Pacific Ethanol Inc (NASDAQ:PEIX) Moves Up Sharply
Pacific Ethanol Inc (NASDAQ:PEIX) stock has been posting close to double digit jump in its market valuation ever since it reported blockbuster results to its fourth quarter and full year operations on 27th February. The speciality chemicals manufacturer also reported that it was restarting operations at its stalled Western U.S plant located at Madera from June of 2014. This news too added to the general boost in investor confidence in the company stock, since it would mean that the ethanol production would jump up to 200 million gallons starting 2014.
In his opening remarks while kicking off the earning call, Pacific Ethanol Inc (NASDAQ:PEIX) President and Chief Executive Officer Neil Koehler has been quoted to have said that,” Our fourth quarter 2013 results cap-off a year of record financial performance and significant progress for Pacific Ethanol. During 2013, we diversified our feedstock with sorghum and beet sugar, we added new revenue streams with corn oil separation, and we continued to drive cost efficiencies at the plants”.
4Q Operational Highlights
The firm was also able to leverage the increased demand for ethanol in the market to show growth in all its key result areas of revenue, profit margins and earnings before tax. Quarterly sales were up to $215 million in 4Q as against $197 million it had recorded in 4Q12. Net profit was up to $21.6 million in 4Q as against a net loss of $4.7 million it had reported in 4Q. In spite of strong income being reported, the firm was also beset by doubling of its quarterly expenses to $4.4 million in 4Q as against $2.7 million in FY12. Operating income came in at $17.2 million in 4Q , which was a new record for the firm and was almost 2.5 times more than its 4Q12 number.