Strong renewables production and improved results in the Trade segment boosted The Andersons net income attributable to the company to $27 million, equal to 80¢ per share on the common stock, for the third quarter ended Sept. 30, up from $9.7 million, or 28¢ per share, in the same quarter a year earlier.
“Overall, we are pleased with our third-quarter results given the lower commodity prices and reduced volatility in the ag markets,” said Bill Krueger, president and chief executive officer. “Renewables had a very strong quarter with increased ethanol production and improved yields in a period of good but softening crush margins. Trade results were significantly better than last year and include improved performance in our assets.”
The Trade segment recorded pretax income of $26 million and adjusted pretax income of $23 million for the quarter, which compared with pretax income of $8 million and adjusted pretax income of $5 million in the third quarter of 2023.
The company said that strong elevation margins and space income, primarily related to corn and wheat, helped results. Trade’s growing specialty ingredients business continued to benefit from recent growth investments. The merchandising business remained profitable with well-supplied commodity markets and limited volatility.
Trade’s third-quarter adjusted EBITDA was $38 million, which compared with $21 million in 2023.
The Renewables segment reported pretax income of $53 million and pretax income attributable to the company of $28 million in the third quarter. For the same period in 2023, the segment reported a pretax income of $47 million and pretax income attributable to the company of $26 million.
Margins on ethanol production improved year over year on significantly lower corn basis in the eastern plants, despite a reduction in ethanol board crush margins in the quarter.
Renewable diesel feedstock volumes continue to grow albeit with compressed margins on industry fundamentals. All four plants completed their semi-annual maintenance shutdowns in the third quarter. A favorable ethanol margin environment should continue, supported by exports, higher blending rates and continued lower corn basis levels in the east, The Andersons said.
Renewables had a third-quarter EBITDA of $65 million in 2024, up from $60 million in 2023.
The company continues to explore growth opportunities, including an $85 million investment for a 65% ownership interest in Skyland Grain, LLC, which operates a large grain and agronomy footprint across Southwest Kansas, Eastern Colorado and the Texas and Oklahoma panhandles.
“These assets extend our geographic footprint and support our existing merchandising presence in the region,” Krueger said. “In addition, we announced a significant investment in our leased facility at the port of Houston to improve our current grain export program and add capacity for storing and exporting soybean meal.”
Skyland, based in Ulysses, Kansas, has over 7,000 active co-op members across its grain and agronomy locations.
“We are excited to join forces with The Andersons,” said Pete Goetzmann, CEO of Skyland. “Their asset footprint is a strong complement to ours, offering our producers greater access to the best markets. As a leader in the grain trade with a proven track record, The Andersons merchandising expertise, combined with Skyland’s deep local market knowledge and customer base, creates a powerful synergy that aligns perfectly with our mission of connecting our producers to the world.”