burlington LLC, 10.3 percent ownership interest in Galva, Illinois-based Big River Resources Galva LLC, 5.7 percent ownership interest in Dyersville, Iowa-based Big River United Energy LLC, and 10.3 percent ownership interest in Boyceville, Wisconsin-based Big River Resources Boyceville LLC.
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Rex American Resources Corp. released fiscal first quarter financial results on May 26, reporting a profitable three-month period for its ethanol segment. Ethanol production and sales volumes were up significantly when compared to Q1 2020.

Rex reports profitable Q1 for ethanol segment

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