Rex American Resources Inc. announced its financial results for the fourth quarter on March 26th, highlighting an increase in ethanol sales volumes and continued progress with its planned carbon capture and storage (CCS) project in Illinois, reports Ethanol Producer Magazine.
Zafar Rizvi, Chief Executive Officer of Rex, stated that “the company made steady headway last year in developing the CCS project at its One Earth Energy ethanol plant located in Gibson City, Illinois.” He noted that “construction on the capture and compression components of the project was largely completed in the past year.” The company is currently awaiting approval from the U.S. EPA for a Class VI injection well, which Rizvi anticipates “the agency expects to issue in October.” He added, “We are optimistic that once we have obtained that permit, we will be able to proceed with other necessary state and local permits.”
Rizvi also addressed the moratorium enacted last year by Illinois on the permitting and construction of new CO2 pipelines. The moratorium will remain in effect for either two years or until new federal pipeline safety guidelines are approved and implemented, whichever occurs first. Rizvi expressed “optimism that the Trump administration will expedite the development of the required pipeline safety regulations.”
Rex also provided an update on its capacity expansion project at One Earth Energy. According to Rizvi, “company management is currently re-evaluating certain aspects of the expansion plan.” As a result of this review, “the estimated completion timeline for the expansion project will extend beyond the previously targeted mid-2025 timeframe.” Rex had previously indicated that the initial goal of the expansion project was to increase the capacity at One Earth Energy to 175 million gallons per year (MMgy), with additional permitting activities aimed at reaching a nameplate capacity of 200 MMgy.
Doug Bruggeman, Chief Financial Officer at Rex, reported that “the company sold 289.7 million gallons of ethanol last year, an increase from the 285.9 million gallons sold in 2023.” Fourth-quarter sales volume reached 74.7 million gallons, up from 72.1 million gallons in the same period of the previous year. Corn oil sales also saw a 1% increase for the year, reaching 88.1 million pounds. While sales of dried distillers grains decreased by 3%, sales of modified distillers grains showed an increase.
For the fourth fiscal quarter, Rex reported net sales and revenue of $158.2 million, a decrease from the $187.6 million reported in the same quarter of 2023. Net income for the quarter was $11.1 million, compared to $20.6 million in the prior year’s fourth quarter. Diluted net income per share attributable to Rex common shareholders was 63 cents, down from $1.16 per share during the fourth quarter of 2023.
Looking at the full year of 2024, Rex reported net sales and revenue of $642.5 million, down from $833.4 million in 2023. Net income attributable to Rex shareholders was $58.2 million, compared to $60.9 million in the previous year. The full fiscal year diluted net income per share attributable to Rex common shareholders was $3.30, compared to $3.47 per share in the fiscal year 2023.
Rex American Resources Inc. is the majority owner of One Earth Energy LLC in Gibson City, Illinois, and NuGen Energy LLC in Marion, South Dakota. These two facilities currently have a combined production capacity of 300 million gallons per year. The company also holds ownership stakes in Big River Resources West Burlington LLC in West Burlington, Iowa; Big River Resources Galva LLC in Galva, Illinois; Big River United Energy LLC in Dyersville, Iowa; and Big River Resources Boyceville LLC in Boyceville, Wisconsin. These four additional plants have a combined production capacity of 425 million gallons per year.
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