Pacific Ethanol jumps after stronger second quarter results

Shares of Pacific Ethanol (PEIX) are on the rise on Wednesday after the alcohol products and low-carbon renewable fuels producer reported improved second quarter results and issued its second half adjusted EBITDA outlook. RESULTS: Pacific Ethanol reported second quarter earnings per share of 27c, which was better than the one analyst estimate for a (20c) loss per share, and revenue for the quarter of $212.1M, also better than the one estimate of $179.7M. Additionally, the company said that adjusted EBITDA for the second half of 2020 is expected to be in the range of $50M-$70M. "Our strong second quarter financial results, including net income of $14.6M and Adjusted EBITDA of $28.8M, were driven by our diversified product portfolio and expanded production of high quality alcohol," said Mike Kandris, Pacific Ethanol's Co-CEO. "Our Pekin campus has produced industrial, chemical and beverage grade alcohol for over 100 years, and we recently announced an expansion of our production capacity to meet the demand for our high quality alcohol used in sanitizers and disinfectants, which has increased significantly due to the ongoing coronavirus pandemic." The company's CFO Bryon McGregor added that, "Looking at the second half of the year, we expect Adjusted EBITDA to range between $50 and $70 million, with momentum continuing into 2021. In addition to reducing our debt by $34.4M in the second quarter, we continue to work with our lenders to satisfy our continuing obligation to agree on a plan to eliminate or refinance our term debt. To this end, our goal is to reduce our total term debt outstanding at year end by at least $70M. We believe that continued debt reduction and profitable growth will position us well for delivering long-term growth and value for our stakeholders." PRICE ACTION: In late morning trading, shares of Pacific Ethanol have gained 56c, or 16% to $4.05.