The following is a summary of the Green Plains Inc. (GPRE) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Green Plains reported consolidated revenues of $658.7 million, a 26% decrease compared to the previous year, primarily due to lower prices for ethanol, dry distillers grains, and renewable corn oil.

• EBITDA for the quarter stood at $83.3 million, incorporating a $30.7 million gain from the sale of the Birmingham Unit Train Terminal, while adjusted EBITDA was $53.3 million.

• Net income for the quarter was reported at $48.2 million or $0.69 per diluted share, compared to $22.3 million or $0.35 per diluted share in the previous year.

• Plant utilization rate was 97%, and capital expenditures for the quarter were $28 million.

Business Progress:

• The company executed upgrades at the Mount Vernon and Obion plants to increase efficiency and production capabilities, aiming to add approximately 40 million gallons of yearly production capacity combined.

• Progressed in the CST project for clean sugar, moving towards commercial production with the aim to disrupt the industry supply oligopoly and shipping low CI dextrose to customers.

• Green Plains continues to optimize its protein production capabilities, particularly focusing on ultra-high protein, and has ramped up its commercial efforts to secure new markets and customers both in the U.S. and internationally.

• Retired high-priced debt related to Green Plains Partners using proceeds from asset sales, improving financial flexibility.

Opportunities:

• Exports of ethanol are robust and expected to hit record numbers fueled by increased global blending mandates, with major contributions from Canada.

• The CST project and commercial production of clean sugar present potential revolutionary shifts in the sugar industry by providing a low-carbon dextrose, catering to a growing demand from consumer goods companies aiming to reduce their carbon footprint.

Risks:

• Acknowledged market volatility and rapid price compression in core commodities affecting margins, although it stabilized somewhat at the end of the quarter.

• Competitive pressures on protein product margins, despite maintaining strong demand, point towards future market adjustments needed to maintain profitability.

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