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."