Pacific Ethanol records record sales in 3rd Q, but falls into the red as vanishing ethanol margins take their toll

Pacific Ethanol reported net sales up 93 percent to $118 million for the third quarter, but the company recorded a loss of $3.8 million, or 7 cents per share, because of high corn prices and low ethanol prices. The company’s shares fell 93 cents — or 11.9 percent — to a 52-week low of $6.89 on Friday.

The company has lost $192 million in market value since August 27, after a series of downgrades and selling pressure resulting from the vanishing margins in ethanol production. The company has recently increased its capacity, and is expected to experience an improvement in results from risign ethanol prices and economies of scale.

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