Pacific Ethanol could sell some assets, reports Q2 results

In California, Pacific Ethanol, Inc., a producer and marketer of low-carbon renewable fuels and alcohol products, reported its financial results for Q2 2019 and said they are “actively engaged in discussions which could lead to the sale of production assets, new financing arrangements, the formation of new strategic partnerships or some combination of these alternatives,” according to Neil Koehler, Pacific Ethanol’s president and CEO on their latest earnings call transcript posted on NASDAQ.

Koehler noted on the call that “gross margins were slightly better than in the first quarter, but continue to be near historic lows. Our team did an admirable job in controlling costs and running efficiently under the adverse market conditions. Our net sales were $346 million, down nearly $10 million from Q1, due primarily to the flooding on the Illinois and Mississippi Rivers, upon which we largely depend on to transport product from our Pekin facilities. The plants have now returned to full production with higher river levels subsiding in mid-July.”