BioFuel Energy makes profit but still in the red

Based in Denver, US, ethanol producer BioFuel Energy Corp. has had an increase in share purchases after it reported its first quarterly profit.

On Tuesday at midday trading BioFuel Energy’s shares rose by 15.6% to $3.56 (€2.64).

During 4Q of 2009 the company earned $6.8 million, with each share selling for 21 cents. During the same period in 2008 it lost $6.9 million.

However there is still some doubt as to whether the firm will be able to stay in business because of a $16.5 million debt in working capital loans looming in September this year. As a last resort the ethanol manufacturer is likely to try and postpone the debt’s maturity or raise capital from other sources.

BioFuel Energy’s annual report stated: ‘If current operating conditions do not improve, the company is unlikely to have sufficient liquidity to both repay these loans when they become due and maintain its operations.’

source: biofuels-news