Latest news with #ethanol
Reuters
4 days ago
- Business
- Reuters
US ethanol output eases off record pace as summer travels heat up: Braun
NAPERVILLE, Illinois, May 30 (Reuters) - Record volumes of U.S. ethanol have been churned out since late last year, largely due to an uptick in exports and steady domestic demand. But output has slipped from those record levels over the last couple of weeks, coinciding with the ramp-up of the summer driving season. Luckily, large stockpiles of the corn-based fuel additive can offset some of the easing in output for now. However, both exports and domestic travel trends will need to be monitored in the coming weeks and months since this is when U.S. motor gasoline demand typically peaks. Over the four weeks ended May 23, U.S. ethanol production averaged roughly 1.026 million barrels per day. That is the best for the period in six years but behind the levels of six and seven years ago. Ethanol production typically dips at this time of year and output had been running at record rates from late last year through early spring, causing supplies to approach the 2020 records in March. U.S. ethanol stocks have since experienced a seasonal drawdown but remain at record levels for the date, with strong rates of both production and use somewhat offsetting each other. Huge exports have contributed to the elevated use levels in recent months. On the other hand, implied U.S. motor gasoline demand has not necessarily been impressive. Over the last couple of months, rates have been similar to the year-ago levels but well off the volumes before the pandemic, which was when demand for U.S. gasoline is thought is thought to have peaked. Increased fuel efficiency and post-pandemic changes in driving patterns – particularly remote working – have reduced U.S. gasoline consumption, an inherent threat to the U.S. ethanol industry. But the push for cleaner fuels abroad has been a bright spot. Although exports accounted for just 11% of U.S. ethanol produced in the 2023-24 marketing year, shipments reached record levels, supported by Canadian, British and Indian demand. Although exports have been the cornerstone of the U.S. ethanol industry this year, they have largely slowed below the year-ago levels in the last month or so, hitting an eight-week low last week. Exporters do have a cushion, as September-March shipments were easily a record for the period, up 26% on the year. However, this recent easing in ethanol exports could potentially be offset by a bump in U.S. gasoline demand this summer. As of April 2025, some 53% of Americans planned to take leisure vacations this summer versus 48% a year earlier, according to Deloitte's annual travel survey. This is despite a decline in their sense of financial well-being over the last year. The more frugal approach means that Americans plan to increasingly favor driving trips versus the previous few summers, including a higher frequency of trips as many are adding multiple short getaways. Gas prices are largely friendly for that effort, with the national average price for unleaded fuel sitting about 11% lower than a year ago. But consumer habits can abruptly shift whenever economic uncertainty spikes, and 2025 has been particularly rife with those risks. Karen Braun is a market analyst for Reuters. Views expressed above are her own.
Washington Post
6 days ago
- Business
- Washington Post
REX: Fiscal Q1 Earnings Snapshot
DAYTON, Ohio — DAYTON, Ohio — REX American Resources Corp. (REX) on Wednesday reported profit of $8.7 million in its fiscal first quarter. On a per-share basis, the Dayton, Ohio-based company said it had net income of 51 cents. The ethanol producer posted revenue of $158.3 million in the period. _____
BBC News
7 days ago
- Business
- BBC News
Saltend biofuel plant 'faces closure after US trade deal'
The UK's largest bioethanol plant will be forced to close unless the government acts, according to its April, Associated British Foods (ABF) said it was in talks with the government to help save its Vivergo Fuels site at Saltend, near Hull, after being forced to cut production levels due to low bioethanol Tuesday, Vivergo said the removal of a 19% tariff on US ethanol imports, which was part of the recent UK-US trade deal, was the "final blow".A government spokesperson said it was working closely with the industry to understand the impacts of the trade deal and it was open to discussions over potential support. Urgent action needed In a letter to farmers, Vivergo managing director Ben Hackett said: "Unfortunately, if there is no government intervention in the next few weeks, our plant will have to close."That is because the government has made a series of decisions that undercut UK ethanol production in favour of US imports. The most recent trade deal was the final blow."If there is no government intervention, we will not be able to purchase any more wheat outside our current, limited, commercial commitments."The firm said that without urgent action, the plant, which employs more than 160 people, would no longer be viable and its wheat purchases would Hackett added: "This is avertable. If the government provides sufficient policy certainty to us in the long term and ameliorates the effects of their decisions in the short term, we can continue to operate and expand production."But so far, they have made no commitments." Earlier this month, Business Secretary Jonathan Reynolds met representatives of ABF and the country's other key bioethanol producer, Ensus UK, which is based in firms said the the secretary of state agreed on the need for "urgent next steps" to protect the UK's bioethanol industry and had committed to act within "days, not weeks" amid concerns that hundreds of jobs could be at Hackett said: "So far, nothing has been forthcoming."However, he added: "We still believe this situation can be turned around – but time is rapidly running out."In response, a government spokesperson said: "We signed a deal with the US in the national interest to secure thousands of jobs across key sectors."We are now working closely with the industry to understand the impacts of the UK-US trade deal on the UK's two bioethanol companies and are open to discussion over potential options for support."The Saltend plant produces bioethanol which is used in E10 petrol.E10, which was introduced in 2021 to help cut carbon emissions, contains up to 10% also produces animal feed, which is a by-product of the bioethanol production process. Listen to highlights from Hull and East Yorkshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Reuters
27-05-2025
- Business
- Reuters
India's E.I.D.-Parry reports quarterly profit rise, aided by distillery segment
May 27 (Reuters) - Indian sugar maker E.I.D.-Parry ( opens new tab reported a 46% rise in fourth-quarter profit before tax and exceptional items on Tuesday, boosted by strong performance in its distillery segment following recent capacity expansions. The company's profit before tax and exceptional items rose to 1.61 billion rupees ($18.9 million) in the three months ended March 31, from 1.1 billion rupees a year earlier. Revenue from operations increased 13.5% to 8.14 billion rupees. The company posted a 1.7% slide in revenue from its mainstay sugar segment, which was offset by a 19.8% rise in its distillery segment, which produces ethanol. E.I.D.-Parry reported a loss after tax of 2.32 billion rupees due to an exceptional loss of 3.5 billion rupees due to impairment of investment in its subsidiary Parry Sugars Refinery India. For further results highlights, click (Full Story, opens new tab). The company said its sugar segment revenue declined due to lower crushing and production, impacted by reduced cane volume, higher cane costs, and weaker recoveries. Sugar prices failed to keep pace with rising costs, it said. However, the rise in revenue from its distillery segment helped cushion the bottom line, benefiting from improved capacity utilisation following recent expansion. PEER COMPARISON * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 85.3740 rupees
Yahoo
26-05-2025
- Business
- Yahoo
Dwarikesh Sugar Industries Ltd (BOM:532610) Q4 2025 Earnings Call Highlights: Strong Profit ...
Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Dwarikesh Sugar Industries Ltd (BOM:532610) reported a significant increase in profit before tax (PBT) and profit after tax (PAT) for Q4 FY25 compared to the same quarter last year. The company achieved higher average sugar realization prices during the quarter, contributing to improved financial performance. There was an increase in sugar sales volume during the quarter compared to the previous year. The company managed to exercise tight financial discipline, maintaining a lean and trim loan profile with timely debt repayments. Dwarikesh Sugar Industries Ltd is optimistic about future performance due to varietal development and expects better cane availability and crushing numbers in upcoming seasons. On a full-year basis, the company's performance was not as strong as expected, with lower EBITA compared to the previous financial year. There was a significant drop in sugarcane crushing, impacting both sugar and ethanol production. The company faced challenges due to the red rot disease affecting sugarcane crops, leading to reduced yields and recovery rates. Ethanol sales were lower on a full-year basis compared to the previous financial year. The government did not increase the procurement price for ethanol, which could impact future production decisions. Warning! GuruFocus has detected 3 Warning Signs with BOM:532610. Q: What is the expected percentage of non-0238 sugarcane variety for the next season, and how much sugarcane will be diverted towards ethanol production? A: The company expects about 70% of the sugarcane supply to be of non-0238 variety. The decision to divert sugarcane juice for ethanol production will depend on the government's announcement of procurement prices. If sugar prices remain favorable, the company may prioritize sugar production over ethanol unless the government increases the procurement price for ethanol. (Respondent: Managing Director) Q: How did the non-0238 sugarcane variety affect recovery and crushing, and what are the expectations for the next season? A: The lower recovery last season was seen as an aberration, possibly due to weather conditions. The company is trying new varieties like 118, which are gaining popularity. By next season, they expect to have a variety that matches the yield and recovery of 0238. (Respondent: Managing Director) Q: When can we expect to reach previous highs in crushing numbers? A: The company expects to see improvement in crushing numbers by the 2026-2027 season, with better results anticipated in the 2025-2026 season compared to the current one. (Respondent: Managing Director) Q: Is the worst behind the company, and what are the expectations for ethanol pricing? A: Yes, the worst is considered to be behind the company. The industry is in constant dialogue with the government regarding ethanol pricing, and any changes are expected to be announced around October or November. (Respondent: Managing Director) Q: What is the current inventory level and its valuation? A: The company is carrying about 15.79 lakh quintals of sugar, valued at ?3,727 per quintal as of March 31, 2025. (Respondent: Managing Director) Q: How will the company balance sugar and ethanol production given current market conditions? A: The decision will depend on multiple factors, including sugar prices and government incentives for ethanol. If sugar prices remain high, the company may focus more on sugar production. (Respondent: Managing Director) Q: What is the global demand-supply situation for sugar, and how does it affect the company? A: The global sugar market is currently in a deficit, with expectations of a surplus in the next season. However, the surplus is not expected to be large, and current global prices have already factored in increased production. (Respondent: Managing Director) Q: What are the company's expectations for ethanol blending targets and government support? A: The government is focused on achieving a 20% ethanol blending target, with ongoing discussions about increasing this target. However, no concrete announcements have been made yet. (Respondent: Managing Director) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
