Gtl Resources Share Discussion Threads

[caveat_emptor] 12/5/2011 08:56

Pacific Ethanol reports smaller loss for Q1
Sacramento Business Journal - by Melanie Turner, staff writer
Date: Wednesday, May 11, 2011, 2:18pm PDT
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Energy
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Shareholders reacted favorably to Pacific Ethanol's first-quarter earnings report Wednesday, which showed the company has narrowed its loss and boosted sales.

Pacific Ethanol (Nasdaq: PEIX) reported a first-quarter loss of $4.7 million compared to a loss of $10.9 million for first-quarter 2010.

"In the first quarter of 2011 we built on the strong foundation established in 2010 as we narrowed our loss from $11.7 million in the first quarter of 2010 to near break even this quarter, despite a challenging margin environment," company president and chief executive officer Neil Koehler said in a statement.

The net loss available to common stockholders for the first quarter was $294,000, compared to a net loss of $11.7 million for the three-month period a year earlier.

Pacific Ethanol increased total gallons sold for the seventh consecutive quarter for a compound annual growth rate of 66 percent. Its 60-million-gallon Stockton plant, which resumed production last year, contributed to the overall boost in gallons sold and gross profit.

"We look forward to building on this momentum in the months ahead," Koehler added.

Revenue was $173 million for the quarter compared to $71.3 million for first-quarter 2010. Pacific Ethanol sold 84.6 million gallons in the quarter, an increase of 25.9 million gallons over the 58.7 million gallons sold in first-quarter 2010.

[cerrito] 11/5/2011 23:27

Thanks Caveat Emptor
Interested that there was no comment on DDG sales which I assume they do, though not evident from the figures.
They do seem to have suffered a fall in margins ie cost of corn up by 79% in Calender Q1 11 compared to Q1 10 from 3.70 to 6.63 and ethanol only up 38% from 1.83 to 2.53.
This does not surprise me but we can take some comfort from the fact that GTL reported commodity margins in the Q1 period were good.

[caveat_emptor] 11/5/2011 21:52

Pacific Ethanol, Inc. Reports First Quarter 2011 Financial Results
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Pacific Ethanol (NASDAQ:PEIX)
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Today : Wednesday 11 May 2011
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Net Sales for the First Quarter of 2011 Grew 143% Over the Same Period of 2010

Total Gallons Sold for the First Quarter of 2011 Increased 44% Over the Same Period of 2010

Adjusted EBITDA for the First Quarter of 2011 Improved to $1.5 Million From a Loss of $6.4 Million in the Same Period of 2010


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 quarter ended March 31, 2011.

Neil Koehler, the company's president and CEO, stated: "In the first quarter of 2011, we built on the strong foundation established in 2010 as we narrowed our loss from $11.7 million in the first quarter of 2010 to near breakeven this quarter, despite a challenging margin environment. We increased total gallons sold for the seventh consecutive quarter, demonstrating a compound annual growth rate of 66 percent. In addition, our 60 million gallon Stockton facility contributed to our growth in total gallons sold and gross profit. We look forward to building on this momentum into the months ahead."

Financial Results for the Quarter Ended March 31, 2011

Net sales were $173.1 million for the first quarter of 2011, compared to $71.3 million for the first quarter of 2010. Total gallons sold were 84.6 million for the first quarter of 2011, an increase of 25.9 million gallons over the 58.7 million gallons sold in the first quarter of 2010. The increase in net sales was primarily driven by the continued strength in Kinergy's marketing business with a 22% increase in third party gallons sold and a 38% increase in average sales price per gallon. In addition, the first quarter 2011 results include the impact of the Stockton plant being in operation whereas it was idled during the first quarter of 2010.

Gross profit was $2.6 million for the first quarter of 2011, compared to a gross loss of $3.0 million in the first quarter of 2010. The increase in gross profit was attributable to an additional plant being in operation in the first quarter of 2011 versus the same period in 2010. Operating loss for the first quarter of 2011 improved to $1.6 million from $6.2 million for the same period in 2010.

During the first quarter of 2011, the company recorded a non-cash gain of $0.9 million for fair value adjustments on convertible notes and warrants, representing the company's quarterly fair value adjustments. The company anticipates it will continue to revalue the convertible notes and warrants on a quarterly basis for the remainder of 2011.

Net loss available to common stockholders for the first quarter of 2011 was $0.3 million, compared to a net loss of $11.7 million for the first quarter of 2010. Adjusted EBITDA, which excludes the fair value adjustments on convertible notes and warrants of $0.9 million, improved to $1.5 million for the first quarter of 2011 from a loss of $6.4 million in the first quarter of 2010.

[caveat_emptor] 10/5/2011 08:43

It's nice to be in the thick of so much controversy,
and be a smart operator, who at worst only has to
source 100m gallons worth of corn, to more than break
even, and no debt, and then harvest, so to speak, healthy
profits from the by-products of such a light weight of raw
material.

Upcoming results should make very interesting reading
for any shareholder, especially a "long", who thinks we
have a smart one in RR.....?

[caveat_emptor] 09/5/2011 07:59

At last common sense prevails, in the American world of
Political Compromise.

Corn, Ethanol Groups Welcome Bill Transforming Current Ethanol Tax Policy (5-4-11)

May 4: The National Corn Growers Association (NCGA), the American Coalition for Ethanol (ACE), Growth Energy and the Renewable Fuels Association (RFA) today praised the legislation offered by a bipartisan group of senators, led by Iowa Senator Chuck Grassley, to responsibly transition and transform current ethanol tax policy. This legislation would reduce the current blender's credit, also known as VEETC, for a two-year period before transitioning to a tax credit that would adjust based on the price of oil. Importantly, this legislation would also improve upon current tax credits for the installation of blender pumps and ethanol fueling infrastructure. Additionally, the bill would extend tax credits for small ethanol producers as well as for advanced and cellulosic ethanol.

Original cosponsors of the Domestic Energy Promotion Act of 2011 include: Senator Kent Conrad (D-ND), Senator Mike Johanns (R-NE), Senator Amy Klobuchar (D-MN), Senator Al Franken (D-MN), Senator Tim Johnson (D-SD), Senator Tom Harkin (D-IA), and Senator Ben Nelson (D-NE).

The groups issued the following statement:

"The leadership of Senator Grassley and this distinguished bipartisan group of cosponsors has been and remains instrumental in allowing America's ethanol industry to grow and evolve. At a time of near-record gas prices and continued volatility in world oil markets, America's growing production and reliance of domestic ethanol sources is creating jobs, keeping gasoline prices down, and reducing this nation's appetite for imported oil. Domestic Energy Promotion Act of 2011 would ensure we don't abandon this increasingly vital American industry, but rather smartly and responsibly foster its continued growth and evolution."

"This legislation rightfully recognizes budget constraints by reforming the ethanol tax credit and significantly reducing its cost. Additionally, this bill would improve current tax credits for the installation of blender pumps offering higher level ethanol blends and provide Americans more choice when they fill up. Critically, this legislation would also ensure progress made to commercialize advanced ethanol technologies utilizing new feedstocks such as grasses and municipal solid waste is accelerated. We thank these senators for their leadership in introducing this bill and look forward to working with them through the legislative process that ultimately ends with the President's signature."

According to a recent report from Iowa State University, the University of Wisconsin, and the Center for Agriculture and Rural Development, the growth in production and use of ethanol kept American gas prices $0.89 lower than it otherwise would have been in 2010. Such downward pressure on the gasoline market saved the average American family more than $800 last year alone. From 2000-2010, ethanol kept gasoline prices $0.25 cents lower on average than they otherwise would have been, resulting in nearly $35 billion in avoided cost at the pump for consumers.

[caveat_emptor] 08/5/2011 11:41

Jut checked and it seems that the subsidy in tax credits to the
oil companies is 40 cents a gallon.

[caveat_emptor] 08/5/2011 08:51

Very interesting closing remark..........Int Business Times

By Aaron Levitt | May 7, 2011 20:04 GMT

Brazilian ethanol, which is made from sugarcane, has traditionally been one of the cheapest sources of biofuels around. However, according to the U.S. commerce department, Brazil imported nearly 70 million liters of corn-based US ethanol in 2010, up from just 1 million in 2009. The surge in ethanol imports expose disappointing Brazilian production and overall rising fuel consumption. The majority of cars and light trucks in the nation operate on a fuel that is a blend of ethanol and gasoline. In addition, "flex-fuel" vehicles are gaining in popularity within the nation. The biggest reason for the increase could be the Brazilian real's rise against the U.S. dollar. The falling greenback has made U.S. exports more desirable to foreign nations.



"The U.S. corn ethanol industry, which has been criticized by both environmentalists and free-market economists, could be reaching a point where producers can compete without state subsidies. The U.S. is now the world's second-largest ethanol exporter, selling to the Middle East, Europe and Canada."

I wonder will Richard Ruebe speak to that specific prospect in the results out shortly.

[caveat_emptor] 08/5/2011 08:42

The debate continues to rage...the republicans can see the only way to hurt
Obama's vote in the Corn Belt is to target E in other States.......

Now the Ethanol industry has entered the traditional pre election compromise phase, and offered concessions on subsidies over time for phased grant aided
expansion of E pumps across the US...implacably opposed and opposition financed
by the bottomless pockets of the OIL lobby.....

However, not without cost to the OIL lobby whose campaign seems to be backfiring
with a hard pressed consumer calling...well if we hit E we should also hit O...

This campaign will cost the Oil companies dearly!!!



The fat lady must pass wind before she can sing!!!

[caveat_emptor] 07/5/2011 10:02

There are some people who know how to make money out of E,
and some that will never know how to make money out of E.

Inevitably phasing out subsidies, certainly not before
the end of Obama's second term, (and after last week I put a 10k bet on that),
((Obama and Ethanol are a central plank to his corn belt supporters' votes)),
and introducing the grants to cover the cost of installing E pumps all over
the USA, will herald the survival of some plants currently going bust...but
won't be enough to save some already bust(Bill Gates should stick to making
software), the moment of consolidation in the E industry will have arived.

Somethig else will have to emerge to avoid the local social fallout of quite a number of inefficient E plants.

That's how it works in America!!!

Now I look forward to the paying down of GTL debt, and the day when
they jouin forces with the most efficient E manufactures in the USA
to do this.............

[caveat_emptor] 07/5/2011 09:17

Don't forget to read the label on the zein packet in the photograph!!!

[caveat_emptor] 07/5/2011 09:09

Found this......................

[caveat_emptor] 06/5/2011 10:11

Brazilian imports of US ethanol soar

By Ed Crooks and Gregory Meyer in New York

Published: May 5 2011 22:47 | Last updated: May 5 2011 22:47

US exports of ethanol to Brazil have soared during the past year as the real's rise against the dollar and the high price of sugar have undermined the competitiveness of Brazil's domestically produced biofuel.

The share of the Brazilian market taken by US exports is still small but the steep rise in sales to the world's second-biggest producer reflects the US industry's growing commercial strength, which is also driving political pressure for the removal of state subsidies.

EDITOR'S CHOICE
Success fuels ethanol subsidy changes - May-05
beyondbrics: Mantega - fuelling inflation - Apr-27
Ethanol backers offer subsidy cuts - May-05
ADM profits rise on food and fuel demand - May-03

Brazilian ethanol made from sugarcane has been the cheapest biofuel for years. Yet Brazil imported 70m litres of US ethanol in 2010, up from just 1m in 2009, according to the US commerce department.

The boom in ethanol imports reflects disappointing Brazilian production and rising fuel consumption, from the cars and light trucks that run on Brazil's standard road fuel, a blend of ethanol and petrol, and the popular "flex-fuel" vehicles that run on petrol or pure ethanol.

Brazil's ethanol production in the 2010-11 season fell short of forecasts, rising only 3 per cent to 25.3bn litres, according to Czarnikow, the London-based sugar merchant. "Brazilian supply has been unable to match the rise in demand," it said.

Geraldine Kutas of the Brazilian Sugarcane Industry Association said unusual circumstances had forced Brazil to import ethanol. "We have had two bad harvests in the last two years – one because it rained too much and the other because it was too dry," she said.

The steep fall in the sugar price will improve the competitiveness of Brazilian ethanol.

However, the US has now established itself as the world's second-largest ethanol exporter, selling to the Middle East, Europe and Canada, with its products made competitive by the fall in value of the dollar.

The US corn ethanol industry, criticised by environmentalists for its carbon emissions and free-market economists for its reliance on subsidies, is approaching the point where producers believe they can compete without state support.

In Congress this week, senators Chuck Grassley and Kent Conrad proposed legislation to pare back almost to nothing the tax breaks available for ethanol.

Chuck Woodside, chairman of the Renewable Fuels Association and general manager of Nebraska-based KAAPA Ethanol, said: "As we sit here, ethanol produced in Minden, Nebraska, is the cheapest motor fuel out there."

The proposed law calls for a three-year transition period for cutting the blenders' tax credit, so that in 2014 it becomes payable on a sliding scale linked to the price of oil. If crude is above $90 per barrel – which it is at the moment, and seems likely to be on average in the long term – then no credit would be paid.

Ethanol industry associations support this bill, seeing it as a way to preserve a safety net in case of a plunge in the oil price and to head off calls in Congress for an outright abolition of the credit.

Chuck Woodside, chairman of the Renewable Fuels Association, said: "We appreciate the budgetary constraints in Washington: this is a completely different environment from two or three years ago. There is already a huge financial incentive to blend ethanol."

However, the legislation as presented would retain a 15 cent per gallon tariff on ethanol imports until 2016, a measure that was opposed in Brazil. Ms Kutas said: "Free trade is a two-way street and we expect the US to eliminate the tariff. Now the US is not only the main producer of ethanol but also the main exporter."

Additional reporting by Joe Leahy in São Paulo

Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

[caveat_emptor] 06/5/2011 09:19

These guys are probably 2nd generation of Irish descent.

illinois River Energy

CEO...McCabe

Director, 1 of 4, O'Connor.

[caveat_emptor] 05/5/2011 16:06

Thanks...but...
To be fair, there is a substantial body of opinion
that is anti corn to ethanol and not on thin grounds
either, but who would close the business down on a
whole series of complaints. When the head of Unilever
speaks out at the crazy consumption of corn, and it is
then revealed that he is a director of Exxon Mobil, you
sort of see the bottom of the opposing barrel....forgive
the pun?

I guess they won't give up until they have a President in power
who does not see E and corn as a viable partnership....so
the most they will get is a gradual phase out of subsidies
as long as Obama is still in power....given his connections
with Chicago and Illinois and the corn belt farming vote.

By then...there is a strong chance that GTL's corn won't
be for cars at all.

[ljsquash] 05/5/2011 15:46

Great research thanks yet again Caveat_Emptor!

[caveat_emptor] 05/5/2011 09:41

We are also developing a wholly different audience who will
want to buy GTL shares...as well as those of the partner development company
which presumeably will ipo at some point!!!

Fabulous article....must read for those seeking reasons to stay invested
in GTL and who have the farsight to see beyond "E"

[caveat_emptor] 05/5/2011 09:36

The COPE Project
We have developed methods for producing low-cost zein for the food and industrial markets. Our COPE (Corn Oil and Protein Extraction) process uses ethanol for the initial extraction of zein from corn or corn co-products. This is then combined with membrane technology for the separation, isolation and purification of zein from the ethanolic zein solution. Membrane technology offers the possibility of selective low-energy low-cost separation of zein and for recycle of the ethanol solvent without the substantial evaporation costs that now limit other zein extraction processes. Additional economies are possible if COPE-zein production is carried out in dry-grind ethanol plants, since they already have the two key raw materials (corn and ehanol).

Further refinements of the COPE process have been developed to extract additional high-value coproducts such as a "healthy" corn oil loaded with nutrients such as carotenoids, vitamins and phytosterols, and nutraceuticals such as xanthophylls (lutein and zeaxanthin).

Our preliminary economic analysis shows a net revenue of $2-4/bushel corn, depending on the coproduct(s). This translates into an additional income of $75-150 million per year for a plant producing 100 million gallons of ethanol/year (380 million liters/year) without any additional raw materials being used (we "borrow" in-house ground corn and ethanol). Considering that US corn-based ethanol capacity is over 10 billion gallons per year, the potential impact of our research is significant.

This technology has resulted in several US and Canadian patents and has been licensed through the University of Illinois to Prairie Gold Inc., Bloomington, Illinois for commercialization.

2. Zein as a functional food ingredient
The main obstacle to utilization of zein in human food products is their poor "functionality". Functional properties refer to those attributes that provide the desired physical or sensory properties to the food. For example, proteins contribute not only nutritional quality to a food, but also to textural properties such as gelation (important in meats, cheeses, gels, etc.), adhesion (meats, bakery, pasta), emulsification (Deli meats, soups, cakes), foaming/whipping (cakes, frozen desserts) and moisture sorption (intermediate moisture, shelf-stable foods).

Poor functionality of corn proteins is generally related to their insolubility in aqueous systems; proteins generally have to be in solution or fine suspension in order to exert their desirable functional properties in foods.

In the mid-1980s, our group at the University of Illinois set about to improve the water solubility of corn proteins and some of its functional properties. The approach was enzymatic modification combined with membrane technology to produce specific protein fractions or peptides from corn gluten meal. With zein (one of the two major proteins in corn), this involved a unique two phase sequential process: an organic phase enzyme reaction followed by an aqueous phase enzyme reaction.

What are the results?
A successful combination of enzymatic modification and fractionation by membrane technology has created two new corn protein products: a water-soluble zein and an enzyme treated corn gluten meal (in which the glutelin fraction has been modified). Functional properties were dramatically improved by this treatment. For example, for zein:

Protein solubility in water increased from 0% to 99% over the pH range expected in foods.

Protein solubility could be partially controlled by membrane pore size: solubility decreased with larger membrane pore size.

Clarity, solubility and foaming properties increased with Degree of Hydrolysis. Ultrafiltration increased foam volume and decreased foam stability.

Moisture sorption properties of Illinois-process zein fractions were vastly superior to unmodified proteins, and better than soy protein hydrolysates produced in a similar manner.

Similar improvements were also observed for the enzyme treated CGM. This development should enhance the utilization of corn proteins for food products.

Major funding for the above corn projects have come from the Illinois Corn Marketing Board . the Illinois Department of Commerce and Economic Opportunity, US Department of Agriculture NRICGP program, several membrane companies and MAFMA. Partnerships and collaborations were established with engineering companies, membrane manufacturers, food companies and ingredient manufacturers to research, develop and market the various processes. Publications on this topic
Research -- Other topics

Updated July 2009 by [e-mail]

[caveat_emptor] 05/5/2011 09:35

ZEIN: THE INDUSTRIAL BIOPOLYMER FOR THE 21st CENTURY

The United States produces about 300-325 million tons of corn per year, accounting for about 40-50% of the world's annual production. About 50% of US corn is used directly as animal feed, about 25% is used for ethanol production and the rest for export and producion of food, feed, fiber and industrial products.

There are four basic methods for processing corn: Alkaline Processing, Dry Milling, Wet Milling and Dry-Grind (for ethanol production). Corn wet milling is a process that utilizes mechanical unit operations -- size reduction (milling), aqueous extraction and separation (filtration, centrifugation) -- for separating and purifying the major corn components such as oil, starch, protein, fiber. Corn refiners take the process further and convert the starch into a myriad of food and industrial products. Wet milling generates large amounts of protein co-products : about 5-6% of the corn becomes corn gluten meal (CGM, 60% protein) and 24% of corn dry weight is corn gluten feed (CGF, 21% protein).

Much of the fuel ethanol produced today in the US is by the "Dry-Grind" process. This also generates co-products (DDG or DDGS) that contain all the non-starch components of corn, amounting to about 28% of the corn processed. Most of these protein co-products are currently marketed as animal feed at low prices. Another one-third of the corn becomes carbon dioxide which is another zero- or low-value coproduct.

The high demand for corn starch and starch-based products -- sweeteners, syrups, ethanol, bioproducts, organic acids, food ingredients -- will create a disposal problem for the growing quantities of protein co-products. In addition, the corn processing industry must also consider increasingly tight environmental regulations and limitations of international markets for CGF and CGM.

There are two possible alternate higher-value outlets for corn protein:
(1) As an industrial polymer, e.g.,biodegradable plastics and films and
(2) As a functional ingredient in (human) food products.

Protein forms about 9% of the dry weight of corn. It is composed mainly of zein (a highly hydrophobic protein, soluble in isopropanol or ethanol), glutelin (soluble in aqueous alkaline solutions), albumins and globulins. Zein comprises about 40% of the total kernel protein on a dry basis.
1. Zein as an industrial biopolymer
Zein was first discovered by Gorham in 1821. Osborne developed the first patented process for extraction of zein from corn gluten meal (CGM) using 95% ethanol. Swallen et al. were granted a series of patents on zein production using different alcohols of varying concentrations and additives. Zein became commercially available in 1938 and quickly found application in coatings, fibers, films, plastics, adhesives and inks. Zein (often combined with vegetable oils and glycerin as plasticizers) is used as a waxing or glaze, to enhance shelf life of pharmaceutical tablets, nuts and candies by acting as a water and oxygen barrier. This was part of the �chemurgyA533; movement where crop/farm by-products were utilized by industry. Zein fibers with the commercial name of Vicara was produced by the Virginia-Carolina Chemical Corporation in 1948. It was marketed for its claims of washability, the warmth of wool and resistance to moths and mildew.

Zein reached a peak production of 7 million kg per year in 1956 but with the development of cheaper synthetic materials, the market for zein dropped significantly by 1960. Today there is one known manufacturer of zein in USA and one in Japan. The cost of purified zein is $20-70 per kg depending on the grade and purity. However, this price makes zein an uneconomical material for large industrial uses such as biodegradable plastics, since petroleum-based polymer resins sell for much lower prices ($0.35-0.70 per kg).

Even though there are several hundred patents on applications of zein and renewed interest due to its biodegradability and potential nanotechnology applications, its current high price is still a limitation. The potential market for zein should now be good, considering:
(1) Increased demand for true 100% biodegradable packaging and films
(2) The low margins in some sectors of the corn processing industry that are eager to find higher-value outlets for their co-products,
(3) Valuable lessons learned from previous attempts at corn-based "biodegradable" plastics : these were largely starch-based and did not fare well in the market for various reasons.

Assuming that "biodegradability" and being "renewable" and "green" can enhance the value of zein-based films and packaging, this market could use a substantial portion of the zein in the 5 billion bushels (1 bushel = 25 kg) of corn presently processed into food, feed and industrial products in USA today. However, the cost of zein must be reduced and the quality improved over what is currently available.

[caveat_emptor] 05/5/2011 09:33

More on the scientific aspects of Zein Protein

Rename GTL and call it....

"CTF"

Corn to Food!!!