Green Plains reports Q2 EPS (38c), consensus (12c)

Reports Q2 revenue $618.8M, consensus $644.79M. “While Q2 started with continued weakness, margins began to improve heading into the third quarter and we expect to return to profitability for the quarter based on current markets across our products and setting up a stronger second half of the year overall,” said CEO Todd Becker. “During Q2 we continued to progress toward our transformation goals, from new high protein capacity to carbon capture to commissioning Clean Sugar…Because of this progress, we believe we are well positioned to capitalize on the early days of the 45Z Clean Fuel Production Credit which should be beneficial for delivering increased earnings…The world’s first commercial scale Clean Sugar Technology facility began commissioning during Q2 and we continue to make progress in debottlenecking…As one part of our ongoing strategic review, we have entered into a definitive agreement to sell our unit train terminal in Birmingham. The proceeds will be used to help repay the outstanding balance of our Green Plains Partners term loan. Eliminating this higher priced debt will support generation of free cash flow and help to simplify and streamline the business, while allowing us to focus on our core strategic initiatives. We anticipate this transaction will close in Q3.”