Rex American Resources Inc. on Dec. 3 released fiscal third quarter financial results, reporting the three-month period was the second most profitable quarter in the company’s history. Work on the company’s capacity expansion and carbon capture and storage (CCS) projects is ongoing.
Rex is working to expand capacity at its One Earth Energy facility in Gibson City, Illinois, to 175 MMgy. Zafar Rizvi, CEO of Rex, said that project is on track to be complete in mid-2025. He said the electric interconnection from the local utility is moving ahead and should be complete by the first quarter of 2025. The company previously expected the capacity expansion project to be operational during the first quarter of 2025 but has now delayed that estimate. Rizvi attributed the change to recently communicated delays by one of the project’s equipment suppliers that is providing several necessary components for the expansion project.
Once the mechanical portion of the project is complete, Rex plans to initiate permitting activities that will allow the One Earth Energy facility to further boost production capacity to 200 MMgy.
Rex is also developing a CCS project at the One Earth Energy site. According to Rizvi, the carbon capture and compression portion of the CCS project is substantially complete. Additional work and testing on the capture and compression facilities is subject to the completion of the unity interconnection to supply power to the project. Federal permitting activities are ongoing, and Rex currently expects to receive its Class VI permit from the U.S. EPA in July 2025.
Doug Bruggeman, chief financial officer at Rex, reported that ethanol sales volumes for the fiscal third quarter, which is the three months ended Oct. 31, reached 75.5 million gallons, up 3% when compared to the same period of last year. Average sell price was $1.83 per gallon, down from $2.32 per gallon. Distillers grains sales volumes were at 170,116 tons, down 5%, with an average selling price of $147.14 pre ton, down from $194.94. Corn oil sales volumes were 23.4 million pounds, down from 24.1 million pounds. The average selling price for corn oil was 44 cents per pound, down from 61 cents per pound.
Rex reported third quarter net sales and revenue of $174.9 million, down from $221.1 million during the same period of 2023. The decrease is primarily attributed to reduced pricing for ethanol and coproducts. Gross profit was $39.7 million, up from $39.3 million, reflecting decreased corn and natural gas prices.
Net income attributable to Rex shareholders was $24.5 million for the third quarter, compared to $26.1 million during the same period of 2023. Fiscal third quarter diluted net income per share attributable to Rex common shareholders was $1.38, compared to $1.49 per share in the third quarter of 2023.
Rex is the majority owner of Gibson City, Illinois-based One Earth Energy LLC and Marion, South Dakota-based NuGen Energy LLC. Those two facilities currently have a combined capacity of 300 MMgy. The company also holds ownership shares in West Burlington, Iowa-based Big River Resources West Burlington LLC; Galva, Illinois-based Rig River Resources Galva LLC; Dyersville, Iowa-based Big River United Energy LLC; and Boyceville, Wisconsin-based Big River Resources Boyceville LLC. Those four plants have a combined capacity of 425 MMgy.
