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Achieved significant milestones on corporate objectives:
Purchased additional 33% ownership in Pacific Ethanol plants, bringing total ownership to 67%
Amended plant credit agreement, extending maturity date on $46.7 million in loans and improving liquidity in plant operations
Implemented corn oil separation technology in first of four plants
SACRAMENTO, Calif., Aug. 14, 2012 (GLOBE NEWSWIRE) --
Pacific Ethanol, Inc. (Nasdaq:PEIX), the leading marketer and producer of low-carbon renewable fuels in the Western United States, reported its financial results for the three months ended June 30, 2012.
Neil Koehler, the company's president and CEO, stated: "During the second quarter, we made significant progress on our 2012 strategic objectives. We acquired an additional 33% ownership interest in the plants at a discount to our last purchase price and at an even greater discount to replacement cost, and we now hold a 67% ownership interest. We amended the plant credit agreement, which provides additional liquidity for plant operations. In addition, we will diversify our revenue stream in production with the implementation of corn oil separation at the first of our four plants."
"In response to the current adverse market conditions for production of ethanol, we have moderated production at the Pacific Ethanol plants to better optimize plant efficiencies and meet our customers' needs. Looking ahead, the underlying industry fundamentals remain sound and we expect results to improve in the second half of the year."
Financial Results for the Three Months Ended June 30, 2012
Net sales were $205.4 million for the second quarter of 2012, compared to $214.6 million for the second quarter of 2011. Total gallons sold were 116.6 million for the second quarter of 2012, an increase of 16% over the 100.6 million gallons sold in the second quarter of 2011. The decline in net sales was attributable to a lower average price per gallon of ethanol sold.