The Andersons Inc. on Aug. 2 announced the company achieved record quarterly results during the second quarter of 2022. The company’s renewables segment, which includes its ethanol operations, generated record pretax income for the three-month period.

The renewables segment reported $45.9 million in pretax income for the second quarter, nearly double the $23.5 million reported for the same period of last year. The record pretax income includes $8.9 million in USDA COVID-19 relief funds and $24.4 million of positive mark-to-market impact, nearly $18 million of which are reversals of prior mark-to-market loss. This compared to positive mark-to-market impacts of $13.5 million in the second quarter of 2021. The renewables segment also ported record second quarter EBITDA of $85.7 million, up from $47.2 million last year.

During an earnings call held Aug. 3, The Andersons President and CEO Pat Bowe stressed that the company’s ethanol plants delivered strong results during the second quarter with good overall margins. “We once again had good results from third-party merchandizing of ethanol, low-CI renewable feedstocks, and other coproducts,” he said. “We remain positive on the outlook in renewables.”

Moving into the third quarter, Bowe said increased ethanol exports are favorably impacting overall margins. “We believe that our eastern ethanol plants are favorably located with expected lower corn costs through the fall, while western plants are facing much higher corn basis,” he said. “We continue to see strong demand and good values for coproducts, particularly distillers corn oil, which supports our overall margins. In addition, our renewable diesel feedstock merchandizing business is performing well and adding to our results.”

Bowe also discussed the recently announced agreement between The Andersons and Trucent Separation Technologies LLC to commercialize their distillers corn oil refinement technology. According to Bowe, the first module is being operated at The Andersons’ ethanol plant in Denison, Iowa. The module is achieving excellent results, he said, noting that The Andersons plans to install additional commercial modules at its other four ethanol plants. “We’ll also provide the technology, along with our marketing services, for corn oil to other ethanol producers,” Bowe added.

Overall, The Andersons reported net income attributable to the company of $80.5 million, or $2.34 per diluted share, compared to $41.4 million, or $1.23 per share, for the same quarter of last year. Adjusted EBITDA was $169.3 million, compared to $103 million.