Alto Ingredients Inc (ALTO) 2017 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Pacific Ethanol Inc.

女士們，先生們，早上好，歡迎來到太平洋乙醇公司。

Third Quarter 2017 Financial Results Conference Call.

2017 年第三季度財務業績電話會議。

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

（操作員說明）作為提醒，此電話會議正在錄音中。

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

我現在想將會議轉交給您的主持人 Becky Herrick 女士。

Please begin.

請開始。

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

謝謝您，接線員，感謝大家今天參加太平洋乙醇公司 2017 年第三季度業績電話會議。

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 November 15, the details of which are included in yesterday's press release.

今天電話的重播將在 11 月 15 日之前提供，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, November 8, and therefore, you are 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 11 月 8 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 of those 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演示文稿幻燈片 2 上的安全港聲明，該聲明表示，這些演示文稿的某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 or 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、風險或其他因素。

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 of benefit for income taxes, asset impairments, the 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、所得稅福利提供、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 Pacific Ethanol 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？

Thanks, Becky, and thanks to everyone for joining us today.

謝謝，貝基，也感謝大家今天加入我們。

Our third quarter results demonstrate both sequential and year-over-year quarterly improvements in net sales, gross profit, operating income, net loss and adjusted EBITDA.

我們的第三季度業績顯示了淨銷售額、毛利潤、營業收入、淨虧損和調整後 EBITDA 的連續和同比季度改善。

This reflects the combination of improved margins later in the quarter and the benefits of our acquisition of ICP on July 3.

這反映了本季度後期利潤率的提高以及我們在 7 月 3 日收購 ICP 的好處。

For the quarter, we recorded record total sales of 250 million gallons and company production of a record 142 million gallons.

本季度，我們的總銷售額達到創紀錄的 2.5 億加侖，公司產量達到創紀錄的 1.42 億加侖。

ICP has made us a more diversified company by adding high-quality alcohol products.

ICP通過添加高品質的酒精產品使我們成為一個更加多元化的公司。

While we do not break out our plant's performance individually, our total high-value alcohol products contribute favorably to margins and represented approximately 10% of total ethanol sales during the third quarter.

雖然我們沒有單獨列出我們工廠的業績，但我們的高價值酒精產品總量對利潤率做出了有利貢獻，佔第三季度乙醇總銷售額的約 10%。

As noted on our August call, we saw a slow start to Q3.

正如我們在 8 月份的電話會議上所指出的，我們看到第三季度的開局緩慢。

Margins improved throughout the quarter with the month of September producing the best financial results.

整個季度的利潤率都有所提高，其中 9 月份的財務業績最好。

So far, Q4 is off to a similarly slow start as ethanol inventories are higher than they were a year ago.

到目前為止，第四季度的開局同樣緩慢，因為乙醇庫存高於一年前。

However, we are encouraged by continued strong gasoline demand, increasing penetration of higher ethanol blends and growing export opportunities.

然而，我們對持續強勁的汽油需求、更高含量的乙醇混合物的滲透率不斷提高以及出口機會的增長感到鼓舞。

With that said, we will continue to manage our facility's production levels to optimize plant profitability.

話雖如此，我們將繼續管理我們工廠的生產水平，以優化工廠的盈利能力。

On the regulatory front, the EPA has recently renewed its commitment to a robust renewable fuels program and in weeks of uncertainty in the ethanol industry.

在監管方面，EPA 最近重申了其對強有力的可再生燃料計劃的承諾，並且在乙醇行業數週的不確定性中。

In a letter to several senators confirming his support for the RFS, EPA Chief Scott Pruitt stated his commitment to setting final RVO levels for 2018 at or above the proposed levels.

EPA 局長 Scott Pruitt 在致多位參議員的信中確認了他對 RFS 的支持，表示他致力於將 2018 年的最終 RVO 水平設定為或高於提議的水平。

His commitment to finalize the 2018 RVO by the statutory deadline of November 30 of this year that the EPA would finalize the decision within the next 30 days to deny the request to change the point of obligation for RINS, that no action will be taken to allow ethanol exports to count toward compliance with the RFS and the promise that EPA would look at the potential change to remove artificial barriers to the year-round use of E15.

他承諾在今年 11 月 30 日的法定截止日期之前完成 2018 年 RVO，即 EPA 將在未來 30 天內最終決定拒絕更改 RINS 義務點的請求，不會採取任何行動來允許乙醇出口計入 RFS 的合規性以及 EPA 將考慮可能發生的變化以消除對 E15 全年使用的人為障礙的承諾。

We were pleased with the EPA's message and are optimistic at the final 2018 RVO will ultimately demonstrate the EPA's commitment to growing the renewable fuels market and strengthening the agricultural economy.

我們對 EPA 的信息感到滿意，並對最終的 2018 RVO 感到樂觀，最終將證明 EPA 對發展可再生燃料市場和加強農業經濟的承諾。

We are on track with our plant improvement initiatives.

我們正在推進我們的工廠改進計劃。

We are in the final startup stages with our cogeneration system at Stockton, and we expect to be at full capacity within the next 2 weeks.

我們在斯托克頓的熱電聯產系統正處於最後啟動階段，我們預計將在未來兩週內滿負荷運行。

We anticipate the cogeneration system will reduce our annual energy cost by up to $4 million.

我們預計熱電聯產系統將使我們的年度能源成本降低多達 400 萬美元。

Our industrial scale membrane system at Madera is in operation, and we are realizing energy savings of a 5% reduction in natural gas costs at the plant.

我們在馬德拉的工業規模膜系統正在運行，我們正在實現節能，工廠的天然氣成本降低了 5%。

We are working to further optimize this performance.

我們正在努力進一步優化這種性能。

Overall, we estimate the energy savings, operating efficiencies and carbon premium, combined, will total close to $1 million annually at current market rates.

總體而言，我們估計能源節約、運營效率和碳溢價加起來每年將接近 100 萬美元，以目前的市場價格計算。

We estimated for a new LCFS pathway with CARB at Madera, and we continue to evaluate expanding the technology to our other plants.

我們估計了在 Madera 使用 CARB 的新 LCFS 途徑，我們將繼續評估將該技術擴展到我們的其他工廠。

We are on track to begin commercial production of cellulosic ethanol at Madera this quarter, and we have submitted with the EPA for pathway approval for Magic Valley.

我們有望在本季度在 Madera 開始商業化生產纖維素乙醇，我們已向 EPA 提交了 Magic Valley 的途徑批准。

We expect D3 RIN approval of both facilities by early 2018, at which point, we will have 3 of our plants producing cellulosic ethanol from corn fiber.

我們預計到 2018 年初這兩個設施都將獲得 D3 RIN 批准，屆時我們將有 3 家工廠從玉米纖維中生產纖維素乙醇。

And finally, construction of our solar system at Madera is well underway, and we remain on schedule to begin full scale of operations in early 2018.

最後，我們在馬德拉的太陽能係統建設正在順利進行，我們將按計劃在 2018 年初開始全面運營。

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。

The integration of ICP is going very well with anticipated savings of $4.5 million annually over the next 9 months.

ICP 的整合進展順利，預計在未來 9 個月內每年可節省 450 萬美元。

While we expect to produce savings in SG&A, most of our savings are expected to be achieved in reducing operating and logistical costs.

雖然我們希望節省 SG&A，但我們的大部分節省預計將通過降低運營和物流成本來實現。

Today, the integration of personnel, IT and accounting services is effectively complete, and we have begun internalizing logistical and storage services.

如今，人事、IT和會計服務的整合已經有效完成，我們已經開始內部化物流和存儲服務。

We expect the latter activities to accelerate and the result in material benefits to be reflected in our financial results in the coming quarters.

我們預計後者的活動將加速，並在未來幾個季度的財務業績中反映物質利益。

With that, I'd like to turn the call over to our CFO, Bryon McGregor.

有了這個，我想把這個電話轉給我們的首席財務官，Bryon McGregor。

Thank you, Neil.

謝謝你，尼爾。

Just as a note before I begin, the third quarter 2017 is the first quarter in which the operating results of ICP, which we acquired July 3, are consolidated with our quarterly results.

正如我開始之前的說明，2017 年第三季度是我們在 7 月 3 日收購的 ICP 的經營業績與我們的季度業績合併的第一季度。

For the third quarter 2017 compared to the third quarter of 2016, net sales were $445.4 million compared to $417.8 million.

與 2016 年第三季度相比，2017 年第三季度的淨銷售額為 4.454 億美元，而 4.178 億美元。

Cost of goods sold were $433.4 million compared to $411.4 million.

商品銷售成本為 4.334 億美元，而 4.114 億美元。

Gross profit was $12.1 million compared to $6.4 million.

毛利潤為 1210 萬美元，而毛利潤為 640 萬美元。

SG&A expenses were $8.7 million compared to $6 million, reflecting increased benefits, noncash compensation and transaction costs associated with the acquisition of ICP.

SG&A 費用為 870 萬美元，而 600 萬美元，反映了與收購 ICP 相關的福利、非現金補償和交易成本增加。

As Neil previously noted, we have effectively completed the integration of ICP, the cost of which impacted our Q3 results.

正如 Neil 之前所說，我們已經有效地完成了 ICP 的整合，其成本影響了我們第三季度的業績。

Accordingly, we expect SG&A expenses for the fourth quarter to approximate $8 million.

因此，我們預計第四季度的 SG&A 費用約為 800 萬美元。

Interest expense was $3.8 million compared to $3.9 million.

與 390 萬美元相比，利息支出為 380 萬美元。

Net loss available to common stockholders was $521,000 or $0.01 per share.

普通股股東可獲得的淨虧損為 521,000 美元或每股 0.01 美元。

This compares to the net loss of $3.8 million or $0.09 per share in the year ago period.

相比之下，去年同期淨虧損 380 萬美元或每股 0.09 美元。

Adjusted EBITDA was $13.2 million compared to $9.3 million in the year ago period.

調整後的 EBITDA 為 1320 萬美元，而去年同期為 930 萬美元。

For the first 9 months of 2017, net sales were $1.2 billion, consistent with the year ago period.

2017 年前 9 個月，淨銷售額為 12 億美元，與去年同期持平。

Gross profit was $7.9 million compared to the $25.1 million.

毛利潤為 790 萬美元，而毛利潤為 2510 萬美元。

Net loss was $22.6 million or $0.53 per share compared to $12.6 million or $0.30 per share.

淨虧損為 2260 萬美元或每股 0.53 美元，而淨虧損為 1260 萬美元或每股 0.30 美元。

And adjusted EBITDA was $13.9 million compared to $31.3 million.

調整後的 EBITDA 為 1390 萬美元，而調整後的 EBITDA 為 3130 萬美元。

Turning to our balance sheet, cash and cash equivalents were $56.9 million at September 30, 2017, compared to $68.6 million at December 31, 2016.

轉向我們的資產負債表，截至 2017 年 9 月 30 日，現金和現金等價物為 5690 萬美元，而 2016 年 12 月 31 日為 6860 萬美元。

Although our cash reserves are modestly lower year-over-year, our working capital remains strong at over $120 million, and our excess cash and loan availability exceeded $105 million at quarter-end.

儘管我們的現金儲備與去年同期相比略有下降，但我們的營運資金仍然強勁，超過 1.2 億美元，並且我們的超額現金和貸款可用性在季度末超過了 1.05 億美元。

In September, we refinanced $47.4 million in promissory notes related to the ICP acquisition.

9 月，我們為與 ICP 收購相關的 4740 萬美元期票再融資。

To repay the notes, we used $6 million of cash on hand and $42 million in proceeds from new term and revolving debt financing with CoBank, which improved our balance sheet and provided a lower cost borrowing.

為了償還票據，我們使用了 600 萬美元的手頭現金和 4200 萬美元的新期限和與 CoBank 的循環債務融資的收益，這改善了我們的資產負債表並提供了更低的借貸成本。

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 third quarter of 2017, our capital expenditures totaled $6.1 million, primarily related to plant improvement initiatives.

2017 年第三季度，我們的資本支出總額為 610 萬美元，主要與工廠改進計劃有關。

This brings our 9-month total to $12.3 million.

這使我們 9 個月的總額達到 1230 萬美元。

We reaffirm our expectation that full year CapEx will be less than $20 million

我們重申我們預計全年資本支出將低於 2000 萬美元

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

有了這個，我會把電話轉回給尼爾。

Thank you, Bryon.

謝謝你，布賴恩。

As I mentioned, Q4 is off to a slow start, reflecting higher year-over-year ethanol inventories.

正如我所提到的，第四季度開局緩慢，反映出乙醇庫存同比增加。

However, higher oil and gas prices and relatively low ethanol prices have resulted in additional export volumes being booked and providing a strong incentive for higher ethanol blending.

然而，較高的石油和天然氣價格和相對較低的乙醇價格導致額外的出口量被預訂，並為更高的乙醇混合提供了強大的動力。

And lastly, we have seen an increase in ethanol prices and some improvement in margins.

最後，我們看到乙醇價格上漲，利潤率有所改善。

We are encouraged by continued strong gasoline demand, increasing penetration of higher ethanol blends and growing export opportunities.

我們對持續強勁的汽油需求、高級乙醇混合物的滲透率不斷提高以及出口機會的增長感到鼓舞。

Ethanol remains the lowest cost source of octane in the world, and at today's economics, the lowest cost source of liquid fuels.

乙醇仍然是世界上成本最低的辛烷來源，並且在今天的經濟學中，它是成本最低的液體燃料來源。

In support of the growing demand for ethanol around the world, we will continue to evaluate and make investments and initiatives that promote production efficiencies, diversify our products and revenues, improve our carbon score and improve plant profitability.

為支持全球對乙醇不斷增長的需求，我們將繼續評估和開展投資和舉措，以提高生產效率、使我們的產品和收入多樣化、提高我們的碳得分並提高工廠盈利能力。

With that, Suzanne, I'd like to open the call for questions.

有了這個，蘇珊娜，我想打開提問的電話。

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

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

So good performance in the quarter, I mean, especially in light of market conditions.

我的意思是，本季度表現如此出色，尤其是考慮到市場狀況。

What stood out to me was basis.

對我來說最突出的是基礎。

Is that -- I mean, clearly you're opportunistic there.

那是 - 我的意思是，顯然你在那裡是機會主義的。

You did very well there.

你在那裡做得很好。

Just curious kind of trends you're seeing, what your expectation would be for fourth quarter.

您看到的只是奇怪的趨勢，您對第四季度的期望是什麼。

And is that something that you were able to lock in?

那是你能夠鎖定的東西嗎？

I mean, was that a holdover from locking something in from Q2 or something you were able to lock in, in Q3 and could help going forward?

我的意思是，這是從第二季度鎖定某些東西的保留，還是您在第三季度能夠鎖定的東西，並且可以幫助前進？

To your point, we're opportunistic on basis.

就你的觀點而言，我們是機會主義的。

And from our experience there, our points in time, where clearly it looks like a good time to lock forward.

從我們那裡的經驗，我們的時間點來看，顯然現在是鎖定前進的好時機。

While as you know, we don't do a lot of forward-hedging, we do take positions on basis that did benefit us in the quarter.

如您所知，我們並沒有進行很多前瞻性對沖，但我們確實在本季度對我們有利的基礎上建立頭寸。

We do have some basis on for Q4 that is better than current market as well.

我們確實有一些第四季度的基礎，這也優於當前市場。

So we'd expect that to continue to be a strength of our portfolio.

因此，我們希望這將繼續成為我們投資組合的優勢。

We have seen with this very large harvest, it's just -- generally, we're seeing relatively weak basis in the market, so we are being patient.

我們已經看到了這個非常大的收穫，只是 - 一般來說，我們看到市場基礎相對疲軟，所以我們保持耐心。

We feel that as farmers are now finishing the harvest, there could very will be some additional break in the basis throughout the system.

我們認為，隨著農民現在完成收割，整個系統的基礎很可能會出現一些額外的突破。

In certain areas, particularly Illinois, we have seen historically low basis numbers, where typically we would be an option or above on our plants in Illinois.

在某些地區，尤其是伊利諾伊州，我們看到的基數處於歷史低位，通常我們在伊利諾伊州的工廠可以選擇或更高。

We have seen basis that it's slightly under the board, continues to be a very low basis.

我們已經看到基數略低於董事會，繼續處於非常低的基數。

Nebraska had been able to pick and choose with the product going west.

內布拉斯加州已經能夠選擇西部的產品。

When sellers are wanting to book the trains, we've been able to layer in some pretty good basis for those plants as well.

當賣家想要預訂火車時，我們也能夠為這些植物打下一些非常好的基礎。

Got it.

知道了。

Maybe just turning to the regulatory front.

也許只是轉向監管方面。

I mean, obviously, that's -- the concerns there have eased, a fair amount as of late.

我的意思是，顯然，那是 - 那裡的擔憂已經緩解，最近相當多。

But maybe could you just talk about the advanced biofuels component of the RVO?

但也許你能談談 RVO 的先進生物燃料組件嗎？

And I know you've got a number of initiatives around cellulosic, but just how maybe that impacts taking it to other plants going forward.

而且我知道您已經圍繞纖維素採取了許多舉措，但這可能會對未來將其推廣到其他工廠產生怎樣的影響。

We'll be cautious.

我們會小心的。

We have, as I mentioned in the prepared remarks, now 3 plants that are teed up for that.

正如我在準備好的評論中提到的，我們現在有 3 家工廠為此做好了準備。

I think that if there's a risk around the RFS, it's not on the conventional side.

我認為，如果 RFS 存在風險，則不在傳統方面。

In fact, we're cautiously optimistic that as EPA considers a reset of the RFS, that they're required to do now under statute and having missed on these advanced targets for a number of years.

事實上，我們謹慎樂觀地認為，當 EPA 考慮重新設置 RFS 時，他們現在根據法規必須這樣做，並且多年來一直未能實現這些先進目標。

And on the total RFS numbers, that we could actually see a boost in the conventional numbers.

在 RFS 總數上，我們實際上可以看到傳統數字的增加。

But there is some risk around the advanced -- Scott Pruitt, Secretary Pruitt has made clear that he doesn't want the EPA to be creating that market.

但先進的市場存在一些風險——普魯伊特部長斯科特普魯伊特明確表示，他不希望美國環保署創造這個市場。

That being said, the statute does have aggressive targets, and it also has statutory requirements that at a minimum.

話雖如此，該法規確實具有激進的目標，並且至少還具有法定要求。

We're providing a market for the existing and projected advanced biofuels that are in the pipeline.

我們正在為正在籌備中的現有和預計的先進生物燃料提供市場。

So we do feel good about the corn fiber.

所以我們對玉米纖維感覺很好。

We think that it is something that will continue to spread throughout our platform and the industry, and that the RFS will provide a support for that.

我們認為這將繼續在我們的平台和行業中傳播，RFS 將為此提供支持。

Okay.

好的。

Last one for me, just related to exports.

最後一個對我來說，只是與出口有關。

Obviously, where ethanol is priced right now, it is opening some things up.

顯然，目前乙醇的定價方式正在開放一些東西。

Just maybe some early thoughts on your expectations for 2018 and some of the key markets that you would look at to drive then.

可能只是對您對 2018 年的預期以及您屆時將要推動的一些關鍵市場的一些早期想法。

We're pretty bullish as are others in the industry on exports even with some of the trade barriers that had been erected in Brazil and China.

儘管巴西和中國設置了一些貿易壁壘，但我們和業內其他人一樣非常看好出口。

What that has done has raised significantly the price of ethanol in those markets.

這樣做大大提高了這些市場的乙醇價格。

So we expect to see Brazil continuing to be a large importer of ethanol from the United States.

因此，我們預計巴西將繼續成為美國乙醇的主要進口國。

U.S. ethanol continues to be far and away, the lowest cost source of not only liquid fuels but ethanol.

美國乙醇仍然遙遙領先，它不僅是液體燃料而且是乙醇的成本最低的來源。

We have various initiatives throughout the world to continue to include higher levels of biofuels to meet economic and environmental goals.

我們在世界各地採取了各種舉措，以繼續使用更高水平的生物燃料來實現經濟和環境目標。

China has announced their desire to be at a 10% ethanol blend by 2020.

中國已宣布他們希望到 2020 年實現 10% 的乙醇混合物。

There has definitely been a resurgence in construction of ethanol plants in that market.

在該市場上，乙醇工廠的建設肯定已經復蘇。

But they're going to, in our view, need some incremental gallons to bridge between where they are today, producing less than 1 billion gallons, and the objective of 10%, which would be about 4 billion gallons.

但在我們看來，他們將需要一些增量加侖來彌補他們今天的產量不足 10 億加侖和 10% 的目標，即約 40 億加侖。

There has actually been quite a bit of chatter in the trade this week with the ethanol price being as low as it is, that there is -- finally, with the year where we've exported nothing to China, that there appears to be some activity that not only in the balance of 2017 but into 2018.

本週交易中實際上有相當多的議論，因為乙醇價格如此之低，最後，在我們沒有向中國出口任何東西的那一年，似乎有一些活動不僅在 2017 年的餘額中，而且在 2018 年。

India continues to increase with the ethanol being so competitively priced from an octane standpoint.

從辛烷值的角度來看，隨著乙醇價格極具競爭力，印度繼續增長。

You start seeing some incremental use in Oman and the Emirates, where they're using this octane to distribute throughout the Middle East and in other areas.

您開始在阿曼和阿聯酋看到一些增量使用，他們使用這種辛烷值在整個中東和其他地區分發。

So our overall expectation, I mean, it's consistent with what, I think, we've heard from some other companies, is that we should be pretty close at that 1.3 billion gallons, which would be a record of exports for 2017.

所以我們的總體預期，我的意思是，這與我們從其他一些公司那裡聽到的一致，即我們應該非常接近 13 億加侖，這將是 2017 年的出口記錄。

And 2018 will be something greater than that, whether it's 1.4 billion, could even be higher than that.

而 2018 年會比這更大，不管是 14 億，甚至可能更高。

I think if you factor in, which really is hard to do right now, but if indications are correct that China does become, again, a good market, we could see very, very strong exports next year.

我認為，如果考慮到目前確實很難做到這一點，但如果有跡象表明中國確實再次成為一個好的市場，那麼明年我們可能會看到非常非常強勁的出口。

And your next question comes from the line of Sameer Joshi of HCWR.

您的下一個問題來自 HCWR 的 Sameer Joshi。

As far as the CapEx goes, I think I heard Bryon reiterate that CapEx will be less than $20 million for the year.

就資本支出而言，我想我聽到布賴恩重申，今年的資本支出將低於 2000 萬美元。

And for the first of 3 quarters, it was in the $12.3 million range.

在前三個季度中，它在 1230 萬美元的範圍內。

Going forward, are -- is this excess CapEx or additional CapEx expected for the Madera and the solar improvements there?

展望未來，這是否是預期的超額資本支出或額外的資本支出，用於馬德拉和那裡的太陽能改進？

Or are you making any further changes to the ICP for the additions upgrades?

或者您是否對 ICP 進行任何進一步的更改以進行附加升級？

At this point, the balance of the year is projects that have been ongoing, as you mentioned, the solar, certainly the cogen, some other items throughout the platform.

在這一點上，今年的餘額是一直在進行的項目，正如你所提到的，太陽能，當然還有熱電聯產，以及整個平台的其他一些項目。

But it doesn't include any specific new additions at ICP.

但它不包括 ICP 的任何特定新增內容。

We continue to evaluate the opportunities.

我們將繼續評估這些機會。

But through our management practices and the great operating team that we have there at ICP, through just our own housekeeping and chemistry use and repairs and maintenance that have been ongoing, we've been able to already improve the production output of that facility.

但是通過我們在 ICP 的管理實踐和強大的運營團隊，通過我們自己的內務和化學使用以及一直在進行的維修和維護，我們已經能夠提高該設施的產量。

Okay.

好的。

Staying on ICP, you mentioned in your remarks that your ongoing overall OpEx is at -- level is -- SG&A, level is expected to be $8 million as compared to $8.7 million this quarter.

留在 ICP 上，您在講話中提到，您正在進行的整體運營支出處於 - 水平是 - SG&A，預計水平為 800 萬美元，而本季度為 870 萬美元。

That's a reduction of around $700,000.

這減少了大約 700,000 美元。

And your overall annual operating savings from the ICP acquisition are expected to be $4.5 million.

您從 ICP 收購中獲得的總體年度運營成本預計為 450 萬美元。

So does the $8 million number that you gave include the annualized savings of $4.5 million?

那麼你給出的 800 萬美元的數字是否包括每年節省的 450 萬美元？

It does, but that fold at $700,000 delta is not all attributable to ICP.

確實如此，但 700,000 美元的 delta 折價並不完全歸因於 ICP。

It includes additional -- it not only includes the acquisition cost, right, and some -- and the like.

它包括額外的——它不僅包括購置成本、權利和一些——等等。

So that's a little inflated.

所以這有點膨脹。

But in additions -- additional professional costs and things, but it -- the $8 million is reflective in, going forward, the savings that we would expect in the SG&A side.

但除此之外——額外的專業成本和其他東西——800 萬美元反映了我們在 SG&A 方面所期望的節省。

That's correct.

這是正確的。

Okay.

好的。

Good.

好的。

As for the interest rate number, I see it is sequentially higher even though you refinanced and the overall debt number may actually be lower in this quarter compared to previous.

至於利率數字，我認為儘管您進行了再融資，但本季度的總體債務數字實際上可能低於上一季度。

Can you reconcile those, the higher interest costs versus lower interest or lower debt levels?

您能否調和這些，較高的利息成本與較低的利息或較低的債務水平？

We have the -- clearly, the higher balance.

我們有 - 顯然，更高的平衡。

We carry the seller notes for the ICP transaction through a material portion of the quarter.

我們通過本季度的重要部分攜帶 ICP 交易的賣方票據。

And so when we were able to refinance with CoBank, want to believe it was basically for just 1 month out of the 3, we were able to lower that cost to be in line with the rest of our term debt.

因此，當我們能夠與 CoBank 進行再融資時，我們想相信這基本上只是 3 個月中的 1 個月，我們能夠降低該成本以與我們剩餘的定期債務保持一致。

And noting that it's significantly lower than it has been historically, our interest costs.

並註意到它大大低於歷史上的利息成本。

Historically, yes.

從歷史上看，是的。

That is true.

那是真實的。

Okay.

好的。

As far as ethanol prices, I think the latest price is around $1.38.

至於乙醇價格，我認為最新的價格在 1.38 美元左右。

Do you have any visibility?

你有知名度嗎？

Or what -- or on the ground, what are you looking at?

或者什麼——或者在地面上，你在看什麼？

Do you -- when do you see these excess inventory levels to run out -- down and ethanol prices to rebound?

你——你什麼時候看到這些過剩的庫存水平用完——下降和乙醇價格反彈？

I know I'm trying to make you predict the future.

我知道我試圖讓你預測未來。

But what do you see from the ground?

但是你從地面上看到了什麼？

Well, what we see from the ground and what we see historically is when you get down to these levels of $1.40 and also relative to what now is some higher gasoline and oil prices, so a very large spread of about $0.25 discount ethanol to gasoline.

好吧，我們從地面看到的以及我們從歷史上看到的是，當你降至 1.40 美元的這些水平時，並且相對於現在的汽油和石油價格有所上漲，因此乙醇與汽油的價差非常大，約為 0.25 美元。

And given the inherent value of ethanol, that's what does -- as the traders have fun to say, there's no better cure for low prices than low prices.

鑑於乙醇的內在價值，這就是它的作用——正如交易員所說的那樣，沒有比低價更好的治療低價格的方法了。

And we are seeing a pickup in demand, and we are seeing a slight decreased inventories.

我們看到需求回升，我們看到庫存略有下降。

So we would expect to see inventories come off a bit, but it's difficult in fourth quarter for them to come off too much.

因此，我們預計庫存會有所下降，但在第四季度它們很難下降太多。

That's been part of the problem as they, typically going into the fourth quarter, would have dropped more in the third quarter than we've seen this year.

這是問題的一部分，因為它們通常會進入第四季度，在第三季度的跌幅會比我們今年看到的更多。

We are running at levels that are about 4%-plus, I believe, higher than last year, so that would help.

我相信，我們的運行水平比去年高出 4% 以上，所以這會有所幫助。

We did see -- the report just came out this morning, to see a slight drop in inventories.

我們確實看到了——報告今天早上剛出爐，庫存略有下降。

So one data point, encouraging.

所以一個數據點，令人鼓舞。

But I think the -- really, it's a -- the exports, if what we're hearing out there is coming to fruition, then we see a very strong quarter in exports.

但我認為 - 真的，這是一個 - 出口，如果我們聽到的消息正在取得成果，那麼我們會看到一個非常強勁的季度出口。

That would also help draw the inventories and get us back into a better balance.

這也將有助於提取庫存並使我們恢復到更好的平衡。

We look ahead to 2018.

我們展望2018。

So taken away what happens in the here and now, Q4 could be choppy and difficult.

因此，考慮到此時此地發生的事情，第四季度可能會波濤洶湧且困難重重。

But our view on 2018, when you consider a pretty flat, maybe slightly increasing gasoline demands of 14.4 billion gallons of domestic use, and if we were truly to see a export number that's 1.4 million, even excess, you're then getting to levels that are very well matched with supply based on current run rates.

但我們對 2018 年的看法，當你考慮到國內使用的 144 億加侖汽油需求相當平穩，可能略有增加，如果我們真的看到 140 萬加侖的出口數量，甚至超過，那麼你就會達到水平根據當前的運行速度，它們與供應非常匹配。

And we would then -- with the incremental E15 inclusion, that could be 200 million, 300 million gallons, we could start seeing a much snugger of supply/demand balance.

然後我們會 - 隨著 E15 的增加，可能是 2 億、3 億加侖，我們可以開始看到供需平衡更加緊密。

So we're reasonably constructive on 2018 and cautious on Q4.

因此，我們對 2018 年相當有建設性，對第四季度持謹慎態度。

And your next question comes from the line of Jeff Osborne of Cowen.

您的下一個問題來自 Cowen 的 Jeff Osborne。

First of all, just a clarification.

首先，只是一個澄清。

Was the 10% on ICP, Bryon, was that of gallons or revenue?

ICP 的 10%，Bryon，是加侖還是收入？

That was dollar revenue.

那是美元收入。

Dollar revenue, perfect.

美元收入，完美。

And then you indicated that you were able to drive a little bit of incremental yield.

然後你表示你能夠推動一點點增量收益。

Is there any initiatives notable for 2018 that you can discuss as it relates to the ICP's facility in particular?

2018 年有什麼值得注意的舉措可以討論，尤其是與 ICP 的設施有關嗎？

We're evaluating that now in the overall context of our capital plan.

我們現在正在我們的資本計劃的整體背景下評估這一點。

That is certainly an opportunity.

這當然是一個機會。

We have been able to get the production levels up there, and we've been very encouraged with what we can do just with the tools that we already have on hand.

我們已經能夠將生產水平提高到那裡，並且我們對使用我們手頭已有的工具可以做的事情感到非常鼓舞。

How much more we'll do is under evaluation.

我們還會做多少正在評估中。

Got it.

知道了。

And then just a nitpick question.

然後只是一個挑剔的問題。

Will the 10Q, when that comes out, will that have more detail on the ICP so we'll be able to see organic versus inorganic growth of the company or no?

10Q 發佈時，是否會提供更多關於 ICP 的詳細信息，以便我們能夠看到公司的有機增長與無機增長？

Yes, it will.

是的，它會的。

That's part of the regulatory requirement in an acquisition.

這是收購中監管要求的一部分。

We will be providing some additional color on ICP specifically.

我們將專門為 ICP 提供一些額外的顏色。

Got it.

知道了。

And then just 2 other quick ones.

然後只是另外兩個快速的。

I think when you started the year, you talked about $46 million in CapEx.

我想當你年初時，你談到了 4600 萬美元的資本支出。

We're now looking for less than half of that.

我們現在正在尋找不到一半。

Should the $20 million or so that you've deferred, should we think about that being a good run rate for next year?

如果您推遲了 2000 萬美元左右，我們是否應該考慮將其作為明年的良好運行率？

Or are you going to take more of a wait-and-see approach as we get through the choppy Q4 and see if things turn the corner for 2018 and the overall market gets better, then maybe spend that middle of the year second half?

或者當我們度過波濤洶湧的第四季度時，您是否會採取更多的觀望態度，看看情況是否會在 2018 年出現轉機，整體市場是否會好轉，然後可能會在下半年度過年中？

I would say it's wait-and-see, but active wait-and-see as we evaluate.

我會說這是觀望，但在我們評估時是積極的觀望。

We have these projects that are not required.

我們有這些不需要的項目。

But we feel as the business -- as our business continues to grow and we want to improve our position in the market, that we have some very good projects to do.

但我們覺得作為企業——隨著我們的業務不斷增長，我們希望提高我們在市場上的地位，我們有一些非常好的項目要做。

But you have to have a return on those investments, and that's what we're monitoring and calibrating around.

但是您必須從這些投資中獲得回報，這就是我們正在監控和校準的內容。

Certainly, projects that have that 1- to 2-year payback even in lower margin environment, we will continue to move forward with.

當然，即使在利潤率較低的環境下也能在 1 到 2 年內收回投資的項目，我們將繼續推進。

And there are some of those that have been on the drawing board and deferred.

還有一些已經在繪圖板上並被推遲了。

And then there are larger projects that are more transformational that, given our view of the growing market and particularly where we have a competitive advantage on low carbon, we do expect to be moving forward on some of those as well.

還有一些更具變革性的大型項目，鑑於我們對不斷增長的市場的看法，特別是在我們在低碳方面具有競爭優勢的情況下，我們確實希望在其中一些方面取得進展。

Got it.

知道了。

And the last question is just now that we're several quarters into you folks having a Midwest facilities, can you just talk about the export market in general as it relates to your overall business in terms of gallons?

最後一個問題是，現在我們已經了解了你們擁有中西部設施的幾個季度，你們能不能談談一般的出口市場，因為它與你們的整體業務有關，以加侖計？

Perhaps, just qualitatively or quantitatively would be more helpful.

也許，只是定性或定量會更有幫助。

But just over the past couple of quarters, are you seeing greater levels of export?

但就在過去幾個季度，您是否看到出口水平更高？

You always mention that as more of an industry dynamic but specific to Pacific Ethanol.

您總是提到這更像是一種行業動態，但特定於太平洋乙醇。

Can you just talk about your percent of production that's being exported, if any?

如果有的話，你能談談你出口的生產百分比嗎？

Sure.

當然。

It's a small percent.

這是一個很小的百分比。

Our plants, even in Midwest, particularly in Illinois, continue to be well positioned for domestic use along the barge system in Illinois and unit trains as well.

我們的工廠，即使是在中西部，尤其是伊利諾伊州，也繼續為伊利諾伊州的駁船系統和單元列車的國內使用做好準備。

In Nebraska, that is our one facility where we spread well to the Gulf and our position for exports.

在內布拉斯加州，這是我們很好地擴展到海灣地區和我們的出口地位的一個設施。

Good question because we just did finally get not only our DSP finalized there, which is required for export in the undenatured ethanol.

好問題，因為我們最終不僅在那裡最終確定了我們的 DSP，這是出口未變性乙醇所必需的。

That is -- about half of all the exports are that, sort of play in that market.

也就是說——大約一半的出口是在那個市場上發揮作用的。

It's important to have the capability.

擁有能力很重要。

We have it.

我們有它。

And next week, we'll be shipping our first train up for export, unit train.

下週，我們將運送我們的第一列出口火車，單元火車。

And our next question comes from the line of Craig Irwin of Roth Capital Partners.

我們的下一個問題來自 Roth Capital Partners 的 Craig Irwin。

Most of my questions have been asked, but I do have 2 that have not yet been addressed on the call.

我的大部分問題都被問到了，但我確實有 2 個問題尚未在電話會議中得到解決。

So the first is, Kinergy.

所以第一個是Kinergy。

In the past, falling prices you called out as tailwinds.

在過去，你稱之為順風的價格下跌。

I think there has been a couple of quarters where that was a negative contribution to the overall profitability of the company.

我認為有幾個季度對公司的整體盈利能力產生了負面影響。

With the rising energy prices, obviously bullish ethanol prices, have you seen any benefit materialize your Kinergy as far as profit contribution in the quarter?

隨著能源價格上漲，乙醇價格明顯看漲，就本季度的利潤貢獻而言，您是否看到您的 Kinergy 有任何好處？

And then the second part of Kinergy is, ICP, should we continue to think about sort of similar profit profile as those assets are fully integrated?

然後 Kinergy 的第二部分是，ICP，我們是否應該繼續考慮與這些資產完全整合的類似利潤狀況？

In answer to your question, we really didn't see in the quarter much of a rising price.

在回答您的問題時，我們在本季度確實沒有看到價格上漲幅度很大。

We saw a drop in corn prices, and that's where we saw some -- primarily where we saw the margin improvement.

我們看到玉米價格下跌，這就是我們看到的一些地方——主要是我們看到利潤率提高的地方。

What we've found in our Kinergy businesses is that it's obviously very valuable as a marketer for our assets, the other assets that we market for, and trading around those assets.

我們在 Kinergy 業務中發現的是，作為我們的資產、我們營銷的其他資產以及圍繞這些資產進行交易的營銷商，它顯然非常有價值。

We have a number of areas sort of pure trading, where I'd say the whole industry has been challenged.

我們有一些純粹的交易領域，我想說整個行業都受到了挑戰。

And you will see in our Q when it comes out that Kinergy actually had $750,000 of net loss.

你會在我們的 Q 中看到 Kinergy 實際上有 750,000 美元的淨虧損。

So if it actually had broken even or make money, it would have put us into -- from the breakeven position we were to profitable.

因此，如果它真的實現了盈虧平衡或盈利，它會讓我們進入 - 從盈虧平衡的位置到盈利。

So it's still a very important and valuable asset.

所以它仍然是非常重要和寶貴的資產。

And you're right, as prices increase, we're able to monetize that.

你是對的，隨著價格的上漲，我們能夠將其貨幣化。

But we're actually taking a pretty hard look at the third-party aspect of our Kinergy trading business.

但我們實際上正在認真研究我們 Kinergy 交易業務的第三方方面。

And maybe backing out some markets has become very, very competitive in some areas.

也許退出某些市場在某些領域已經變得非常非常有競爭力。

And again, where it adds value trading around our assets, we're very committed to that business and growing that business.

再一次，它增加了圍繞我們資產交易的價值，我們非常致力於該業務並發展該業務。

But we're looking at allocating it differently to make sure that Kinergy, which has always been profitable for us, will continue to be so.

但我們正在考慮以不同的方式分配它，以確保一直為我們盈利的 Kinergy 將繼續如此。

In terms of your -- the ICP question, I'm not sure I understood.

就您的 ICP 問題而言，我不確定我是否理解。

I mean, Kinergy is the marketer of the fuel ethanol for all of the company in the higher alcohol.

我的意思是，Kinergy 是高級酒精公司所有燃料乙醇的營銷商。

ICP has its own brand, has its own name, and we've maintained ICP as the marketer for the nonfuel ethanol.

ICP有自己的品牌，有自己的名字，我們一直維持ICP作為非燃料乙醇的營銷商。

Okay, okay.

好吧好吧。

So then second question I had is really about China.

那麼我的第二個問題是關於中國的。

So this year, I wondered if the headwinds on the market has been the absence of DDG sales into China and the absence of significant Chinese imports, and of course, some minor smuggling.

所以今年，我想知道市場上的不利因素是否是缺乏對中國的 DDG 銷售和大量的中國進口，當然還有一些小規模的走私。

Looking at the macro, the percentage of arable land that China has and the significant population they have points to them being a very strong customer for U.S. agriculture over the next decades, and they are not short-term players.

從宏觀上看，中國擁有的耕地比例和龐大的人口表明，中國在未來幾十年是美國農業的一個非常強大的客戶，而且他們不是短期參與者。

People had sit down with Branstad, our ambassador over there, acknowledged that this is something that's top of mind, getting ethanol as a U.S. export through China.

人們與我們在那邊的大使布蘭斯塔德坐下來，承認這是最重要的事情，將乙醇作為美國的出口產品通過中國。

Can you maybe comment maybe from your position at RFA or maybe from your own direct interactions running specific ethanol, how you see China potentially shaping up as a customer?

您能否從您在 RFA 的職位或您自己使用特定乙醇的直接互動發表評論，您如何看待中國可能成為客戶的方式？

And what this is likely to mean given your unique geography being significantly weighted towards West Coast and some of the margins that would be impacted by additional demand going West?

鑑於您獨特的地理位置顯著偏向西海岸，以及一些將受到西部額外需求影響的利潤，這可能意味著什麼？

China, obviously, is a huge market for all products, including the agricultural and fuel.

顯然，中國是所有產品的巨大市場，包括農產品和燃料。

And as I said earlier, we are hearing that they may be stepping back in on the ethanol side.

正如我之前所說，我們聽說他們可能會重新介入乙醇方面。

Then we've all heard their ambitious objective to have 10% ethanol by 2020.

然後我們都聽說了他們雄心勃勃的目標，即到 2020 年實現 10% 的乙醇。

As it relates to -- so that's very encouraging after being out of the market this whole year.

正如它所涉及的 - 所以在整年退出市場後，這是非常令人鼓舞的。

In the case of DDGs, the world is protein-short, China is protein-short.

就 DDG 而言，世界蛋白質短缺，中國蛋白質短缺。

Agree that given their limits to land and water, that importing our DDGs makes sense.

同意鑑於他們對土地和水的限制，進口我們的 DDG 是有道理的。

But it's just -- they're very hard to predict.

但這只是——它們很難預測。

China is a wildcard.

中國是通配符。

But I would say the fundamentals would suggest that they should be importing U.S. ethanol, and they should be importing DDGs.

但我想說，基本面表明他們應該進口美國乙醇，他們應該進口 DDG。

Having said, they have tariffs on both.

話雖如此，他們對兩者都有關稅。

And how that plays out, we'll just have to watch.

至於結果如何，我們只能拭目以待。

But fundamentally, with the growing market that they represent on all these products, it should be encouraging to see some development in that regard.

但從根本上說，隨著他們在所有這些產品上所代表的市場不斷增長，看到這方面的一些發展應該是令人鼓舞的。

(Operator Instructions) And I'd like to turn the call back over to Mr. Neil Koehler for his closing remarks.

（操作員說明）我想將電話轉回給 Neil Koehler 先生，以完成他的閉幕詞。

Thank you.

謝謝你。

Suzanne, thank you, and thank you to everyone for joining us today and your continued support of Pacific Ethanol, and we look forward to speaking with you next quarter.

Suzanne，謝謝大家，感謝大家今天加入我們以及您對 Pacific Ethanol 的持續支持，我們期待在下個季度與您交談。

Have a great day.

祝你有美好的一天。

Thank you.

謝謝你。

Ladies and gentlemen, this does conclude 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 all now disconnect.

你們現在都可以斷開連接了。