Considering the current BP situation in Alaska and the violent activity in the Middle East ethanol is looking better and better everyday, IMHO. Here is some up to date info for those interested in ethanol investments.
Shares of the nation's largest ethanol refiner Archer Daniels Midland*(ADM) are up 68% this year.
The stock of pure-play ethanol refiner Pacific Ethanol (PEIX) leapt fourfold this year, before dropping back.
Initial public offerings by VeraSun Energy (VSE) and Aventine Renewable Energy (AVR) raised more than $700 million between them, while another ethanol refiner, Hawkeye Holdings, has registered for its debut.
Ethanol has provided good returns to ADM lately. In the fiscal year ended June, ADM's operating profits from corn bioproducts increased year-over-year from $259 million to $446 million.
In total, ADM earnings rose 26% from the prior fiscal year, to $1.3 billion, or $2 a share, on a 2% rise in revenues to $36.6 billion. ADM shares have also bubbled up on an ethanol premium. At their recent level of 42, the company's shares valued the business at $31.8 billion (including debt).
Trying to catch up in the U.S. ethanol market is ADM rival Bunge (BG), which is also the world's largest soy distributor. Since May the company has announced three joint ventures to produce ethanol in Mississippi, Illinois and Iowa — each in collaboration with farmer-owned companies.
Investors have gotten giddier over ethanol pure-play Pacific Ethanol. It started late last year, when the company disclosed an $84 million stake placed by an investment trust of Bill Gates. From January to May, shares in the company ran from about 10 bucks to 44.50, before reversing course to a recent 19.21. That leaves Pacific Ethanol with a stock-market capitalization of about $775 million.
After Archer Daniels, the largest U.S. ethanol producer is VeraSun. The company has two ethanol plants and is building three more, for a total production capacity of 560 million gallons a year — with the help of $230 million netted in a June initial public offering. In the 12 months ended March, VeraSun earned $1.3 million on sales of $302 million after about $22 million in interest on its $210 million in outstanding debt.
The company's shares have retraced from their post-IPO high of more than 30 bucks, to a recent 23.71 — but that still values the enterprise at almost $2 billion (including debt).
The U.S. now has 101 ethanol plants, with aggregate capacity to produce 4.8 billion gallons per year. By the middle of next year, capacity additions could lift the industry's output to seven billion, , according to the Renewable Fuels Association.
* my personal fav


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