Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And our people are just terrific and they get all the credit for this quarter |
| Stuart Rose We believe strongly we have the best commodity trading team, not just the best plants, but I really believe we have the best commodity trading team led by Zafar in the ethanol business |
| We reported a $30 million increase in third quarter gross profit to $39.3 million this year versus $9.3 million in the prior year as we benefited from lower corn and natural gas pricing over the prior year third quarter |
| But I can -- as I mentioned, the fourth quarter, certainly, we believe that it will be -- will be much better than last year's same fourth quarter |
| They're the best people -- we feel we have the best people in the industry |
| So we're, again, going to show, we believe that execution is way more important than anything else, and we feel we're better at that than anyone else |
| Going forward, the business has continued to be strong, and we expect our fourth quarter to be significantly better than last year's corresponding quarter |
| So we have done -- we have been -- they've done good for us, I believe |
| We're earning interest on that, which should be significantly better or we hope it to be significantly better than last year |
| As I said earlier, we feel we know we have good plans, we know we have good locations, but the most important thing we have is good people |
| We are very pleased to report these record net income and earnings per share quarterly results |
| We have seen some decline in the cash margin in the fourth quarter compared to the third quarter, but we believe we still be able to achieve significantly better results in comparison to last year's fourth quarter |
| We have also seen natural gas price drop considerably, which has a positive impact on our financial results |
| but we better execute than our competitors and our people are the real reason for that |
| Again, as I said in my call, better executing than everyone else |
| As Stuart and Doug previously mentioned, our team successfully capitalized the opportunity in the commodity market and were able to achieve the best result in the history of the company |
| Considering all these factors, we still believe our fourth quarter is expected to produce much better results compared to the same quarter last year, as I mentioned previously |
| As I mentioned in our previous calls, we believe our carbon capture and sequestration project will further advance our sustainability goals and have a financial impact that will improve the company's performance for our shareholders |
| We are pleased about the big milestone we have reached so far and hope different government agency will complete their approval early next year |
| And again, if he does that, like -- if they do that like they've done ethanol business, we're in really good shape |
| If we successfully achieve our goal, we will be prepared to provide low carbon ethanol and byproducts with a social impact of reducing carbon in the atmosphere and a financial impact that improved the company's performance for our shareholders |
| In summary, we are pleased to announce the most profitable quarter in our history and we believe our fourth quarter is expected to be produce much better result compared to the same period last year |
| We are pleased that corn yields in Marion, South Dakota, this year is estimated at 152-bushels per acre compared to 132 bushels last year |
| Zafar and his team have proven quarter after quarter after quarter that they know the commodity business and a really good at it |
| And thanks for another excellent quarter, and congratulations on kicking everybody's butt |
| Stuart? Stuart Rose In conclusion, we completed the best quarter in our 39-year history as a public company |
| We had income of $4.7 million from our unconsolidated equity investment in this year's third quarter versus $661,000 in the prior year, primarily reflecting the improved industry operating conditions for this time period |
| It's just a terrific job and they deserve it |
| Unfortunately or fortunately, whatever you want to say, most plants could really -- are doing really, really well and the price has gone very, very much up on those plants |
| We don't want people putting that in their numbers, but that's what we're working so hard to get to and if we even get to half of that, that's all increase in earnings per share |
| Statement |
|---|
| Looking ahead, the drop in the ethanol and DDG export could negatively affect future results if this continue throughout the next year |
| According to the EIA and November 29 report, ethanol stock and production dropped during the week |
| Other people with all their futures contracts and the big floors of commodity traders and everything, they have drastically underperformed what Zafar and his team have done |
| David Locke So my first question is like the industry overall has been beset by a ton of operational problems |
| Do you guys need any imminent domain rulings to make that happen? And it seems like there have been some problems in Iowa recently with that |
| Once again, we could not achieve this milestone without the hard work and dedication of our colleagues |
| DDG export through September 2023 was approximately 8 million metric tons compared to approximately 8.5 million metric tons, a decrease of approximately 428,000 metric tons compared to the same period 2022 |
| And so we may have some difficulties |
| So that will be a major impact, as I mentioned that in my previous prepared remarks that we have seen the drop in natural gas pricing |
| How do you guys feel generally about the broad supply/demand environment for ethanol right now? I mean we've been -- we've been oversupplied for the better part of 1.5 decades, it feels like, although we've had sort of just consistently decent margins all year this year with some really high ones over the summer and early fall |
| So I think that, as I mentioned previously in the South Dakota area, certainly, we have seen some minus bases |
| In other updates, 2 other carbon pipeline companies recently withdrew their pipeline application |
| We have seen this in Indianapolis and some other part where it was not as good production as it compared to last year is plus basis |
| Chris Sakai And what about the price of natural gas as we head into the winter? Zafar Rizvi The natural gas price has considerably dropped as I mentioned that we have seen that is less than $5 for January, February |
| the last few months, explosions, fires, et cetera |
| As such, actual results may vary materially from expectations |
| So I really cannot predict what happened next year |
| And we have seen some bases in overall in Illinois has gone up a little bit |
| And as Stuart mentioned, there's a couple of plants which happened I think -- I think if you bring -- there's 1 plant in happen in South Dakota, that was about only 70 million-gallon plants that were shut down for a while |
| Stuart Rose I was going to say, in my opinion, it's a commodity and you never -- what will happen is there'll be one way or another |
Please consider a small donation if you think this website provides you with relevant information