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| Statement |
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| But generally speaking, the crush is – the margin structure is better than what we have seen, but it has come off its highs |
| We believe our renewable corn oil platform is well positioned to take advantage of industry drivers towards advantaged feedstocks |
| These results begin to demonstrate our platform's capabilities and we believe we can and we will build on these record rates moving forward and start to see the real benefits in Q4 and beyond |
| We’re confident in the team and their ability to execute and it’s going to be a massive project that gives massive uplift to our industry overall |
| So, overall, on track, feel like this was a good quarter to get a win on the board, operations returning back to normal, but more to unlock there as well |
| As I just said, we have continued the same focus in the fourth quarter and have positioned ourselves, based on current market dynamics, to perform better across every product we produce |
| Maybe it takes a little bit longer, but overall really good execution so far |
| But generally, Canada continues to have a really strong low carbon fuel program, and we see good uptake from there |
| We achieved new record production levels for Ultra-High Protein in the third quarter and are on pace to set new highs in the fourth quarter |
| I’ll let you put in your own assumptions for ethanol margins, but we do believe fundamentals for the ethanol demand will remain strong for the foreseeable future, notwithstanding those normal ups and downs we see seasonally or from quarter-to-quarter |
| So feel very good about where we are from managing the capital side |
| Our liquidity improved in the third quarter, with our platform turning to free cash flow generation and also benefiting from the sale of our Atkinson plant above that |
| With strong margins on paper today, we expect even better free cash flow in the fourth quarter and to end the year stronger yet |
| So we’re really happy about that |
| I mean, we’ve seen overall better margin structures that have been available during Q4 |
| Those will be early econs, we outlined those during our earlier calls and discussions, but we really feel like we’re in a really great advantaged position especially for the early start up |
| Our ag and energy segment performed well, recording $12.2 million in EBITDA, which was about $5.6 million higher than the prior year |
| So between RINs, between LCFS and obviously the biodiesel tax credit and then moving into 45Z into the program into 2025, look, I mean, we think we’re in an advantaged position as an industry, not just Green Plains, but as an industry overall to make what we think is the second largest lowest carbon feedstock available |
| And in general, we’ve seen good uplift in terms of a new demand showing up for our products across all the species |
| The fundamentals at ethanol are even better in 4Q versus 3Q |
| Our financial strength is growing due to the strong execution of our platform and favorable industry fundamentals as we are well positioned to execute on the next steps of our transformation plan |
| So we’re pretty happy about that position |
| So relatively speaking from 12 months ago we continue to see uplift in all the species and continue to see growing volumes across our whole customer base, even with more volumes coming into the market |
| This morning we reported $52 million in EBITDA for the third quarter and an ethanol operating rate of 93.9% and very strong Ultra-High Protein production and sales |
| But we’re confident, at least from the standpoint of what we outlined and then those numbers that we previously outlined in Nebraska, advantaged Nebraska, and our assets there, it’s really advantage Green Plains shareholders, quite frankly, as we’re one of the biggest oil producers in the state |
| We’ve seen it a little bit below 9 million a day, which is good for ethanol we’ve seeing good export demand coming out of – for our products, about 100 million a day – or 100,000 barrels a day, sorry |
| Pricing was strong during Q3 and we sold most of our Q4 production at higher values than the current market, so we're happy about that |
| Yet we are also starting to achieve higher yields at almost all of our locations, with some consistently achieving over four pounds per bushel daily, and believe that over the long run, we could achieve improved yields across the entire platform |
| Our production was significantly higher than in the prior quarter and continues to grow |
| And we’re seeing really good interest in the product |
| Statement |
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| Green Plains consolidated revenues for the third quarter were $892.8 million, which was $62.2 million or approximately 6.5% lower than the same period a year ago |
| Now during the quarter, last quarter we saw weakness in the soybean meal basis, which affects the overall margin structure, but that has come roaring back as well as the overall price for protein has come roaring back as well |
| As we’ve seen the divergence between DDGS prices and soymeal, how has that impacted the HiPro pricing competitiveness? Todd Becker Well, I think what we saw is soymeal was weak, quite weak earlier in the quarter, and then you’ve seen it come roaring back |
| In addition, corn basis, which has been a significant headwind for the past two years, has moderated significantly on the forward look |
| In addition, as ethanol remains inverted slightly on the curb, and as we always try to reduce our inventories, this always is a slight negative when the market is and was set up like that against the end of the quarter |
| The lower revenue is attributable to lower prices for ethanol and dry distillers grains in Q3 of 2023 as compared to the third quarter of 2022 |
| The partnership had distributable cash flow of $10.7 million for the quarter, slightly lower than the $11.3 million for the same quarter of 2022 |
| It’s sitting down at the golf I think get pressured overall veg oil prices as well |
| So from that perspective and as we move to your second and third question on corn oil and LCFS, we have seen a drop |
| We noticed that there are some downtimes |
| That compares to a negative $35.6 million in the prior year period |
| We have recently seen veg oil prices drop |
| Whether it’s how much enzyme going to fermenter, whether it’s how much yeast is going to get applied and make sure it gets applied consistently every day at the same rate and what we want it to be applied at and less room for human error, which we learned, obviously was a bit of a headwind at times |
| We knew this would be a challenging process |
| The disadvantaged green gas in particular |
| That was the one thing we wanted to make sure that we locked in to at least get that locked away as we saw some downtimes in renewable diesel and maybe some delays in start-ups |
| We realized $48.5 million in consolidated crush for Q3 of 2023, compared to a negative $20.5 million in the prior year |
| We started to see volumes again starting out of the Middle East, but with what’s going on there, that may drop a little bit |
| Our assets have aged, I had to re – I had to hire a new operational team to address those issues, prior to the old operational team and management at the plants as well, so just harder to run these plants |
| While they certainly have seen some headwinds in terms of just overall permitting, we believe – strongly believe they’ll get through that and kind of get their route established |
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