Green Plains (GPRE, Financials) shares fell 23.9% to $6.31 as of 2:43 p.m. GMT-5 on Friday after the company reported a fourth-quarter net loss of $54.9 million, or $0.86 per diluted share, compared to a net income of $7.2 million, or $0.12 per share, in the same period a year earlier.
Lower selling prices and volumes for ethanol, distillers grains, and renewable corn oil drove revenue down 18% to $584 million from $712.4 million.Aiming at lowering yearly costs by up to $50 million, the corporation started a corporate restructuring and cost-cutting project. Early February saw the first step, totaling $30 million in cutbacks, executed. Green Plains also idle its Fairmont, Minnesota, plant citing localized margin pressure from floods.CEO Todd Becker said the firm is moving toward a focus on commercialization from capital-intensive expenditures in sales, marketing, and innovation. With carbon capture projects in Nebraska scheduled to start in the second half of 2025, Green Plains's "Advantage Nebraska" carbon plan is still on target, he said. The business started pipeline building after securing six Class VI Carbon Capture and Sequestration well licenses in Wyoming. Becker said the U.S. government incentive for low-carbon fuels, the 45Z Clean Fuel Production Credit, may provide a financial gain over first projections.Down 2.9% from 215.7 million gallons a year earlier, the company's ethanol-producing division sold 209.5 million gallons in the fourth quarter. Comparatively to a $53 million gain in the same quarter the previous year, the consolidated ethanol crush margin swung to a loss of $15.5 million.Green Plains also started running its clean sugar plant in Shenandoah, Iowa, and anticipates the first quarter of 2025 certification. To maximize plant operations, the corporation is looking at enhancements in wastewater capacity.Looking forward, Becker said the cost-cutting efforts of Green Plains together with its carbon capture results might total $180 million in yearly contributions. He also said that with further blending and capacity cutsincluding the Fairmont closingethanol market conditions might become better.Under its revolving credit agreement, Green Plains closed 2024 with $209.4 million in cash and equivalents and $200.7 million accessible. Total debt was $575.4 million.
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