Rex American Resources Inc. released fiscal fourth quarter results on March 23, reporting a significant increase in sales revenue for the three-month period, but cautioning that high corn prices and other factors are likely to negatively impact 2022 results.

Douglas Bruggeman, chief financial officer of Rex, said sales for the fiscal fourth quarter, the three-month period ending Jan. 31, were up 68 percent due to higher pricing for ethanol, distillers grains and corn oil. The company sold 69.9 million gallons of ethanol during the period, up from 67.7 million gallons during the same quarter of the previous year.

Stuart Rose, executive chairman of Rex, said the company had a “very good” fiscal 2021 but said Rex is projecting a possible loss for the fiscal first quarter of 2022 due, in part, to higher corn prices. He also cited logistical issues, inflation and labor shortages as other factors negatively impacting the company’s business.

High ethanol stocks are among those factors, according to Zafar Rizvi, CEO of Rex. He cautioned that these factors may persist beyond the first quarter, adversely impacting production and net income.

Rizvi also discussed the ongoing carbon capture and sequestration (CCS) project that Gibson City, Illinois-based One Earth Energy is developing with the University of Illinois. He stressed that the project is still in a very preliminary stage but noted a first test well has already been drilled. Testing at that well is expected to continue over the next several months in support of the Class 6 permit needed to develop a commercial CCS project. In addition, Rizvi said that 3D seismic testing was completed in February, resulting in the collection of 160 million data points that are now being analyzed. He also noted that a FEED study has been completed and the company plans to start a bidding process once engineering is complete.

Rex reported net sales and revenue of $212 million for the fiscal fourth quarter, up from $126 million during the same period of 2020. Net income attributable to Rex shareholders was $21.4 million, compared to $3.5 million. Basic and diluted net income per share attributable to Rex common shareholders was $3.61 compared to a net income per share of 59 cents during the fourth quarter of 2020.

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.