Business & Real Estate

Sacramento's Pacific Ethanol reports quarterly, annual losses

Strong production levels were not enough to offset losses amassed by Sacramento’s Pacific Ethanol Inc. in last year’s fourth quarter and for all of 2017.

The producer/marketer of ethanol and other products said Wednesday that its net loss available to common stockholders in last year’s fourth quarter totaled $13.6 million, or 32 cents per share, compared with net income of $12.6 million, or 30 cents a share, in the last quarter of 2016.

In calendar 2017, the company had a net loss of $36.2 million, or 85 cents per share, compared with net income available to common stockholders of $148,000 in 2016.

PEI said it set a fourth-quarter record for production gallons sold with 150.4 million, compared with 123.1 million at the close of 2016. In 2017, production gallons sold reached a record 527.2 million, up from 484.1 million the prior year.

Fourth-quarter sales totaled $395.3 million, compared with $441.7 million in 2016. The firm said the decrease “was primarily driven by a lower average ethanol sales price per gallon during the quarter.”

Annual sales were $1.63 billion, up slightly from $1.62 billion in 2016.

Neil Koehler, Pacific Ethanol’s president and CEO, noted that the company added to its ethanol-producing facilities and diversified its product mix, adding, "We remain focused on reducing costs at all of our facilities, optimizing the profitability of our marketing business, and maintaining a strong balance sheet."