Pacific Ethanol Surges After Reporting Quarterly Profit of $107.8 Million

Pacific Ethanol Inc., a West Coast biofuel producer, surged in after-market trading after reporting a second-quarter profit of $107.8 million as a subsidiary emerged from bankruptcy protection.

Pacific gained 7.8 cents, or 15 percent, to 59.8 cents a share as of 5:09 p.m. in Nasdaq Stock Market composite trading. The shares had fallen 27 percent this year as of the close of regular trading today.

Net income was $1.43 a share compared with a loss of $28.2 million, or 49 cents, a year earlier, the Sacramento-based company said today in a statement. Sales rose 9.5 percent to $76.6 million from $70.1 million.

Pacific said it benefited from a $119.4 million non-cash gain from disposing of liabilities of $294.5 million, net of assets of $175.1 million from its balance sheet.

The company’s subsidiary, Pacific Ethanol Holding Co., and four ethanol plants emerged from bankruptcy on June 29. Under the reorganization plan, the ownership of the plants was transferred to its lenders and Pacific manages the distilleries for a fee.

source: bloomberg