Rex reports profitable Q4
March 26, 2021
BY Erin Voegele
Rex American Resources released fourth quarter results on March 25, reporting that the company’s ethanol operations are currently profitable. Rex officials also discussed the potential for carbon capture and sequestration (CSS) and said the company continues to consider acquisitions.
Stuart Rose, executive chairman of Rex, opened the fourth quarter earnings call confirming ethanol is currently profitable. Crush spreads, however, remain challenging, he added. As states begin to lift COVID-19-realted restrictions, Rose said Rex expects demand for transportation fuel to increase.
Rose also noted that Rex continues to explore investing in CCS and acquiring new ethanol plants.
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Zafar Rizvi, CEO of Rex, discussed the CCS project the company’s One Earth Energy facility has been working on in conjunction with the University of Illinois. The university is currently expected to start drilling a test well in September, he said, but noted the project is still in a very preliminary stage.
Rex reported net sales and revenue of $126 million for the fourth fiscal quarter, which ended Jan. 31, up from $120.9 reported for the same period of the previous financial year. Gross profit for the company’s ethanol and byproducts segment increased to $8.3 million, up from $8.1 million.
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Net income attributable to Rex shareholders for the fourth quarter was $3.5 million, compared to net income of $4.4 million during the fourth quarter of the previous year. Basic and diluted net income per share attributable to Rex common shareholders was 59 cents, compared to net income per share of 70 cents for the fourth quarter of 2019.
Rex currently holds ownership interest in six ethanol plants, including 75.4 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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