Pacific Ethanol Inc., which has four plants, including one in Madera County, reported higher third-quarter profits Wednesday in spite of a recent steep decline in the price of ethanol.
The Sacramento-based ethanol producer said it earned $3.7 million in the third quarter compared with a $5.3 million loss a year earlier. It earned 15 cents per share compared with a 40-cent loss a year ago. Revenue improved to $275.6 million from $233.9 million last year.
The company has spent the past few years rebounding from a deep slump that forced it to shut down most of its production operations and place its plants in Chapter 11 bankruptcy reorganization. Stronger ethanol prices helped the company come back.
In recent months, however, the price of ethanol has fallen again. During the third quarter, Pacific Ethanol said the average gallon of ethanol sold for $2.32 vs. $2.62 a year ago. But the volume of ethanol was up substantially, and the price of corn fell considerably. Corn is the main raw material in ethanol.
http://www.fresnobee.com/2014/10/29/4205802_pacific-ethanol-reports-higher.html?sp=/99/170/&rh=1