Green Plains Q4 Net Income Up, Announces Strategic Review

OAKHURST, N.J. (DTN) -- Green Plains, Inc. reported net income attributable to the company of $7.2 million in the fourth quarter 2023 compared to a net loss of $38.6 million during the same quarter in 2022. Revenue for the quarter was $712.4 million compared with $914 million in the fourth quarter 2022.

Green Plains' ethanol production segment sold 215.7 million gallons of ethanol during the fourth quarter 2023, down from 225.2 million gallons for the same period in 2022.

The consolidated ethanol crush margin for the quarter was $49.7 million versus $7.9 million in the fourth quarter 2022. The consolidated crush margin is the ethanol production segment's operating income before depreciation and amortization, which includes renewable corn oil and ultra-high protein, plus intercompany storage, transportation, nonrecurring commissioning costs, nonethanol operating activities and other fees, net of related expenses.

Consolidated revenues decreased $201.7 million for the fourth quarter compared with the same period in 2022 primarily due to lower average selling prices and lower volumes sold on ethanol, distillers' grains, and renewable corn oil within the ethanol production segment. Revenues were also lower within the agribusiness and energy services segment as a result of decreased trading margins.

The company also announced the board of directors initiated a formal review process to evaluate its strategic alternatives. This comprehensive evaluation is intended to explore a broad range of opportunities for the company to enhance long-term shareholder value, including, but not limited to, acquisitions, divestitures, a merger or sale, partnerships, and financings.

According to the company, there is no deadline or definitive timetable for completion of the strategic review process, and there can be no assurances that the process will result in a transaction or any other outcome. Green Plains said it does not intend to make any further public comment regarding the review until the board has approved a specific action or otherwise determines additional disclosure is appropriate or required.

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