Pacific Ethanol’s production of alcohol for sanitizers helped Q2 2020 results, $14.6M net income

August 30, 2020 |

In California, Pacific Ethanol reported second quarter 2020 results showing a net income of $14.6 million and adjusted EBITDA of $28.8 million, expects an adjusted EBITDA for the second half of 2020 to be in the range of $50 to $70 million, and significantly increased their high quality alcohol production for use in hand sanitizers and disinfectants to meet the demand due to COVID-19.

They also had total debt reduced by $34.4 million during the second quarter.

“Our strong second quarter financial results, including net income of $14.6 million and Adjusted EBITDA of $28.8 million, were driven by our diversified product portfolio and expanded production of high quality alcohol,” said Mike Kandris, Pacific Ethanol’s Co-CEO. “Our Pekin campus has produced industrial, chemical and beverage grade alcohol for over 100 years, and we recently announced an expansion of our production capacity to meet the demand for our high quality alcohol used in sanitizers and disinfectants, which has increased significantly due to the ongoing coronavirus pandemic. We also continue to experience strong demand for our high value feed and food products, which our Pekin facilities have produced for over 20 years.”

“Looking at the second half of the year, we expect Adjusted EBITDA to range between $50 and $70 million, with momentum continuing into 2021,” stated Bryon McGregor, Pacific Ethanol’s CFO. “In addition to reducing our debt by $34.4 million in the second quarter, we continue to work with our lenders to satisfy our continuing obligation to agree on a plan to eliminate or refinance our term debt. To this end, our goal is to reduce our total term debt outstanding at year end by at least $70 million. We believe that continued debt reduction and profitable growth will position us well for delivering long-term growth and value for our stakeholders.”

Category: Fuels

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