More financial news from the non-fossil fuel world. US BioEnergy Corporation announced on Tuesday a net income of $11.1 million, or $0.15 per share, for the quarter ended September 30, 2007, compared to $8.3 million, or $0.12 per share, for the second quarter of 2007. Net income for the quarter ended September 30, 2007 included a one-time impairment charge of $2.5 million, related to the company’s third party marketing and services businesses. EBITDA was $24.2 million for the quarter ended September 30, 2007, compared to $21.8 million for the second quarter of 2007.
For the nine months ended September 30, 2007, the company reported net income of $24.6 million, or $0.35 per share, and EBITDA of $64.2 million.
“We are very pleased to report another quarter of strong production, improving operating efficiencies and increased earnings,” said Gordon Ommen, US BioEnergy’s CEO. “It was the first full quarter of production at our Ord, Nebraska plant and we now have four plants in operation and four additional plants under construction. Additionally, we successfully closed the acquisition of US Bio Marion, LLC (formerly Millennium Ethanol, LLC) during the third quarter, which positions us to bring our total production capacity to 750 million gallons per year (mgy) by the end of 2008.”
Gross margins for the third quarter of 2007 improved 50% to $28.8 compared to the second quarter of 2007.
During the third quarter of 2007, the company sold 73.2 million gallons of ethanol at an average selling price of $1.76 per gallon, compared with 67.1 million gallons of ethanol at an average selling price of $1.91 per gallon for the second quarter of 2007.
Aside from the increase in volumes, it is interesting to see the role that hedging the price of corn plays in the firm’s accounts.