Green Plains Inc. (GPRE) shares plunged over 6% in the pre-market session on Friday, following the company's wider-than-expected loss for the fourth quarter of 2024 due to weak ethanol production margins.
The Nebraska-based biofuel producer reported a net loss of $54.9 million, or $0.86 per share, for the October-December quarter, significantly missing analysts' estimates of a loss of $0.32 per share. Revenues declined 18% year-over-year to $584 million, below expectations of $631.8 million.
The disappointing results were primarily driven by lower margins in the company's ethanol production segment, weighed down by lower weighted average selling prices for ethanol, distillers grains, and renewable corn oil, as well as lower volumes sold. Green Plains attributed the challenges to sustained localized margin pressure from flooding in certain regions.
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