Pacific Ethanol loses $27.4 million in Q2

SACRAMENTO, Calif. - Pacific Ethanol Inc., which continues to operate its plant at Boardman, still is losing money, although it put much of its operations into bankruptcy protection in May.

The Sacramento-based firm lost $27.4 million in the second quarter that ended June 30. That's compared with a loss of $8.3 million in the same quarter a year ago.

The Sacramento Business Journal reported the company's second-quarter revenue dropped to $70.1 million, from $198 million a year ago. That's mainly because of declining ethanol prices and lower ethanol output.

Prices for ethanol have fallen in the same period. Pacific Ethanol received an average of $1.75 per gallon in the second quarter compared to $2.55 a gallon at the same time last year.

The company's production fell nearly 50 percent in the three months ended June 30 compared to the same period in 2008, another business journal reported.

Pacific Ethanol has closed three of its four production plants, hoping to preserve cash.

In addition to the Boardman plant, the company has built ethanol plants in Madera and Stockton, Calif., and Burley, Idaho.

Company officials say they have enough cash until September, according to a Securities and Exchange Commission filing Aug. 7. Pacific Ethanol has used $12.3 million of a $20 million loan issued after its operations filed for Chapter 11 bankruptcy protection in mid-May. The company's marketing subsidiaries have not filed for bankruptcy.

Shares of Pacific Ethanol were selling at 37 to 38 cents early last week.

source: eastoregonian