The Andersons Inc. released second quarter 2018 financial results on Aug. 7, reporting improved performance for the company’s ethanol group and the company as a whole. The ethanol group reported a 30 percent year-over-year increase in pretax income.

The ethanol group produced $6.1 million of pretax income attributable to the company in the second quarter, up nearly 30 percent when compared to the $4.7 million in pretax income reported for the same period of last year. The increase is primarily attributed to higher volume and better DDG values.

The Andersons’ four ethanol plants produced more than 121 million gallons during the second quarter, up 5 percent when compared to the same period of 2017. During the first six months of the year, the four plants produced 238 million gallons, up 11 percent when compared to the first half of last year. The increase is attributed, in part, to the Albion capacity that came online in March 2017.

During an investor call, Pat Bowe, CEO of the Andersons, said the company also continued to book strong increase in E85 sales, which are up more than 50 percent for the first half of the year.

Moving forward, Bowe said the ethanol group is continuing to succeed at driving plant production efficiency. “All four plants are running well,” he said. “The group has been able to lock in forward margins on almost half of third quarter production and small amounts for the following two quarters.”

He also briefly addressed development of the Element plant, which is being constructed with ICM Inc. in Kansas, noting the company is closely monitoring progress of the project. In addition, Bowe said the ethanol group “continues to evaluate projects that will improve plant efficiency and produce higher-value coproducts.”

Bowe called policy and trade issues the biggest unknowns in the ethanol industry, both domestically and internationally. “The year-round E15 waiver that we expect will be granted in the near-term will clearly help,” he said. “The impacts of the small refinery exemptions and RIN pricing have not yet had a significant impact on domestic blending due to high oil gasoline prices and low corn ethanol prices. But, like others in the industry, we are monitoring these conditions closely. Ethanol exports are running well ahead of last year’s record pace and have helped to keep us in good supply and demand balance. We’re optimistic that the group’s 2018 second half results will exceed those of 2017.”

Overall, The Andersons reported net income of $21.5 million, or 76 per diluted, share, on revenues of $911 million. This result is a significant improvement over the net loss attributable to the company of $26.7 million, or a loss of 94 cents per diluted share and net income attributable to the company of $15.3 million, or 54 cents per diluted share, on revenues of $994 million recorded for the same period of 2017. Earnings before interest, taxes, depreciation and amortization was $59.7 million, compared to $8.9 million of EBITDA and $50.9 million of adjusted EBITDA recorded in the second quarter of 2017.