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Biofuel Energy Q1 Net Loss Up

Posted on: Thursday, 15 May 2008, 09:01 CDT

Biofuel Energy, a development stage ethanol production company, has reported a net loss to common shareholders after minority interest of $1.78 million, or $0.12 per share, for the first quarter of 2008, compared to a net loss to common shareholders of $154,000, or $0.03 per share, for the same period of 2007.

The $1.8 million quarterly loss was due to $4.1 million of overhead and administrative costs, offset by $526,000 of interest income and the elimination of $1.8 million in minority interest. Costs reflected $2.5 million of compensation expense, including non-cash charges of $205,000 related to options and restricted stock grants.

During the first quarter, approximately $44 million was expended on the construction of the Wood River and Fairmont facilities. Through March 31, 2008, a total of $308 million had been spent on its construction.

Scott Pearce, president and CEO of Biofuel Energy, said: "Despite the obvious challenges presented by the current crush spread, we remain focused on completing our plants. After more than two years of planning and construction, it will be a challenging but exciting 60 days.

"While the industry's operating margins are under pressure due to high corn prices, we remain convinced of the important role ethanol will play in our country's supply of vehicle fuel, which should provide opportunities for the most efficient ethanol producers."

Source: Datamonitor

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