Alto Ingredients Inc (ALTO) 2017 Q2 法說會逐字稿

Good morning, ladies and gentlemen and welcome to the Pacific Ethanol Second Quarter 2017 Financial Results Conference Call.

女士們，先生們，早上好，歡迎參加太平洋乙醇公司 2017 年第二季度財務業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員說明）作為提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Ms. Becky Herrick, LHA.

我現在想將會議轉交給您的主持人，LHA 的 Becky Herrick 女士。

Thank you, operator and thank you all for joining us today for the Pacific Ethanol Second Quarter 2017 Results Conference Call.

感謝運營商，感謝大家今天加入我們參加太平洋乙醇公司 2017 年第二季度業績電話會議。

On the call today are Neil Koehler, President and CEO; and Bryon McGregor, CFO.

今天的電話會議是總裁兼首席執行官 Neil Koehler；和首席財務官布賴恩·麥格雷戈。

Neil will begin with a review of business highlights.

尼爾將首先回顧業務亮點。

Bryon will provide a summary of the financial and operating results and then Neil will return to discuss Pacific Ethanol's outlook and open the call for questions.

Bryon 將提供財務和運營結果摘要，然後 Neil 將返回討論 Pacific Ethanol 的前景並開始提問。

Pacific Ethanol issued a press release yesterday providing details of the company's quarterly results.

Pacific Ethanol 昨天發布了一份新聞稿，提供了公司季度業績的詳細信息。

The company also prepared a presentation for today's call that's available on the company's website at pacificethanol.com.

該公司還為今天的電話會議準備了一份演示文稿，該演示文稿可在公司網站 pacificethanol.com 上找到。

If you have any questions, please call LHA at 415-433-3777.

如果您有任何問題，請致電 415-433-3777 聯繫 LHA。

A telephone replay of today's call will be available through August 10, the details of which are included in yesterday's press release.

今天電話的重播將持續到 8 月 10 日，詳細信息包含在昨天的新聞稿中。

A webcast replay will also be available at Pacific Ethanol's website.

Pacific Ethanol 的網站也將提供網絡重播。

Please note that information in this call speaks only as of today, August 3, and therefore, you're advised that time-sensitive information may no longer be accurate at the time of any replay.

請注意，本次電話會議中的信息僅適用於今天，即 8 月 3 日，因此，請注意，在任何重播時，時間敏感信息可能不再準確。

Please refer to the company's safe harbor statement on Slide 2 of the presentation available online, which says that some of the comments in this presentation constitute forward-looking statements and considerations that involve a number of risks and uncertainties.

請參閱公司在網上提供的幻燈片 2 上的安全港聲明，該聲明表示，本演示文稿中的一些評論構成前瞻性陳述和考慮因素，涉及許多風險和不確定性。

The actual future results of Pacific Ethanol could differ materially from those statements.

Pacific Ethanol 的實際未來結果可能與這些陳述存在重大差異。

Factors that could cause or contribute to such differences include, but are not limited to, events, risks and other factors previously and from time to time disclosed in Pacific Ethanol's filings with the SEC.

可能導致或促成此類差異的因素包括但不限於以前和不時在 Pacific Ethanol 向 SEC 提交的文件中披露的事件、風險和其他因素。

Except as required by applicable law, the company assumes no obligation to update any forward-looking statements.

除適用法律要求外，公司不承擔更新任何前瞻性陳述的義務。

In management's prepared remarks, non-GAAP measures will be referenced.

在管理層準備好的評論中，將引用非公認會計原則措施。

Management uses these non-GAAP measures to monitor the financial performance of operations and believes these measures will assist investors in assessing the company's performance for the periods being reported.

管理層使用這些非公認會計原則措施來監控運營的財務業績，並相信這些措施將幫助投資者評估公司在報告期間的業績。

The company defines adjusted EBITDA as unaudited net income or loss attributed to Pacific Ethanol before interest expense, provision or benefit for income taxes, asset impairments, purchase accounting adjustments, fair value adjustments and depreciation and amortization expense.

該公司將調整後的 EBITDA 定義為在利息費用、所得稅準備金或福利、資產減值、採購會計調整、公允價值調整以及折舊和攤銷費用之前歸屬於太平洋乙醇的未經審計的淨收入或損失。

To support the company's review of non-GAAP information later in this call, a reconciling table is included in yesterday's press release.

為了支持公司稍後在本次電話會議中對非公認會計原則信息的審查，昨天的新聞稿中包含了一個核對錶。

It's now my pleasure to introduce Neil Koehler, President and CEO.

現在我很高興介紹總裁兼首席執行官 Neil Koehler。

Neil?

尼爾？

Thank you, Becky and thank you to everyone joining the call today.

謝謝你，貝基，感謝今天加入電話會議的每個人。

For the second quarter, we recorded net sales of $405 million, gross profit of $1.7 million, a net loss of $9.2 million, and adjusted EBITDA of a positive $2.6 million.

第二季度，我們錄得淨銷售額 4.05 億美元，毛利潤 170 萬美元，淨虧損 920 萬美元，調整後 EBITDA 為正 260 萬美元。

While Q2 is typically a seasonally stronger quarter this year, ethanol margins were negatively impacted by elevated production volumes and high inventories across the industry.

雖然今年第二季度通常是季節性較強的季度，但乙醇利潤率受到整個行業產量增加和高庫存的負面影響。

We currently are seeing an improved spread between ethanol and corn and better plant production margins when compared to the second quarter.

與第二季度相比，我們目前看到乙醇和玉米之間的價差有所改善，植物生產利潤率有所提高。

Gasoline demand has picked up with summer driving is now running at levels at or above last year.

汽油需求隨著夏季駕駛而回升，目前已達到或高於去年的水平。

In fact, gasoline demand last week hit a record high as measured by the EIA.

事實上，上週汽油需求達到了 EIA 衡量的歷史新高。

Blend days of supply have been moving lower supporting a better ethanol supply and demand balance.

供應的混合天數一直在下降，從而支持更好的乙醇供需平衡。

Also according to the EIA, ethanol inventories last week fell to the lowest level since the first week of this year.

同樣根據EIA，上週乙醇庫存降至今年第一周以來的最低水平。

We expect demand to remain strong and continue to grow as domestic markets blend above 10% and as international markets grow to meet carbon targets and demand for octane.

我們預計需求將保持強勁並繼續增長，因為國內市場的混合率超過 10%，並且隨著國際市場的增長以滿足碳目標和對辛烷的需求。

Across all our facilities, we continue to implement initiatives aimed at increasing operating efficiencies, improving reliability, enhancing yields, improving our carbon scores, and reducing operating costs.

在我們所有的設施中，我們繼續實施旨在提高運營效率、提高可靠性、提高產量、提高碳得分和降低運營成本的舉措。

Our 3.5 megawatt cogeneration system at our Stockton facility is on track to reach full capacity by the end of the third quarter.

我們斯托克頓工廠的 3.5 兆瓦熱電聯產系統有望在第三季度末達到滿負荷運行。

The cogeneration system will deliver steam and electricity into the plant while lowering emissions and we anticipate it will reduce our annual energy cost by up to $4 million.

熱電聯產系統將向工廠輸送蒸汽和電力，同時降低排放，我們預計它將使我們的年度能源成本降低多達 400 萬美元。

The Whitefox industrial scale membrane system at our Madera plant is operating very well and we expect a positive impact in energy savings, operating performance, and in our carbon intensity score.

我們馬德拉工廠的 Whitefox 工業規模膜系統運行良好，我們預計對節能、運營績效和碳強度評分產生積極影響。

We estimate the energy savings will include a 5% reduction in natural gas costs at the plant.

我們估計節能將包括工廠天然氣成本降低 5%。

Overall, we estimate the energy savings and carbon premium combined will total approximately $350,000 annually at current markets.

總體而言，我們估計當前市場每年的節能和碳溢價總計約為 350,000 美元。

The membrane system also improves operations during hot weather, yielding greater output and it contributes to lowering our carbon intensity score.

膜系統還可以改善炎熱天氣下的操作，產生更大的產量，並有助於降低我們的碳強度得分。

Once we have 3 months of consistent operating history, we will be in a position to submit for a new pathway from the California Air Resources Board and evaluate expanding the membrane system to our other Pacific Ethanol plants.

一旦我們擁有 3 個月的一致運營歷史，我們將能夠向加利福尼亞空氣資源委員會提交新途徑，並評估將膜系統擴展到我們的其他太平洋乙醇工廠。

In Stockton, we continue to produce cellulosic ethanol and we are on track to begin commercial operations of cellulosic ethanol production at Madera in the second half of the year.

在斯托克頓，我們繼續生產纖維素乙醇，我們有望在下半年開始在馬德拉進行纖維素乙醇生產的商業運營。

We have completed baseline testing and once the equipment is installed this month, we will do more advanced testing by introducing the proper enzymes into the system.

我們已經完成了基線測試，一旦本月安裝了設備，我們將通過將適當的酶引入系統來進行更高級的測試。

Following that, we will file for approval from the EPA for the production of D3 RINS.

之後，我們將向 EPA 申請批准生產 D3 RINS。

We are also in a process of filing an application with the EPA for our Magic Valley facility to be eligible for producing cellulosic ethanol and we expect approval by the end of the year.

我們還在向 EPA 提交申請，要求我們的 Magic Valley 工廠有資格生產纖維素乙醇，我們預計將在今年年底前獲得批准。

We remain on schedule to begin full-scale operations of our 5 megawatt solar power system at Madera in early 2018.

我們將按計劃於 2018 年初在馬德拉開始全面運營我們的 5 兆瓦太陽能發電系統。

The equipment has been procured and construction is underway.

設備已購置，正在建設中。

The system is expected to reduce our utility costs by approximately $1 million annually and lower our carbon score.

該系統預計每年可將我們的公用事業成本降低約 100 萬美元，並降低我們的碳分數。

At our Aurora and Nebraska facilities, we have improved production economics and plant reliability through equipment upgrades to our boilers and dryers.

在我們的奧羅拉和內布拉斯加州工廠，我們通過對鍋爐和烘乾機的設備升級提高了生產經濟性和工廠可靠性。

Also in Aurora, we received DSP approvals for both facilities, which allows us to ship undenatured ethanol for the export market.

同樣在 Aurora，我們的兩個設施都獲得了 DSP 批准，這使我們能夠為出口市場運送未變性乙醇。

On July 3, we closed our acquisition of Illinois Corn Processing or ICP, which is a 90 million gallon per year dry mill facility located adjacent to our existing facilities in Pekin.

7 月 3 日，我們完成了對伊利諾伊玉米加工或 ICP 的收購，這是一個每年 9000 萬加侖的干磨廠，毗鄰我們在北京的現有設施。

We now have 9 production facilities with combined annual production capacity of 605 million gallons.

我們現在擁有 9 個生產設施，年總產能為 6.05 億加侖。

ICP expands and diversifies our production footprint, improves profitability, and presents significant domestic and international growth opportunities.

ICP 擴大和多樣化了我們的生產足跡，提高了盈利能力，並提供了重要的國內和國際增長機會。

The acquisition adds specialty high-quality alcohol products to our production, which diversifies our revenue with a less volatile and more predictable revenue stream.

此次收購為我們的生產增加了特種優質酒精產品，從而使我們的收入多樣化，收入來源波動性更小、更可預測。

It also adds to our profitability as the high-value beverage and industrial grade alcohol products are priced at a premium to fuel ethanol.

它還增加了我們的盈利能力，因為高價值飲料和工業級酒精產品的價格高於燃料乙醇。

The consolidation of the ICP facility with our 2 Pekin, Illinois plants provides us with a combined operating capacity of 250 million gallons per year at that location.

ICP 設施與我們在伊利諾伊州北京的 2 家工廠合併後，我們在該地點的綜合運營能力為每年 2.5 億加侖。

We have identified some early benefits to the consolidation of our Pekin facilities and we expect to achieve cost savings estimated at $4.5 million within the next 12 months through a combination of synergies including SG&A, logistics, and other cost advantages.

我們已經確定了整合北京設施的一些早期好處，我們預計通過包括 SG&A、物流和其他成本優勢在內的協同效應，在未來 12 個月內實現成本節約估計為 450 萬美元。

As we are still early in the integration process, we plan to provide an update on cost synergies on the third quarter conference call when ICP's financials are consolidated and we have improved visibility.

由於我們仍處於整合過程的早期階段，我們計劃在第三季度電話會議上提供有關成本協同效應的最新信息，屆時 ICP 的財務狀況將得到整合併且我們提高了知名度。

The transaction is immediately accretive to the company as demonstrated through the pro forma in the Form 8-K/A filed this Monday.

正如本週一提交的 8-K/A 表格中的備考所示，該交易立即為公司增值。

In addition, we have already gained some of the expected synergies and have a plant that performs well versus current industry production margins.

此外，我們已經獲得了一些預期的協同效應，並擁有一家與當前行業生產利潤率相比表現良好的工廠。

We have also identified and are evaluating opportunities to improve yields, increase plant capacity utilization, and enhance ICP's production processes through additional capital investments both in the near and long term.

我們還發現並正在評估通過近期和長期的額外資本投資來提高產量、提高工廠產能利用率和增強 ICP 生產流程的機會。

We look forward to sharing more details with you over the coming months.

我們期待在未來幾個月與您分享更多細節。

On the regulatory front, last week, a U.S. appeals court ruled that the EPA fundamentally misinterpreted its authority under the national Renewable Fuel Standard or RFS to lower the federal biofuel mandates blending volumes.

在監管方面，上週，美國上訴法院裁定 EPA 從根本上誤解了其在國家可再生燃料標准或 RFS 下的權力，以降低聯邦生物燃料要求的混合量。

In the decision, the judge vacated the EPA's decision to reduce total renewable fuel volume requirements for 2016 and sent the rule back to the EPA for further consideration.

在該決定中，法官撤銷了 EPA 減少 2016 年可再生燃料總量要求的決定，並將該規則送回 EPA 以供進一步考慮。

While the implications of this action remain unclear, this is a significant victory for the ethanol industry, the RFS program, and consumers.

雖然這一行動的影響尚不清楚，但對於乙醇行業、RFS 計劃和消費者來說，這是一次重大勝利。

In addition, last month, the EPA put out its proposed 2018 volume obligations for the RFS, which it expects to finalize this November.

此外，上個月，美國環保署提出了對 RFS 提出的 2018 年數量義務，預計將於今年 11 月完成。

The proposal is to keep the conventional biofuel requirement at 15 billion gallons, the same in 2018, which is a positive support for higher level ethanol blends.

該提議是將傳統生物燃料的需求保持在 150 億加侖，與 2018 年相同，這是對更高水平乙醇混合物的積極支持。

However, the EPA proposed [small] decreases in the cellulosic biofuel and the advanced biofuel requirements compared to 2017.

然而，與 2017 年相比，EPA 提議 [small] 減少纖維素生物燃料和先進生物燃料的需求。

Over the past several years, Pacific Ethanol has been investing in several advanced biofuels initiatives to help meet the growing need for these innovative low carbon fuels.

在過去幾年中，Pacific Ethanol 一直在投資多項先進的生物燃料計劃，以幫助滿足對這些創新低碳燃料日益增長的需求。

Together with other producers and stakeholders in the industry, we will be communicating with the EPA during the public comment period to support a final rule that sends the appropriate market signals to drive new investments into these advanced biofuels.

我們將與該行業的其他生產商和利益相關者一起，在公眾意見徵詢期內與 EPA 進行溝通，以支持最終規則，該規則發出適當的市場信號，以推動對這些先進生物燃料的新投資。

The availability of E15 continues to expand across the country due to the increased demand for high-quality, affordable, environmentally friendly transportation fuel.

由於對高質量、負擔得起、環保的運輸燃料的需求增加，E15 的可用性在全國范圍內繼續擴大。

Nearly 900 retail stations in 29 states sell E15 representing a 200% increase over 2015.

29 個州的近 900 個零售站銷售 E15，比 2015 年增長 200%。

E15 is expected to be at almost 2,000 locations in 2018 providing a strong case for year-on-year increases in the demand for ethanol.

E15 預計將在 2018 年出現在近 2,000 個地點，為乙醇需求的同比增長提供了強有力的理由。

With that, I'll turn the call over to our CFO, Bryon McGregor for a financial review.

有了這個，我將把電話轉給我們的首席財務官布賴恩麥格雷戈進行財務審查。

Thank you, Neil.

謝謝你，尼爾。

Before I begin, I'd like to note that as our acquisition of ICP closed on July 3, we will consolidate its financials beginning with our third quarter results.

在開始之前，我想指出，隨著我們對 ICP 的收購於 7 月 3 日結束，我們將從第三季度業績開始整合其財務狀況。

For the second quarter 2017 compared to the second quarter of 2016, net sales were $405 million compared to $423 million.

2017 年第二季度與 2016 年第二季度相比，淨銷售額為 4.05 億美元，而 4.23 億美元。

Cost of goods sold were $404 million compared to $405 million.

商品銷售成本為 4.04 億美元，而 4.05 億美元。

Gross profit was $1.7 million compared to $17.7 million in the second quarter of 2016 which reflects a decrease in production margins compared to the prior year.

毛利潤為 170 萬美元，而 2016 年第二季度為 1,770 萬美元，這反映了生產利潤率與去年相比有所下降。

SG&A expenses were $8.8 million compared to $6.1 million.

SG&A 費用為 880 萬美元，而 610 萬美元。

The year-over-year increase in SG&A was primarily attributable to higher professional expenses associated with the ICP acquisition as well as increased benefits and non-cash compensation adjustments.

SG&A 的同比增長主要是由於與 ICP 收購相關的專業費用增加以及福利和非現金薪酬調整增加。

We expect acquisition cost to also have some impact on SG&A in the third quarter.

我們預計收購成本也會對第三季度的 SG&A 產生一些影響。

Interest expense was $2.7 million compared to $6.5 million.

與 650 萬美元相比，利息支出為 270 萬美元。

Net loss available to common stockholders was $9.2 million or $0.

普通股股東可獲得的淨虧損為 920 萬美元或 0 美元。

22 per share.

每股22。

This compares to net income of $4.7 million or $0.11 per share in the year ago period.

相比之下，去年同期的淨收入為 470 萬美元或每股 0.11 美元。

Adjusted EBITDA was $2.6 million compared to $20.4 million in the year ago period.

調整後的 EBITDA 為 260 萬美元，而去年同期為 2040 萬美元。

For the six months of 2017, we increased our first half 2017 net sales by 3% to $792 million and we dramatically reduced our interest expense to $5.3 million in the first half of 2017 compared to $12.8 million in the same period last year.

在 2017 年的六個月裡，我們將 2017 年上半年的淨銷售額增加了 3% 至 7.92 億美元，我們將 2017 年上半年的利息支出大幅降低至 530 萬美元，而去年同期為 1280 萬美元。

This is primarily due to the refinancing of debt in December 2016, which provided significantly lower interest rates.

這主要是由於 2016 年 12 月的債務再融資，這提供了顯著降低的利率。

Now turning to our balance sheet, cash and cash equivalents were $91.4 million at June 30, 2017 compared to $68.6 million at December 31, 2016.

現在轉向我們的資產負債表，截至 2017 年 6 月 30 日，現金和現金等價物為 9140 萬美元，而 2016 年 12 月 31 日為 6860 萬美元。

As part of our acquisition of ICP, we paid $30 million in cash as the acquisition closed July, 3, this will be reflected in our cash position at September 30, 2017.

作為我們收購 ICP 的一部分，我們在收購於 7 月 3 日結束時支付了 3000 萬美元現金，這將反映在我們 2017 年 9 月 30 日的現金狀況中。

As part of the purchase price of the acquisition, we issued approximately $46.7 million in secured promissory notes.

作為收購價格的一部分，我們發行了約 4670 萬美元的有擔保本票。

As we noted at that time, our intention is to refinance these seller notes in the near future.

正如我們當時指出的那樣，我們的意圖是在不久的將來為這些賣方票據再融資。

We are working with CoBank to secure long term financing in a similar amount which if consummated will have terms similar to the existing non-recourse loan at the company's Pekin facilities.

我們正在與 CoBank 合作，以確保獲得類似金額的長期融資，如果完成，其條款將類似於公司北京設施現有的無追索權貸款。

During the second quarter, we issued additional senior secured notes for approximately $14 million bringing the note total to approximately $69 million with no material changes to existing terms.

在第二季度，我們發行了約 1400 萬美元的額外優先擔保票據，使票據總額達到約 6900 萬美元，現有條款沒有重大變化。

So far in the third quarter we are focused on maintaining the strength of our balance sheet.

到目前為止，在第三季度，我們專注於保持資產負債表的實力。

We have closed an agreement to expand our borrowing capacity of Kinergy credit facilities with Wells Fargo from $85 million to $100 million, reduce the cost of the facility and extend the maturity date for an additional 2 years.

我們與富國銀行簽署了一項協議，將我們對 Kinergy 信貸額度的借貸能力從 8500 萬美元擴大到 1 億美元，降低貸款成本並將到期日再延長 2 年。

Now I'll provide an update to our capital expenditure activities and expectations.

現在，我將更新我們的資本支出活動和預期。

For the second quarter of 2017, our capital expenditures totaled $2.1 million primarily related to plant improvement initiatives.

2017 年第二季度，我們的資本支出總額為 210 萬美元，主要與工廠改進計劃有關。

This brings our 6 month total to $6.2 million.

這使我們 6 個月的總額達到 620 萬美元。

Given the recent weakness in the industry production margins, our intention to operate conservatively, we are deferring $20 million of capital expenditures for the second half of 2017 from the $46 million in guidance we provided last quarter.

鑑於最近行業生產利潤率疲軟，我們打算保守經營，我們將 2017 年下半年的 2000 萬美元資本支出從我們上季度提供的 4600 萬美元的指導中推遲。

Included in the revised plan is a $16 million in previously announced projects including Stockton cogeneration, the Madera cellulosic initiative and solar projects.

修訂後的計劃中包括之前宣布的 1600 萬美元的項目，包括斯托克頓熱電聯產、馬德拉縴維素倡議和太陽能項目。

The remainder of the uncommitted funds represent investment opportunities in projects that produce the highest near term return for the company and its shareholders.

剩餘的未承諾資金代表了對公司及其股東產生最高近期回報的項目的投資機會。

It is important to note that this amount does not yet include potential capital improvement projected in ICP.

需要注意的是，這一數額尚未包括 ICP 中預計的潛在資本改進。

The information regarding these projects will be provided over the coming months.

有關這些項目的信息將在未來幾個月內提供。

With that, I'll turn the call back to Neil.

有了這個，我會把電話轉回給尼爾。

Thanks, Bryon.

謝謝，布賴恩。

We remain encouraged by the long term demand for ethanol as supported by the growing need for high octane and low carbon renewable fuels in both domestic and international markets.

由於國內和國際市場對高辛烷值和低碳可再生燃料的需求不斷增長，我們仍然對乙醇的長期需求感到鼓舞。

While volatility in the ethanol markets persist, we are continuing to make operational and strategic improvements that lessen our exposure to such factors and position us to gain share in the renewable fuels market.

儘管乙醇市場持續波動，但我們仍在繼續進行運營和戰略改進，以減少我們對這些因素的影響，並使我們在可再生燃料市場中獲得份額。

We are focused on increasing operating efficiencies, improving plant reliability, enhancing yields, improving our carbon scores, and reducing operating costs.

我們專注於提高運營效率、提高工廠可靠性、提高產量、提高碳得分和降低運營成本。

Our acquisition of ICP in July provides multiple cost synergies, further diversifies our production with high-quality premium priced alcohol products representing a less volatile revenue source, and it increases our opportunities and access to export markets.

我們在 7 月收購 ICP 提供了多種成本協同效應，進一步使我們的生產多樣化，提供高品質、價格高的酒精產品，代表了波動較小的收入來源，並增加了我們的機會和進入出口市場的機會。

Amanda, with that, we are ready to begin the Q&A session.

阿曼達，我們準備好開始問答環節了。

Thank you.

謝謝你。

(Operator Instructions) Your first question comes from the line of Eric Stine from Craig-Hallum.

（操作員說明）您的第一個問題來自 Craig-Hallum 的 Eric Stine。

I was just wondering if we could just start on 3Q and obviously I know that these -- this can change pretty quickly, but you mentioned starting to see it in the EIA data.

我只是想知道我們是否可以從第三季度開始，顯然我知道這些 - 這可以很快改變，但你提到開始在 EIA 數據中看到它。

Just in terms of conditions here going forward, I mean is this a trend that you see continuing given seasonal plant shutdowns and also have heard some industry participants talking about shifting production to industrial grade?

就未來的情況而言，我的意思是，鑑於季節性工廠停工，您是否看到這種趨勢仍在繼續，並且還聽到一些行業參與者談論將生產轉移到工業級？

Yes I think the shift to industrial grade is -- there is -- some of that's happening.

是的，我認為向工業級的轉變是——有——其中一些正在發生。

Obviously we acquired some of that.

顯然我們獲得了一些。

I think that's less of a factor in the overall supply/demand, but what we are seeing is strong gasoline demand.

我認為這對整體供需影響較小，但我們看到的是強勁的汽油需求。

We really worked off an overhang.

我們真的解決了懸垂問題。

The problem with Q2 was that we left Q1 with quite a bit of inventory because gasoline demand in Q1 was fairly anemic relative to the year before running about 2.5% behind and now we're running at levels that are above a year earlier.

第二季度的問題在於，我們在第一季度留下了相當多的庫存，因為與去年相比，第一季度的汽油需求相當低迷，落後約 2.5%，而現在我們的運行水平高於一年前。

So strong domestic demand, strong exports, decline in inventories getting down to days of supply that are pretty well correlated with better margins and we are seeing that.

如此強勁的國內需求、強勁的出口、庫存下降到供應天數，這與更高的利潤率密切相關，我們正在看到這一點。

We do anticipate that that should continue to be the case.

我們確實預計情況將繼續如此。

We do have a little less exports in Q3.

我們在第三季度的出口確實有所減少。

So that would be one negative, but they should come back stronger in Q4, but we believe that the strong gasoline demand will pick up the slack here in the summer months.

所以這將是一個負面因素，但他們應該會在第四季度回升，但我們認為強勁的汽油需求將在夏季填補這裡的空缺。

And we also have stable corn prices.

我們也有穩定的玉米價格。

That was a bit of a factor as well in Q2 as these corn markets trade on the weather and there was concern about the heat and some areas in particular Dakotas with declining growth and yields.

這也是第二季度的一個因素，因為這些玉米市場因天氣而交易，人們擔心高溫，尤其是達科他州的一些地區，其增長和單產下降。

So we saw some spikes in corn prices that -- where ethanol didn't really follow.

所以我們看到玉米價格出現了一些飆升——乙醇並沒有真正跟隨。

We're seeing a pretty stable corn price.

我們看到玉米價格相當穩定。

It's become clear that we will have a -- just a fine crop, maybe slightly lower yields than the USDA is predicting, but still a good strong crop.

很明顯，我們將有一個好收成，產量可能略低於美國農業部的預測，但仍然是一個很好的強收成。

So we are constructive on the second half of the year, certainly more so than the first half.

所以我們對下半年是建設性的，肯定比上半年更有建設性。

Got it and maybe just sticking with the demand side.

明白了，也許只是堅持需求方。

First, a lot of noise out of Brazil in potential for either tariffs or quotas.

首先，來自巴西的很多關於關稅或配額的噪音。

I mean I know that, well, I mean I'm just curious what your thoughts are there and what you think a potential outcome is and I know that they're targeting maybe a month from now when that decision is made.

我的意思是我知道，嗯，我的意思是我只是好奇你的想法是什麼，你認為潛在的結果是什麼，我知道他們的目標可能是從現在起一個月後做出決定。

So any thoughts there is helpful.

因此，任何想法都是有幫助的。

Well, they've deferred that decision twice.

好吧，他們已經兩次推遲了這個決定。

I don't really think Brazil wants to instigate a trade war with the United States and that would be a way to do it.

我真的不認為巴西想挑起與美國的貿易戰，這將是一種方式。

So there is that factor and the other factor is that Brazil continues to be on an annual basis structurally short of ethanol and they need the gallons.

所以有這個因素，另一個因素是巴西每年在結構上繼續缺乏乙醇，他們需要加侖。

So it may impact the economics to some degree.

因此，它可能會在一定程度上影響經濟。

It may shift trade flows, but they still need the gallons and that becomes a factor in the overall global supply and demand.

它可能會改變貿易流動，但他們仍然需要加侖，這成為全球整體供需的一個因素。

So we continue to see Brazil as a strong market for ethanol.

因此，我們繼續將巴西視為乙醇的強勁市場。

The other factor is that they have the swing between sugar and ethanol.

另一個因素是它們在糖和乙醇之間搖擺不定。

Sugar prices were declining in and around the $0.13 a pound and back now close to $0.15 a pound.

糖價在每磅 0.13 美元附近下跌，現在回落至每磅 0.15 美元附近。

So that's another factor supporting the shift to as much sugar production as possible in Brazil and impacting their levels of ethanol production, which creates even more of the demand for importing our ethanol.

因此，這是支持巴西盡可能多地生產糖並影響其乙醇生產水平的另一個因素，這對進口我們的乙醇產生了更多的需求。

Right, okay.

對，好吧。

Last one for me.

最後一個給我。

Just coming back to corn, any color you can give on basis.

剛回到玉米，你可以在基礎上給出任何顏色。

I know that corn had been touching that $4 range for a bit, has pulled back, but hearing that in certain parts of the country, you can get corn well below the board price, So just how -- what you're seeing from basis here in 3Q and is that something that you may lock in?

我知道玉米曾一度觸及 4 美元的區間，已經回落，但聽說在該國某些地區，你可以買到遠低於板價的玉米，所以你從基礎上看到了什麼在 3Q 中，這是您可以鎖定的東西嗎？

Yes certainly there is a bit of an inverse relationship between the board and the basis.

是的，當然，董事會和基礎之間存在一些反比關係。

So when the board goes up, you tend to see farmers stepping out and selling and that does create an opportunity to lock in basis and we have locked in some basis for Q3 that is better than current market.

因此，當董事會上漲時，您往往會看到農民退出並出售，這確實創造了鎖定基礎的機會，我們已經為第三季度鎖定了一些比當前市場更好的基礎。

So that is encouraging.

所以這是令人鼓舞的。

Basis generally has been fairly friendly towards ethanol producers particularly in Illinois, we've seen some of the lowest basis than we've seen in years.

基差總體上對乙醇生產商相當友好，尤其是在伊利諾伊州，我們已經看到了一些比多年來最低的基差。

Typically, that market trades closer to option price and we've seen numbers that have been closer to $0.10, even $0.12, $0.14 under the board.

通常，該市場的交易價格更接近期權價格，我們已經看到董事會下的數字接近 0.10 美元，甚至 0.12 美元，0.14 美元。

We also are seeing good supplies going west and have been able to lock in a decent basis for our Western plants.

我們還看到西部供應良好，並且能夠為我們的西部工廠鎖定良好的基礎。

So it's a pretty good position that we're in corn and looking at a good crop with a good strong carry out going into next year.

所以這是一個非常好的位置，我們在玉米中尋找一個很好的收成，並在明年有一個很好的強勁執行。

Your next question comes from the line of Craig Irwin from Roth Capital Management.

您的下一個問題來自 Roth Capital Management 的 Craig Irwin。

So Neil, I was really happy to hear you mentioned the D.C. Circuit Court case -- court decision from last Friday.

所以尼爾，我很高興聽到你提到華盛頓巡迴法院的案件——上週五的法院判決。

Earlier this week, I was at the EPA hearing in D.C. and a few people politely reminded EPA, hey, you guys broke the law -- your position with RFA gives you a really good view sort of on the broader strategy of the ethanol industry and a lot of people really look to you for your leadership as far as how to approach some of these complicated problems.

本週早些時候，我參加了華盛頓特區的 EPA 聽證會，一些人禮貌地提醒 EPA，嘿，你們違反了法律——你們在 RFA 的職位讓你們對乙醇行業的更廣泛戰略有了一個非常好的看法，並且就如何解決其中一些複雜問題而言，很多人都非常期待您的領導能力。

So the arguments on the other side haven't changed, they are all tired and old and we only need to look at Brazil to see that 27.5% ethanol isn't going to cause all the gas tanks out there to rot and all the cars to fail on the road.

所以另一方的論點沒有改變，他們都累了，老了，我們只需要看看巴西就知道 27.5% 的乙醇不會導致那裡所有的油箱和所有的汽車都腐爛在路上失敗。

So can you maybe describe for us the path forward after the Circuit Court decision, what it would look like as far as industry actions to make sure EPA follows the law, the way that Congress wrote it and that we see RVOs for the whole biofuels industry that are more in line with the spirit of the law rather than what we've seen under the Obama administration over the last number of years?

那麼，您能否為我們描述一下巡迴法院裁決後的前進道路、確保 EPA 遵守法律的行業行動、國會編寫法律的方式以及我們看到整個生物燃料行業的 RVO這更符合法律的精神，而不是我們在過去幾年里奧巴馬政府所看到的？

Sure.

當然。

Well it's really up to the EPA to take the vacating of the 2016 and decide what to do with it.

嗯，這真的取決於 EPA 來騰出 2016 年並決定如何處理它。

We think that a very straightforward path would be for them to go back and add the 500 million gallons back to the 2016 RVO and require and maybe give refiners a little extra time to retire an additional 500 million [RINs].

我們認為，一條非常直接的路徑是讓他們返回並將 5 億加侖添加回 2016 年的 RVO，並要求並且可能給煉油廠一點額外的時間來淘汰額外的 5 億 [RIN]。

So we -- by law, you're right, they did break the law and the court of appeals determined that and the industry and the market needs those 500 million gallons back in one way, shape or form.

所以我們——根據法律，你是對的，他們確實違反了法律，上訴法院裁定，行業和市場需要以一種方式、形狀或形式收回這 5 億加侖。

They could appeal it to the Supreme Court.

他們可以上訴到最高法院。

I don't expect that they will do that because I think there is a very good straightforward path that is not draconian, is not going to be disruptive to markets, but will -- which is why this is a very large victory for the industry, will absolutely help accelerate the introduction of higher level blends.

我不認為他們會這樣做，因為我認為有一條非常好的直截了當的道路，它不是嚴厲的，不會對市場造成破壞，但會——這就是為什麼這對行業來說是一個巨大的勝利，絕對有助於加速引入更高水平的混合物。

We've already seen a reaction in the RIN market, RIN prices have been moving up since that decision and it provides that much more incentive to buy that gallon of ethanol that has a RIN attached, that actually sells with that RIN attached at a price that's at or below the price of gasoline, take advantage of the octane, have a cheaper product as E15 on the street than going out and having to buy $0.85, $0.90 RIN.

我們已經看到 RIN 市場的反應，自該決定以來，RIN 價格一直在上漲，這為購買附有 RIN 的那加侖乙醇提供了更多的動力，實際上以附加 RIN 的價格出售這等於或低於汽油的價格，利用辛烷值，在街上擁有比 E15 更便宜的產品，而不是出去購買 0.85 美元，0.90 美元的 RIN。

So we are seeing the infrastructure in place.

所以我們看到基礎設施到位。

We continue to see resistance from the major oil companies, but we have a lot of support from the large chains of independents that are starting to implement the higher blends and we think that this case will be absolutely catalytic in helping accelerate that development and also very importantly just takes away any future threat that the EPA could come back and again use the very flimsy claim of now not legal claim that inadequate infrastructure is tantamount to inadequate supply and invoking the supply waiver under the RFS.

我們繼續看到主要石油公司的阻力，但我們得到了開始實施更高混合物的大型獨立連鎖店的大力支持，我們認為這個案例將絕對催化加速發展，也非常重要的是，只是消除了任何未來的威脅，即 EPA 可能會再次使用非常站不住腳的說法，即現在不合法的說法，即基礎設施不足等於供應不足，並援引 RFS 下的供應豁免。

They can no longer do that.

他們不能再那樣做了。

That's been made very clear.

這已經說得很清楚了。

So we do see it as a very positive development and as an industry, we will, to your point advocate very strongly and did in Washington as you heard from all areas, the biofuels industry, it was a very united voice from all biofuel participants.

因此，我們確實認為這是一個非常積極的發展，作為一個行業，我們將非常強烈地倡導你的觀點，並且正如你在華盛頓所做的那樣，正如你從生物燃料行業的各個領域聽到的那樣，這是來自所有生物燃料參與者的非常一致的聲音。

It's so great that you -- please follow the law, do what it's supposed to do, which was to expand markets for clean burning biofuels.

你太棒了——請遵守法律，做它應該做的事情，那就是擴大清潔燃燒生物燃料的市場。

Great that you're protecting the conventional number, but you need to increase the advanced biofuel number cause we are ready and able to produce more advanced biofuels than the current RVO proposal is suggesting.

很好，您正在保護傳統數量，但您需要增加先進生物燃料數量，因為我們已經準備好並且能夠生產比當前 RVO 提案建議的更先進的生物燃料。

Thank you for that.

謝謝你。

Second question I wanted to ask is about -- a little bit about geography.

我想問的第二個問題是關於地理的。

So as one of the primary suppliers of ethanol into the State of California, you have a neighbor that's pretty interesting.

因此，作為加利福尼亞州乙醇的主要供應商之一，您有一個非常有趣的鄰居。

Mexico seems to be taking the right actions to move towards 10% ethanol blend rates with the approval of a 10% blend just back a number of weeks ago.

墨西哥似乎正在採取正確的行動，朝著 10% 的乙醇混合率邁進，幾週前批准了 10% 的乙醇混合率。

How do you see this impacting ethanol demand in California?

您如何看待這對加州乙醇需求的影響？

I know there's complexities in there because of LCFS scores and what people are choosing to deliver into the state, but if Mexico was to take 300 million gallons to 500 million gallons more over the next few years, how would you see this impacting development of demand across the State of California?

我知道由於 LCFS 分數以及人們選擇向該州運送什麼，其中存在復雜性，但如果墨西哥在未來幾年內增加 3 億至 5 億加侖，您會如何看待這種影響需求的發展橫跨加利福尼亞州？

I think the real impact is just the overall global domestic and global supply demand.

我認為真正的影響只是全球國內和全球的整體供應需求。

I mean clearly in the U.S. until we get past the 10% and see wide adoption of higher blends and continue to see growth in international markets, we have a little bit of a supply/demand concern given that the industry continues to increase its capacity to create and even some new plants are now being built.

我的意思很清楚，在美國，直到我們超過 10% 並看到廣泛採用更高的混合物並繼續看到國際市場的增長，鑑於該行業繼續增加其產能，我們有一點供需問題創造，甚至一些新工廠正在建設中。

So we need new markets, we need them domestically and internationally and Mexico, it's one of the bright spots.

所以我們需要新的市場，我們在國內和國際上都需要它們，還有墨西哥，這是亮點之一。

It could be as much as 1 billion gallon market if 10% ethanol were to be in all the blends.

如果所有混合物中都含有 10% 的乙醇，那麼市場可能會達到 10 億加侖。

I think your 300 million to 400 million right now is a reasonable target because the MTB crowd down there is still hanging on to their market share and have at least for the time being locked ethanol out of the large urban markets, but the early adopting areas outside of those do represent that 300 million, 400 million gallons and many of them are closer to the U.S. border.

我認為你現在的 3 億到 4 億是一個合理的目標，因為那裡的 MTB 人群仍然堅持他們的市場份額，並且至少暫時將乙醇鎖定在大型城市市場之外，但早期採用的地區除此之外，確實代表了 3 億、4 億加侖，其中許多離美國邊境更近。

California specifically, while we continue to have the LCFS which we anticipate be well beyond 2020, is going to continue to be more of a specialty market.

特別是加利福尼亞州，雖然我們預計將在 2020 年之後繼續擁有 LCFS，但將繼續成為一個專業市場。

So I don't see a lot of California produced gallons going to Mexico, but certainly, we look at Aurora and Nebraska and the logistics have been able to rail product down to Mexico from there.

所以我看不到很多加州生產的加侖油運往墨西哥，但可以肯定的是，我們看看奧羅拉和內布拉斯加州，物流已經能夠將產品從那里通過鐵路運到墨西哥。

That's an immediate opportunity for us.

這對我們來說是一個直接的機會。

We are down there taking a look at the opportunities and talking to the blenders.

我們在那裡尋找機會並與攪拌機交談。

Infrastructure is being put in place.

基礎設施正在到位。

As the overall supply/demand balance tightens and we see growth markets like Mexico, that does tend to support a higher ethanol basis to destination markets like California.

隨著整體供需平衡收緊以及我們看到墨西哥等增長市場，這確實傾向於支持加利福尼亞等目的地市場的乙醇基礎較高。

So I do think that you'll see a positive impact on the overall industry and you will also as markets expand, see a stronger ethanol basis and ethanol pricing in California.

所以我確實認為你會看到對整個行業的積極影響，而且隨著市場的擴大，你也會看到加州的乙醇基礎和乙醇定價更加強勁。

(Operator Instructions).

（操作員說明）。

Your next question comes from the line of Sameer Joshi from Rodman & Renshaw.

您的下一個問題來自 Rodman & Renshaw 的 Sameer Joshi。

So most of my questions have been answered, but just a couple, one related to the cost savings.

所以我的大部分問題都得到了解答，但只有幾個問題與成本節約有關。

I think when it was announced the ICP acquisition, the number $3 million as cost savings was mentioned, but on this call I think I heard a $4.5 million number.

我想當宣布收購 ICP 時，提到了 300 萬美元作為成本節約的數字，但在這次電話會議上，我想我聽到了 450 萬美元的數字。

Was I hearing wrong back then or how do we reconcile that?

是我當時聽錯了還是我們如何調和？

You were not hearing wrong, that was the number.

你沒聽錯，是那個號碼。

We were being -- till we got deeper into it, we're being very cautious and as we have dug in deeper and no more, we are seeing additional advantages and opportunities.

我們一直在——直到我們更深入地研究它，我們一直非常謹慎，隨著我們深入挖掘，我們看到了更多的優勢和機會。

It's both in SG&A as mentioned and other cost savings in terms of being able to consolidate one corn buying position, we think we can get a lower corn price that way and then we really have in both our feed, distillers grain, yeast, and ethanol identified a tremendous amount of savings in logistics and how we move products to market.

如上所述，在 SG&A 和其他成本節約方面，能夠鞏固一個玉米購買頭寸，我們認為我們可以通過這種方式獲得更低的玉米價格，然後我們的飼料、酒糟、酵母和乙醇中都有確定了物流方面的大量節省以及我們如何將產品推向市場。

And that probably is what singularly increased that number as we've explored opportunities to take out third-party costs that we had been paying on all 3 of those areas and internalizing it and are now very efficient and integrated complex there in Pekin.

這可能是這個數字特別增加的原因，因為我們已經探索了機會，以消除我們一直在所有這三個領域支付的第三方成本並將其內部化，現在在北京非常高效和集成的綜合體。

That's actually great.

這實際上很棒。

So on a SG&A alone basis, should we expect your annualized or are the quarterly operating expenses to be in the $7 million range going forward once the operations are integrated?

因此，僅在 SG&A 的基礎上，一旦整合運營，我們是否應該期望您的年度運營費用或季度運營費用在 700 萬美元範圍內？

Right now they are around $6 million.

現在他們大約是600萬美元。

Yes, Sameer, I think we provided guidance historically at around $7.5 million before ICP, but that was before ICP, but I don't have a number for you yet.

是的，Sameer，我認為我們在 ICP 之前提供了大約 750 萬美元的歷史指導，但那是在 ICP 之前，但我還沒有給你的數字。

We still need to finish our integration analysis.

我們仍然需要完成我們的集成分析。

So I'll probably have a number for you next quarter.

所以我可能會在下個季度為您提供一個數字。

As we mentioned on our prepared -- or in my prepared remarks indicated that the numbers were higher this quarter due to the acquisition and some other adjustments.

正如我們在準備好的 - 或在我準備好的評論中提到的那樣，由於收購和其他一些調整，本季度的數字更高。

So I think hopefully that gives you enough to go on at least for a quarter and then we'll give you some more details later on.

所以我想希望這能讓你至少堅持一個季度，然後我們稍後會給你更多細節。

Fair enough.

很公平。

Thanks for that.

感謝那。

At the macro level, we saw the announcement of ADM trying to refocus on their [prairie] operations to industrial and beverage grade and of course your ICP acquisition is in line with that, but do you see industry-wide more such move towards this kind of adaptations or at least acquisitions similar to yours?

在宏觀層面，我們看到 ADM 宣布試圖將其 [prairie] 業務重新專注於工業和飲料級，當然你的 ICP 收購符合這一點，但你是否看到整個行業更多地朝著這種方向發展適應或至少收購類似於你的？

We really don't.

我們真的沒有。

If that is a -- you look at the U.S. market for fuel at 14.5 billion gallons, the market for the high-grade ethanol in the U.S. is a little over 400 million gallons.

如果那是 - 你看看美國的燃料市場為 145 億加侖，那麼美國的高檔乙醇市場略高於 4 億加侖。

So it's a very small market, very few number of producers that produce the grade for those markets particularly the higher quality beverage opportunities and 1 plant deciding to ship 50 million gallons into that market could really see the premiums erode very quickly and it's a significant investment, that's why we felt so good about our acquisition.

所以這是一個非常小的市場，為這些市場生產等級的生產商數量很少，尤其是更高質量的飲料機會，並且一家決定向該市場運送 5000 萬加侖的工廠可能真的會看到溢價迅速下降，這是一項重大投資，這就是為什麼我們對我們的收購感覺如此之好。

We're not -- we're just owning a plant that produces the high alcohol that already had a market.

我們不是——我們只是擁有一家生產已經有市場的高酒精的工廠。

So it's not as if we're expanding into that market.

所以這並不是說我們正在向那個市場擴張。

We're just replacing it with ownership and so, it'd be very difficult for us as a company to justify going to another plant and saying, yes, we're going to put in $15 million, $20 million, $30 million and that's the kind of numbers you're talking about to produce a high-grade ethanol to then have the consequence be seeing pricing erode in that area.

我們只是用所有權取代它，因此，作為一家公司，我們很難證明去另一家工廠並說，是的，我們將投入 1500 萬美元、2000 萬美元、3000 萬美元，這就是您所說的生產高級乙醇的數字會導致該地區的價格下降。

I would point out that, I think some people misunderstood what ADM was saying.

我要指出的是，我認為有些人誤解了 ADM 的意思。

As I understand their announcement and a follow-up question that was asked, it's not as if they are shifting production to beverage.

據我了解他們的公告和被問到的後續問題，他們並沒有將生產轉向飲料。

They are taking 100 million gallons offline of fuel grade immediately.

他們立即將 1 億加侖的燃料等級下線。

So that's a great contributor to helping to tighten up the supply/demand balance and they are going to refocus just on the higher grades that they're already producing at that plant, maybe there will be some incremental growth, but the real announcement was they are reducing capacity at that plant to take out the fuel and to support and simplify the process there and focus on the high-grade.

因此，這是幫助收緊供需平衡的重要因素，他們將重新專注於他們已經在該工廠生產的更高等級的產品，也許會有一些增量增長，但真正的宣布是他們正在降低該工廠的產能，以取出燃料並支持和簡化那裡的流程，並專注於高品位。

That's great.

那太棒了。

Actually I just have one more if I may.

實際上，如果可以的話，我只需要一個。

Bryon, the number $16 million for CapEx that you mentioned, does it include any expense at the ICP side?

Bryon，您提到的資本支出 1600 萬美元，是否包括 ICP 方面的任何費用？

No.

不。

So I guess my story is hold on, be patient, wait till the third quarter.

所以我想我的故事是堅持下去，耐心點，等到第三季度。

We're working through that.

我們正在努力解決這個問題。

We'll give you back -- we'll come back with some ideas as to what we think we would be spending, but I think that you should be -- you should expect that consistent with our message of being conservative and given where numbers are today that we expect that number to be fairly small.

我們會給你回饋——我們會就我們認為我們會花多少錢提出一些想法，但我認為你應該——你應該期望這與我們保守的信息一致，並給出數字今天我們預計這個數字會相當小。

Your next question comes from the line of Chris Souther from Cowen.

您的下一個問題來自 Cowen 的 Chris Souther。

It's Chris on for Jeff.

這是傑夫的克里斯。

Most of my questions have been answered.

我的大部分問題都已得到解答。

I just wanted to see if you could provide a bit of color on the third-party sales as it relates to the ICP merger, having kind of better access to export markets potentially makes those third-party margins more attractive.

我只是想看看您是否可以為與 ICP 合併相關的第三方銷售提供一些色彩，更好地進入出口市場可能會使這些第三方利潤更具吸引力。

Could you guys see is -- going higher than kind of the 110 million to 120 million gallon per quarter range we've seen lately?

你們能看到 - 高於我們最近看到的每季度 1.1 億至 1.2 億加侖的範圍嗎？

I think it's possible particularly in a market that's been a bit long.

我認為這是可能的，特別是在一個已經有點長的市場中。

The third-party business has been very competitive and in some areas, just not worth the cost of capital.

第三方業務一直非常有競爭力，在某些領域，只是不值得資本成本。

So we have not been as focused on growing that part of the business, but it's very important that we protect the business we have because it's so synergistic with our production -- the whole production marketing model to really trade around our assets and so to your point, we are evaluating what opportunities this creates.

因此，我們並沒有那麼專注於發展這部分業務，但保護我們擁有的業務非常重要，因為它與我們的生產非常協同——整個生產營銷模式真正圍繞我們的資產進行交易，因此與您的點，我們正在評估這會創造什麼機會。

To make money in the third-party business, you really -- you need to have something -- some hooks, some differentiation whether it's terminals, whether its access to the water, which this gives us.

為了在第三方業務中賺錢，你真的 - 你需要有一些東西 - 一些鉤子，一些差異化，無論是終端，是否可以訪問水，這給了我們。

So it is possible.

所以這是可能的。

I would say that's not a high priority right now for us, but it is certainly an asset that can be leveraged to look at those sorts of opportunities.

我想說這對我們來說現在不是一個高優先級，但它肯定是一種可以用來看待這些機會的資產。

Got it.

知道了。

That's helpful.

這很有幫助。

And then, it kind of seems like you were kind of alluding that 2/3, 1/3, I'll call that an all mix would probably stay pretty static within the ICP.

然後，您似乎在暗示 2/3、1/3，我稱之為全混音可能會在 ICP 中保持相當靜態。

I just wanted to see though, when you're talking about kind of the co-products between alcohol and ethanol, how does that -- do they have kind of similar returns?

不過，我只是想看看，當您談論酒精和乙醇之間的副產品時，它們是如何產生的——它們有類似的回報嗎？

Yes.

是的。

So it's a dry mill, so where the added investment of that plant has been is in the fairly extensive equipment to produce that very high quality ethanol, but in terms of co-products, it's the same co-products dry distillers grain and corn oil.

所以它是一個乾磨機，所以該工廠的額外投資是在相當廣泛的設備上生產非常高質量的乙醇，但就副產品而言，它是相同的副產品乾酒糟穀物和玉米油.

We actually see an opportunity to improve the performance in that area, particularly on the corn oil side.

我們實際上看到了改善該領域表現的機會，特別是在玉米油方面。

The output has been a little less than what we consider to be standard for our plants and we're addressing that to increased corn oil, but it's more or less the same co-product platform that you have in any dry mill.

產量略低於我們認為我們工廠的標準產量，我們正在解決這一問題，以增加玉米油，但它或多或少與您在任何干磨機中擁有的副產品平台相同。

(Operator Instructions) We have no further questions at this time.

（操作員說明）我們目前沒有其他問題。

I will turn the call back over to Mr. Koehler.

我會將電話轉回給 Koehler 先生。

Thanks Amanda and thank you all for joining us today.

感謝阿曼達，感謝大家今天加入我們。

We appreciate your support and interest in the company and look forward to speaking with you soon.

我們感謝您對公司的支持和興趣，並期待很快與您交談。

Have a great day.

祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference.

女士們，先生們，今天的會議到此結束。

Thank you for your participation and have a wonderful day.

感謝您的參與，祝您有美好的一天。

You may now disconnect.

您現在可以斷開連接。