Shares of Pacific Ethanol surged more than 11 percent to $10.40 in after-hours trading Wednesday afternoon after the low-carbon, renewable fuels manufacturer reported record fourth quarter and full year earnings.
The Sacramento-based company, which operates a plant in Madera beat analysts’ expectations, reporting its adjusted net earnings for the most recent quarter were 41 cents per diluted share versus 15 cents analysts were expecting.
The company’s net sales for the fourth quarter of 2014 grew to $256.2 million. Analysts were predicting $246.3 million in Q4 sales.
The rise in revenue, according to the company’s report, was attributed to an increase in total gallons sold, which was offset slightly by a reduction in the company’s average sales price per gallon.
On December 31, 2014, Pacific Ethanol announced the company had entered into a merger agreement with Aventine Renewable Energy Holdings, a deal that will extend Pacific Ethanol’s manufacturing capabilities into the Midwest and Eastern U.S.
And there was more good news for the company’s shareholders.
Net sales for 2014 came in at a record $1.1 billion, compared to $908.4 million for 2013. Earnings from those sales last year amounted to $20 million, compared to a $2 million loss in 2013. Gross profit was also a record $108.5 million for 2014, compared to $32.9 million in 2013. And operating income for 2014 also came in at a record $91.4 million versus $18.9 million for 2013.
“Our record financial and operating results in 2014 are a culmination of numerous efficiency and debt reduction initiatives we implemented over the past several years combined with strong market fundamentals,” said Pacific Ethanol CEO Neil Koehler.