Alto Ingredients Inc (ALTO) 2018 Q1 法說會逐字稿

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

女士們，先生們，美好的一天，歡迎來到太平洋乙醇公司。

First Quarter 2018 Financial Results Conference Call.

2018 年第一季度財務業績電話會議。

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

（操作員說明）作為提醒，此通話正在錄音中。

I would now like to turn the conference over to Kirsten Chapman from LHA Investor Relations.

我現在想將會議轉交給 LHA 投資者關係部的 Kirsten Chapman。

Ma'am, you may begin.

女士，您可以開始了。

Thank you, Ashley, and thank you all for joining us today for the Pacific Ethanol First Quarter 2018 Results Conference Call.

謝謝阿什利，感謝大家今天加入我們參加太平洋乙醇公司 2018 年第一季度業績電話會議。

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 the business highlights, and Bryon will provide a summary of the financial and operating results.

Neil 將首先回顧業務亮點，Bryon 將提供財務和運營結果的摘要。

Then, Neil will return to discuss Pacific Ethanol's outlook and open the call for questions.

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 for 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 is available on the company's website at pacificethanol.net.

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.net 上查閱。

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 May 16, the details of which are included in yesterday's press release.

今天的電話重播將持續到 5 月 16 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, May 9. 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在今天 5 月 9 日發布。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 attributable 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 was 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 is now my pleasure to introduce Neil.

現在我很高興介紹尼爾。

Please go ahead, Neil.

請繼續，尼爾。

Thanks, Kirsten, and thank you, everyone, for joining us today.

謝謝，克爾斯滕，謝謝大家今天加入我們。

For the first quarter, net sales were $400 million, up 4% from last year's first quarter.

第一季度，淨銷售額為 4 億美元，比去年第一季度增長 4%。

Total gallons sold were 233 million.

總銷量為 2.33 億加侖。

Production gallons sold were 141 million.

銷售的生產加侖為 1.41 億。

Net loss available to common shareholders was $8.2 million, and adjusted EBITDA was a positive $5.7 million, improving $4.7 million and $7.6 million, respectively, in comparison to last year.

普通股股東可獲得的淨虧損為 820 萬美元，調整後的 EBITDA 為正 570 萬美元，與去年相比分別增加 470 萬美元和 760 萬美元。

Production margins in the ethanol industry during the first quarter improved slightly from the fourth quarter of 2017 but remained compressed as ethanol inventories reached a historic high in early March.

第一季度乙醇行業的生產利潤率較 2017 年第四季度略有改善，但由於乙醇庫存在 3 月初達到歷史高位，因此仍處於壓縮狀態。

Industry fundamentals have improved as inventory levels have declined by 9% since early March and are about 5% below inventory levels at this time last year.

由於庫存水平自 3 月初以來下降了 9%，並且比去年同期的庫存水平低約 5%，行業基本面有所改善。

Gasoline demand is up around 3% year-over-year as we approach the high-demand summer driving season, and ethanol exports have been strong with a quarterly record of 522 million gallons exported in the first quarter.

隨著夏季駕駛需求旺季的臨近，汽油需求同比增長約 3%，乙醇出口強勁，第一季度出口量達到創紀錄的 5.22 億加侖。

Ethanol production rates are running only 1% year-to-year -- year-to-date over last year.

乙醇生產率同比僅增長 1% - 與去年同期相比。

Production margins, while still quite volatile, have improved thus far in the second quarter.

生產利潤率雖然仍然相當不穩定，但在第二季度迄今已有所改善。

Part of the industry's margin volatility arose from escalating trade positioning between China and the U.S., which resulted in additional tariffs placed on U.S. ethanol shipped to China at the beginning of April, halting for now new export business to China.

該行業利潤率波動的部分原因是中美之間不斷升級的貿易頭寸，導致 4 月初對運往中國的美國乙醇徵收額外關稅，暫時停止了對中國的新出口業務。

China had returned in the earlier part of the first quarter as a significant buyer of U.S. ethanol, supporting its announced 10% blending requirements by 2020.

中國在第一季度早些時候重新成為美國乙醇的重要買家，支持其宣布的到 2020 年 10% 的混合要求。

Nonetheless, we remain optimistic that the improved ethanol supply and demand balances will result in continued margin improvement as we enter peak demand season.

儘管如此，我們仍然樂觀地認為，隨著我們進入需求旺季，乙醇供需平衡的改善將導致利潤率持續改善。

We believe that long-term market fundamentals remain strong.

我們認為長期市場基本面依然強勁。

The very compelling blending economics, octane value and carbon-reducing benefits of ethanol will drive higher blend rates in both the U.S. and international markets.

乙醇非常引人注目的混合經濟性、辛烷值和減少碳的好處將推動美國和國際市場上更高的混合率。

We are actively working with the entire industry to achieve RVP parity for higher ethanol blends.

我們正在積極與整個行業合作，以實現更高乙醇混合物的 RVP 平價。

We have gained support from the Trump administration to remove the arbitrary restrictions on the blending of E15 in many markets during the summer.

我們已獲得特朗普政府的支持，以取消夏季在許多市場對 E15 混合的任意限制。

In the summer months, it will encourage year-round increases in the blending of E15.

在夏季，它將鼓勵 E15 的混合全年增加。

This was reaffirmed as recently as yesterday at a White House meeting.

就在昨天的白宮會議上，這一點得到了重申。

We firmly believe the EPA has the legal authority to make this change and anticipate that rulemaking will be initiated in the near future.

我們堅信 EPA 擁有做出這一改變的法律權力，並預計將在不久的將來啟動規則制定。

International demand for U.S. ethanol set records in 2017, and 2018 is on a pace to exceed that.

國際對美國乙醇的需求在 2017 年創下紀錄，2018 年有望超過這一數字。

Increasingly, more countries are importing ethanol from the U.S. as it is a low-cost source of high octane and low-carbon transportation fuel.

越來越多的國家從美國進口乙醇，因為它是高辛烷值和低碳運輸燃料的低成本來源。

Most recently, Japan announced its intention to allow U.S. ethanol to meet up to 44% of a total estimated annual demand of 217 million gallons of ethanol used to make ETBE or the equivalent of approximately 100 million gallons of U.S.-produced ethanol annually.

最近，日本宣布打算讓美國乙醇滿足用於製造 ETBE 的 2.17 億加侖乙醇的估計年總需求量的 44%，或相當於美國每年生產的約 1 億加侖乙醇。

Carbon values in our California and Oregon markets are gaining strength.

我們加利福尼亞和俄勒岡市場的碳價值正在增強。

This results in continued and growing premiums for our lower-carbon ethanol.

這導致我們的低碳乙醇溢價持續增長。

In California, we are seeing prices above $150 per metric ton of carbon.

在加利福尼亞，我們看到每公噸碳的價格超過 150 美元。

Earlier this year, the California Air Resources Board announced changes to extend and increase carbon reduction requirements by refiners through 2030, requiring them to reduce carbon levels to 20% below 2010 levels.

今年早些時候，加州空氣資源委員會宣布將煉油廠的碳減排要求延長和提高到 2030 年，要求他們將碳水平降低到比 2010 年水平低 20%。

Carbon prices have risen steadily over the last year, more than double where they were in 2017.

碳價格在去年穩步上漲，是 2017 年的兩倍多。

Further, we are also seeing improved carbon prices in Oregon, with carbon values now reaching above $60 per metric ton for our lower-carbon intensity-rated ethanol produced at our Oregon facility.

此外，我們還看到俄勒岡州的碳價格有所提高，我們在俄勒岡工廠生產的低碳強度等級乙醇的碳值現在達到每公噸 60 美元以上。

During this period of tight production margins, our focus remains on implementing initiatives and investing in our assets to reduce our cost, improve our yields and carbon scores and build our long-term value.

在這個生產利潤緊張的時期，我們的重點仍然是實施計劃和投資我們的資產，以降低我們的成本、提高我們的產量和碳分數並建立我們的長期價值。

We are engaged in several plant-level capital projects with near-term paybacks, increasing output of high-value products like corn oil, corn gluten meal and yeast, and working with our ingredient suppliers to reduce cost and increase ethanol yields.

我們參與了幾個具有近期回報的工廠級資本項目，增加了玉米油、玉米蛋白粉和酵母等高價值產品的產量，並與我們的原料供應商合作以降低成本並提高乙醇產量。

Our July 2017 acquisition of ICP provided us with important increased product diversification by way of high-quality alcohol products that support stronger margins and lessen our exposure to commodity price fluctuations in the fuel ethanol markets.

我們在 2017 年 7 月收購 ICP，通過高品質酒精產品為我們提供了重要的產品多樣化，這些產品支持更高的利潤率並減少了我們在燃料乙醇市場中商品價格波動的風險。

The integration of ICP is on track to achieve our goal of $4.5 million in annualized cost synergies.

ICP 的整合有望實現我們 450 萬美元的年度成本協同效應目標。

The 3.5 megawatt cogeneration project at our Stockton, California facility has not yet achieved continued commercial operations.

我們位於加利福尼亞州斯托克頓的 3.5 兆瓦熱電聯產項目尚未實現持續商業運營。

The 2 generating units have performed intermittently since February and remained under the care of the manufacturer, who's working diligently to achieve final completion.

2 台發電機組自 2 月份以來一直在間歇運行，一直在製造商的照料下，他們正在努力工作以實現最終完工。

We expect the systems to be fully operational at a target performance level at the beginning of the third quarter.

我們預計這些系統將在第三季度初以目標性能水平全面運行。

In terms of our previously announced plant improvement initiatives, the installation of the solar power system at Madera is progressing, and we expect to be in full electricity production starting in the third quarter.

就我們之前宣布的工廠改進計劃而言，馬德拉太陽能係統的安裝正在進行中，我們預計將從第三季度開始全面發電。

This should reduce our utility cost by approximately $1 million annually.

這將使我們的公用事業成本每年減少約 100 萬美元。

Airgas has begun construction of a CO2 plant at our Stockton facility, which is expected to be online and producing revenue for us in the fourth quarter.

Airgas 已開始在我們的斯托克頓工廠建設二氧化碳工廠，預計該工廠將在第四季度上線並為我們帶來收入。

Finally, we continue to produce commercial levels of cellulosic ethanol at our Stockton plant.

最後，我們繼續在斯托克頓工廠生產商業水平的纖維素乙醇。

However, due to delays in EPA approval of our cellulosic ethanol pathways for our Madera and Magic Valley plants, we have paused cellulosic ethanol production there.

然而，由於 EPA 延遲批准我們的 Madera 和 Magic Valley 工廠的纖維素乙醇途徑，我們已暫停在那裡生產纖維素乙醇。

We expect the issue will be resolved soon.

我們預計該問題將很快得到解決。

With that, I will turn the call over to our CFO, Bryon McGregor.

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。

Thank you, Neil.

謝謝你，尼爾。

For the first quarter 2018 compared to the first quarter of 2017, net sales were $400 million, up from $386 million due to an increase of 6.5 million gallons sold and partially offset by a $0.05 per gallon decline in our average sales price per gallon.

與 2017 年第一季度相比，2018 年第一季度的淨銷售額為 4 億美元，高於 3.86 億美元，原因是銷量增加了 650 萬加侖，部分被我們每加侖平均銷售價格下降 0.05 美元抵消。

Gallons sold for the quarter totaled $232.7 million, reflecting a 25.8 million gallon increase in production gallons, partially offset by a 19.3 million gallon decline in third-party gallons.

本季度銷售的加侖總量為 2.327 億美元，反映出產量增加了 2580 萬加侖，部分被第三方加侖減少 1930 萬加侖所抵消。

The increase in production gallons sold is due primarily to the addition of ICP's production volumes and the reduction in third-party gallons.

銷售的生產加侖數的增加主要是由於 ICP 產量的增加和第三方加侖數的減少。

This reduction resulted from our deliberate efforts to focus our third-party ethanol, where we have a strong third presence around our production assets.

這種減少是由於我們刻意努力專注於我們的第三方乙醇，我們在我們的生產資產周圍擁有強大的第三方存在。

Gross profit for the quarter was $3.4 million, a $9.1 million improvement, resulting from sales of higher-margin products and better California carbon credit values.

本季度的毛利潤為 340 萬美元，增加了 910 萬美元，這是由於銷售利潤率更高的產品和加州碳信用值更好。

Despite this improvement, our operating margin was negatively impacted by $2.6 million in higher-than-expected repairs and maintenance expense at our Pekin, Illinois wet mill facility.

儘管有所改善，但我們在伊利諾伊州北京的濕磨工廠的維修和維護費用高於預期，對我們的營業利潤率產生了負面影響，即 260 萬美元。

As previously noted, we have experienced larger-than-anticipated expenses since the second half of 2015 related initially to the repair and then to the replacement of the 2 package boilers that failed shortly prior to our acquisition of Aventine.

如前所述，自 2015 年下半年以來，我們經歷了超出預期的費用，最初與維修有關，然後與我們收購 Aventine 前不久發生故障的 2 台成套鍋爐的更換有關。

The $2.6 million spent in Q1 were related to the installation and start-up of the 2 new boilers.

第一季度花費的 260 萬美元與 2 台新鍋爐的安裝和啟動有關。

The installation is now complete, and we are in the process of demobilizing the 5 rental boilers that provided steam on an interim basis.

安裝現已完成，我們正在拆除 5 台臨時提供蒸汽的租賃鍋爐。

Q2 cost of goods sold will include the final cost associated with these boilers and is expected to total approximately $2 million.

第二季度的商品銷售成本將包括與這些鍋爐相關的最終成本，預計總額約為 200 萬美元。

With the boiler issues largely behind us, we look forward beginning Q3 to the elimination of the wet boiler expenses, which totaled $11 million in 2017.

由於鍋爐問題已基本過去，我們期待從第三季度開始消除濕鍋爐費用，2017 年總計 1100 萬美元。

SG&A expenses were $9.3 million compared to $5.5 million and included expenses related to the operation of ICP that were not present in last year's quarter.

SG&A 費用為 930 萬美元，而去年同期為 550 萬美元，其中包括與 ICP 運營相關的費用，這些費用在上一季度沒有出現。

As a reminder, the prior year also included $3.6 million in onetime gains from legal matters.

提醒一下，上一年還包括從法律事務中獲得的 360 萬美元的一次性收益。

We continue to expect SG&A expenses of $34 million for the full year of 2018 as the first quarter usually contains expenses related to the 2017 year-end compliance and audit matters as well as higher payroll taxes that are expected to be lower in the remaining 3 quarters of 2018.

我們繼續預計 2018 年全年的 SG&A 費用為 3400 萬美元，因為第一季度通常包含與 2017 年年底合規和審計事項相關的費用，以及預計剩餘 3 個季度會降低的更高工資稅2018 年。

Adjusted EBITDA was positive $5.7 million compared to negative $1.9 million in the year-ago period.

調整後的 EBITDA 為正 570 萬美元，而去年同期為負 190 萬美元。

Turning to our balance sheet.

轉向我們的資產負債表。

Cash and cash equivalents were $57.4 million at March 31, 2018, compared to $49.5 million at December 31, 2017.

截至 2018 年 3 月 31 日，現金和現金等價物為 5740 萬美元，而 2017 年 12 月 31 日為 4950 萬美元。

For the first quarter of 2018, our capital expenditures totaled $4.4 million, primarily related to plant improvement initiatives, in line with guidance.

2018 年第一季度，我們的資本支出總額為 440 萬美元，主要與工廠改進計劃有關，符合指導方針。

We continue to expect our 2018 capital expenditures will be level with our 2017 expenditures.

我們繼續預計 2018 年的資本支出將與 2017 年的支出持平。

However, as noted in our previous call, we will adjust the amount based on industry economics and company performance.

但是，正如我們之前的電話會議所述，我們將根據行業經濟和公司業績調整金額。

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。

As I stated at the beginning of the call, we believe 2018 will be stronger than 2017.

正如我在電話會議開始時所說，我們相信 2018 年將比 2017 年更強勁。

The fundamentals of long-term growth and demand for ethanol supported by octane value and the carbon and cost-reducing benefits of ethanol remain firm.

由辛烷值支撐的乙醇長期增長和需求的基本面以及乙醇的碳和成本降低優勢仍然穩固。

Our goal is to capitalize on the demand and positive momentum in our markets, and we are keenly focused on extracting and maximizing value from all our assets through a combination of improved efficiencies and lower operating costs.

我們的目標是利用市場的需求和積極的勢頭，我們非常專注於通過提高效率和降低運營成本來從我們所有的資產中提取和最大化價值。

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

有了這個，阿什利，我想打開問題的電話。

(Operator Instructions) Our first question comes from Eric Stine of Craig-Hallum.

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

So I just wanted to start.

所以我只想開始。

Maybe I'll start with just the regulatory environment since it's pretty current from yesterday.

也許我會從監管環境開始，因為它從昨天開始就很流行。

But -- so a lot of noise, obviously, on the E15 waiver -- or the RVP waiver, but also talks of potentially export volumes coming towards RINs.

但是 - 顯然，在 E15 豁免或 RVP 豁免方面有很多噪音，而且還談到了潛在的 RIN 出口量。

Just curious how you think this whole thing plays out.

只是好奇你如何看待這整件事。

And those 2 items, I mean, how do you view that?

那兩個項目，我的意思是，你怎麼看？

Is that -- are those 2 kind of a wash?

那是——那兩種是洗的嗎？

Or is that export volume potential -- potentially will be putting in place, does that hurt?

還是出口量的潛力——可能會到位，這會傷害嗎？

It's a bad policy and a bad precedent.

這是一個糟糕的政策和一個糟糕的先例。

I will say that from my understanding of the meetings yesterday, there was broad agreement and consensus as there has been for some time now that we need to move forward on RVP parity for higher blends.

我會說，根據我對昨天會議的理解，已經達成了廣泛的共識和共識，因為一段時間以來，我們需要推進 RVP 平價以實現更高的混合。

As I stated in the prepared remarks, we do believe that, that rulemaking will be initiated soon.

正如我在準備好的評論中所說，我們確實相信，很快就會開始製定規則。

There was no agreement on the attaching RINs to export volumes.

沒有就出口量附加 RIN 達成一致。

And I can tell you that there is a broad consensus in the agricultural and biofuels community that, that is a nonsensical and terrible idea.

我可以告訴你，農業和生物燃料界有一個廣泛的共識，這是一個荒謬和可怕的想法。

It's, first of all, not legal.

首先，這是不合法的。

The RFS is very explicit about supporting domestic demand for renewable fuels, not exports.

RFS 非常明確地支持國內對可再生燃料的需求，而不是出口。

Our exports are already the most competitively priced fuel component, an octane component in the market, and attaching the RIN essentially is an indirect subsidy to something that does not need to be subsidized and will also result, we believe, in retaliatory trade action, which will hurt farmers and hurt the ethanol industry.

我們的出口產品已經是價格最具競爭力的燃料成分，是市場上的辛烷值成分，附加 RIN 本質上是對不需要補貼的東西的間接補貼，而且我們認為還會導致報復性貿易行動，這會傷害農民，傷害乙醇產業。

It's also true that if you're attaching RINs to export volume, that's going to take away the incentive to increase the demand for the higher blends, which the program is intended to do.

同樣，如果您將 RIN 附加到出口量，這將消除增加對更高混合物的需求的動力，而該計劃旨在做到這一點。

So we are optimistic that the RVP will move forward.

因此，我們對 RVP 將向前推進持樂觀態度。

We are also optimistic that the notion that we would attach RINs to export volumes is a nonstarter.

我們也樂觀地認為，將 RIN 附加到出口量的想法是行不通的。

Yes, that would seem pretty unlikely.

是的，這似乎不太可能。

It seems pretty unlikely.

這似乎不太可能。

Maybe just turning to your corn purposes.

也許只是轉向你的玉米目的。

I mean, it seems -- and it seemed like you've consistently done this, where you outperformed on your purchases, potentially buying them forward.

我的意思是，看起來——而且你似乎一直在這樣做，你在購買方面表現出色，可能會向前購買。

Curious on that.

對此感到好奇。

How far out you're typically able to go?

你通常能走多遠？

Or is it more of just a quarter -- a quarterly thing that you're able to put on?

或者它只是一個季度——一個你能夠穿上的季度的東西？

We try when the pricing reaches a point that we find to be attractive.

當定價達到我們認為有吸引力的點時，我們會嘗試。

We will go out for some number of months at a time with forward basis purchases, and today is no exception.

我們將一次進行幾個月的遠期購買，今天也不例外。

We have some pretty decent positions on -- in the Midwest.

我們在中西部有一些相當不錯的職位。

We've been a little more cautious out West.

在西部，我們更加謹慎。

There has been some freight issues that have -- and high demand for exports that for grain, corn and soybeans that has actually caused some spike in the freight costs and the basis for our West Coast plants.

有一些貨運問題——以及對穀物、玉米和大豆的出口需求高，實際上導致貨運成本和我們西海岸工廠的基礎有所飆升。

So we have less coverage on there.

所以我們在那裡的報導較少。

I think our patience is paying off.

我認為我們的耐心正在得到回報。

We're starting to see the transportation ease and the basis in those premiums coming down.

我們開始看到交通便利和這些保費的基礎下降。

So probably a little closer to market than we typically would be at this time of the year.

所以可能比我們通常在一年中的這個時候更接近市場。

But we do believe that with farmers coming out of the fields after planting a great crop, that we should see an opportunity to pick up some additional attractively priced basis.

但我們確實相信，隨著農民在種下大豐收後走出田間，我們應該看到機會獲得一些額外具有吸引力的價格基礎。

Okay, got it.

好，知道了。

Maybe just last one for me on distillers grains.

也許對我來說只是酒糟上的最後一個。

Obviously, first quarter pricing picked up nicely.

顯然，第一季度的價格上漲得很好。

Just thoughts on maybe the trends there.

只是想想那裡的趨勢。

And just can you remind me how you're structured there?

你能提醒我你在那裡的結構嗎？

If I remember correctly, you've got a decent amount under fixed contracts.

如果我沒記錯的話，你在固定合同下有一筆可觀的金額。

So maybe you're not fully seeing the impact and potentially you will down the road?

所以也許你沒有完全看到影響，你可能會在路上？

Yes, that's a fair assessment.

是的，這是一個公平的評價。

We do sell forward distillers grains and that market, as you mentioned, has been coming up very nicely.

我們確實出售遠期酒糟，正如你所提到的，這個市場發展得非常好。

And the spot values are at higher levels than the increments that we have contracted.

現貨價值高於我們收縮的增量。

But we still also have quite a bit that's open.

但我們仍然有相當多的開放空間。

So a combination of having some fixed positions, but we -- across the whole, a portfolio have more open than is contracted.

因此，有一些固定頭寸的組合，但我們 - 總體而言，投資組合的開放程度高於合同規定的程度。

So we are benefiting from that.

所以我們從中受益。

Proteins are very strong, very tight.

蛋白質非常強，非常緊。

Soybean meal has been a very expensive distillers grain, essentially right along with the other proteins.

豆粕是一種非常昂貴的酒糟，基本上與其他蛋白質一樣。

And a year ago, we were selling distillers grains at a discount to corn.

一年前，我們以低於玉米的價格出售酒糟。

We're now selling distillers grains at a nice premium to corn.

我們現在以比玉米高的價格出售酒糟。

Our coproduct return, as you can see from our published results, has improved over the quarter.

從我們公佈的結果中可以看出，我們的副產品回報率在本季度有所改善。

It's also particularly beneficial at our wet mill, where we have a higher coproduct return to begin with and a higher focus on high-protein sales.

這對我們的濕法工廠也特別有利，我們從一開始就有更高的副產品回報，並且更加關注高蛋白銷售。

We're seeing some added benefit there as well.

我們在那裡也看到了一些額外的好處。

Our next question comes from Carter Driscoll of B. Riley.

我們的下一個問題來自 B. Riley 的 Carter Driscoll。

So just to follow-up, there's just a lot of noise yesterday coming out of the news, the media, even some contradictive -- contradictory comments coming out of various congressional parties in the White House.

因此，只是為了跟進，昨天新聞和媒體發出了很多噪音，甚至白宮各國會政黨發表了一些自相矛盾的評論。

I mean, Cruz tweeting a win-win and Trump very kind of cipherously saying it's going to be the last meeting on the RFS, what is your take?

我的意思是，克魯茲在推特上發布了雙贏的消息，而特朗普非常謹慎地說這將是 RFS 的最後一次會議，你怎麼看？

I mean, I still feel like there's a lot of misinformation out in the marketplace today.

我的意思是，我仍然覺得今天市場上有很多錯誤信息。

Obviously, the RFS has established loss, so there's the legal precedent there.

顯然，RFS 已經確立了損失，所以那裡有法律先例。

Obviously, attaching RINs to the export market would throw it in disarray and probably cause RIN prices to plummet and really throw, I would argue, the export markets into, I guess, you said, potentially not make it the low-cost supplier that we are today.

顯然，將 RIN 附加到出口市場會使其陷入混亂，並可能導致 RIN 價格暴跌，我認為，出口市場真的會進入，我猜，你說，可能不會使其成為我們的低成本供應商是今天。

Kind of just give me your thoughts about how you think this plays out and under what time frame.

請告訴我你的想法，你認為這會如何以及在什麼時間範圍內發揮作用。

Or how it gets resolved to the point that you can move more towards to parity, as you've been talking about, as the natural evolution in this marketplace.

或者它是如何解決的，以至於你可以更接近平等，正如你一直在談論的那樣，作為這個市場的自然演變。

Well, we have a President who has been consistently supportive of ethanol from before he was President.

好吧，我們有一位總統，他在擔任總統之前就一直支持乙醇。

Very strongly so during the campaign and has been consistently in support since then.

在競選期間非常強烈，並且從那時起一直得到支持。

There's an EPA that has not necessarily have seen it that way and has been talking about things.

有一個 EPA 不一定這麼看，並且一直在談論事情。

Last summer, Secretary Pruitt was talking about attaching RINs to export volumes.

去年夏天，普魯伊特部長談到將 RIN 附加到出口量。

There have been way too many small refinery financial exemptions granted for companies that are under no financial hardship.

對於沒有財務困難的公司，有太多的小型煉油廠財務豁免。

That's a problem that has not helped demand, that has not helped the clarity around moving this program forward and increasing the demand for renewable fuels.

這是一個無助於需求的問題，也無助於推動該計劃向前發展和增加對可再生燃料的需求。

These meetings do get frustrating because the politics are at a fairly high pitch, and we do see varying opinions.

這些會議確實令人沮喪，因為政治處於相當高的水平，我們確實看到了不同的意見。

What is clear to us is that -- as I was mentioning to Eric, was that there is broad consensus to move forward RVP parity.

對我們來說很清楚的是——正如我向 Eric 提到的那樣，推進 RVP 平價已達成廣泛共識。

And there is no support on the agricultural and biofuel side for attaching RINs to export volumes nor was there an agreement from what we understand.

農業和生物燃料方面沒有支持將 RIN 附加到出口量，也沒有我們理解的協議。

I was not at the meeting, but from the reports that we have gathered, there was no agreement on that point.

我沒有參加會議，但從我們收集的報告來看，在這一點上沒有達成一致。

So that is just such a bad idea.

所以這是個壞主意。

We can't imagine that, that would move forward.

我們無法想像，那會向前發展。

The way this plays out is with the rulemaking.

解決辦法是製定規則。

There's issues in Congress and attempts to longer term look at how the RFS might be repositioned.

國會存在問題，並試圖從長遠來看如何重新定位 RFS。

But as you said, it's existing law.

但正如你所說，這是現行法律。

That is not changing anytime soon.

這不會很快改變。

And the focus now is at the EPA and what they can do through their statutory authority on regulation.

現在的重點是 EPA 以及他們可以通過其法定監管權限做些什麼。

And they have the regulatory authority to give RVP parity to higher blends.

他們擁有監管權力，可以將 RVP 與更高的混合物相提並論。

They also believe they have the regulatory authority to do other things, like attaching RINs to export volumes, but that would have to go through a rulemaking process as well.

他們還認為，他們擁有做其他事情的監管權力，例如將 RIN 附加到出口量，但這也必須通過規則制定過程。

So our hope and expectation is that there will be an RVP rulemaking that will move.

因此，我們的希望和期望是，會有一個 RVP 規則制定會發生變化。

And it will not be moving with export RINs attached, and in our opinion, it might include some transparency on the RIN market.

它不會在附加出口 RIN 的情況下移動，在我們看來，它可能包括 RIN 市場的一些透明度。

We have seen that market come off substantially to where RINs are trading at about $0.30 per RIN yesterday, near a 3-year low.

我們已經看到市場大幅下跌至昨天 RIN 的交易價格約為每 RIN 0.30 美元，接近 3 年低點。

So don't really see that as the problem.

所以不要真的認為這是問題所在。

And as we've said before, and this industry very consistently said, is that the way to deal with RIN prices is to blend more ethanol because we sell ethanol today at close to a $0.60 discount to wholesale gasoline, and you get a free RIN attached to that screaming deal.

正如我們之前所說，而且這個行業一直在說，處理 RIN 價格的方法是混合更多的乙醇，因為我們今天以比批發汽油低 0.60 美元的價格出售乙醇，而且您可以獲得免費的 RIN依附於那份驚天動地的交易。

So let's just get on with the blending of more ethanol, and the economy -- and the agricultural economy and the consumer and the environment will be better for it.

所以讓我們繼續混合更多的乙醇，經濟——農業經濟、消費者和環境都會因此而變得更好。

Okay, all right.

好吧，好吧。

Not to -- again, not to belabor this point, but the exemptions for the small refiners again seems to be also increasingly political.

不——再次，不強調這一點，但小型煉油廠的豁免似乎也越來越政治化。

In particular, if it then shifts back cost of compliance to the larger refiners, which are increasingly getting noisy about it, is there a potential resolution whether it comes in the form of either a legal challenge or maybe just Trump starting to stem the issue, recognizing it could potentially have some negative impact on just the whole structure of the delivery and booking of RINs?

特別是，如果它將合規成本轉回給越來越多的大型煉油廠，那麼是否有一個潛在的解決方案，無論是以法律挑戰的形式還是特朗普開始遏制這個問題，是否認識到它可能會對 RIN 的交付和預訂的整個結構產生潛在的負面影響？

Because hearing word that some of the bigger players are getting concerned that what they have on their balance sheets for that RIN compliance is starting to be devalued.

因為聽說一些較大的參與者開始擔心他們的資產負債表上的 RIN 合規性開始貶值。

Just trying to get your sense of how this issue gets resolved.

只是想了解這個問題是如何解決的。

Yes.

是的。

It gets resolved by the -- Secretary Pruitt and the EPA not handing out small refinery exemptions like candy in a candy jar for companies that don't warrant it.

它由普魯伊特部長和美國環保署解決，沒有向不保證的公司發放小型煉油廠豁免，如糖果罐中的糖果。

So we've seen -- and again, there's -- this is not public information.

所以我們已經看到 - 再一次，有 - 這不是公開信息。

But what we can piece together, it looks like it could be as much as 1.6 billion gallons of obligation that have been exempted.

但我們可以拼湊起來，看起來可能有多達 16 億加侖的義務被免除。

It doesn't necessarily mean that those gallons aren't being blended.

這並不一定意味著這些加侖沒有被混合。

But if you piece the numbers together from the EPA data, it does appear that, that kind of demand has been lost relative to the RVOs.

但是，如果您將 EPA 數據中的數字拼湊在一起，那麼相對於 RVO 而言，這種需求似乎已經消失了。

And that is demand that needs to come back to the ethanol industry and the agricultural economy and need to start by not exempting these refiners that don't warrant them.

這就是需要回到乙醇行業和農業經濟的需求，並且需要首先不免除這些不保證它們的煉油廠。

There is legal challenges that have already been brought by Bio.

Bio已經帶來了法律挑戰。

I think it's quite possible there could be other legal actions brought as well.

我認為很有可能還會提起其他法律訴訟。

The Trump administration, and it was a topic of conversation at the -- from what we understand in the meeting yesterday, it's very well aware of this issue and how harmful it is to the agricultural economy.

特朗普政府，這是一個談話的話題——從我們昨天會議上的理解來看，它非常清楚這個問題以及它對農業經濟的危害。

I appreciate all that color, Neil.

我很欣賞所有這些顏色，尼爾。

Shifting over, can you talk about the expectations of what is the EPA's issues with deploying at Madera and your other facility for cellulosic?

換位思考一下，您能否談談 EPA 對在馬德拉和您的其他纖維素設施進行部署時遇到的問題的期望？

It's hard to understand because a lot of the action out of the EPA has been a little hard to understand under Secretary Pruitt.

這很難理解，因為在普魯伊特部長的領導下，EPA 的許多行動都有些難以理解。

But it appears that there is not a warm embrace of advanced biofuels, and so some concerns have been raised as to pathway applications.

但似乎沒有對先進生物燃料的熱情擁抱，因此對通路應用提出了一些擔憂。

We find that to be curious when our Stockton pathway application was approved and our Madera and Magic Valley are identical with the same Edeniq technology and protocols and approach.

當我們的 Stockton 途徑申請獲得批准並且我們的 Madera 和 Magic Valley 與相同的 Edeniq 技術、協議和方法相同時，我們會感到好奇。

So we believe this is just a delay tactic to hold back the advancement of advanced biofuels.

因此，我們認為這只是阻礙先進生物燃料發展的一種延遲策略。

We're not alone.

我們並不孤單。

There are any number of corn fiber applications that have been held up.

有許多玉米纖維應用被擱置。

In fact, any applications that are in the EPA today are on hold.

事實上，今天在 EPA 中的任何申請都被擱置了。

Again, the White House has been made very aware of this.

同樣，白宮已經非常清楚這一點。

There's been coalition letters and letters from bipartisan folks in Congress complaining about this.

有來自國會兩黨人士的聯合信件和信件抱怨這一點。

And we are getting indications that, that log jam will be broken as well and these pathway applications will be moving forward in the near future.

我們得到的跡象表明，原木堵塞也將被打破，這些路徑應用程序將在不久的將來向前發展。

Okay.

好的。

Maybe a question for you, Bryon.

也許你的問題，布賴恩。

So if I understood correctly, you're going to switch out -- you're going to finally fully decommission the problematical boilers this quarter.

因此，如果我理解正確，您將退出 - 本季度您將最終完全停用有問題的鍋爐。

It will be a hit to COGS this quarter, but it should be fully operating with the new replacement.

本季度它將對 COGS 造成衝擊，但它應該可以在新的替代品下全面運行。

Is there any -- starting in 3Q, is there any recourse you have that has not been already pursued with -- maybe economically for the OEM that -- whose equipment it was that caused this ongoing problem?

是否有任何 - 從第三季度開始，您是否有任何尚未追索的追索權 - 也許對於 OEM 來說經濟上 - 導致這個持續問題的設備是什麼？

Yes.

是的。

So there's actually a lawsuit that's going on.

所以實際上有一場訴訟正在進行中。

We're -- which we're in this deposition phase, and these things take time.

我們 - 我們正處於這個沉積階段，這些事情需要時間。

But we feel like we have a very strong case, and we'll continue to pursue that.

但我們覺得我們有一個非常有力的案例，我們將繼續追求這一點。

And it's significant at this point.

在這一點上很重要。

It was a bit of a discovery as we went along.

我們一路走來，這是一個小小的發現。

So we first repaired them and discovered that, indeed, it was a manufacturing defect.

所以我們首先修復了它們，發現確實是製造缺陷。

So we ultimately had to replace them not -- so as not to put people in danger in the site.

所以我們最終不得不更換它們——以免人們在現場處於危險之中。

So it's definitely not something that we expected to do, but we look forward to having this behind us and be able to move on.

所以這絕對不是我們期望做的事情，但我們期待在我們身後擁有它並能夠繼續前進。

Is there going to be an insurance claim outside of the lawsuit you're in?

在您所參與的訴訟之外，是否會有保險索賠？

There is.

有。

Yes, there is.

就在這裡。

And there were proceeds we received initially against the initial event.

我們最初收到了針對初始事件的收益。

There was only one boiler that exploded, the other one was we brought down just as a -- for security purposes.

只有一個鍋爐爆炸了，另一個是我們為了安全目的而拆除的。

And when we opened it up, we were seeing the same decay and deterioration.

當我們打開它時，我們看到了同樣的腐爛和惡化。

So that does not result in an event that would be insurable.

因此，這不會導致可保事件。

So one of the 2 boilers was covered, and we're in the process of finalizing discussions with our insurer on that.

因此，兩台鍋爐中的一台已被承保，我們正在與我們的保險公司就此進行最終討論。

But then having repaired them and then discover the same event, that is not an insurer event then either.

但是在修復它們之後發現了同樣的事件，那也不是保險事件。

So really have to look more to the OEM to get this thing resolved appropriately.

所以真的必須更多地向 OEM 尋求妥善解決這個問題。

Got it, okay.

明白了，好吧。

Maybe, Neil, so obviously, the trade rhetoric with -- or what's gone on back and forth with China look like a very promising market at least in the short term.

也許，尼爾，很明顯，與中國的貿易言論——或者與中國來來回回的事情看起來至少在短期內是一個非常有前途的市場。

Now how do you see this playing out?

現在你怎麼看這個結果？

Maybe just characterize some of the opportunities and other export markets.

也許只是描述一些機會和其他出口市場。

Obviously, you hit a record last year and a very promising start.

很明顯，你去年創下了紀錄，開局非常有希望。

You're positioning from there your expectations of being able to incrementally ramp exports.

您從那裡定位您對能夠逐步增加出口的期望。

And then I just have one last follow-up.

然後我只有最後一次跟進。

Yes, exports are key.

是的，出口是關鍵。

I mean, it's always the incremental barrel in a commodity market that really drives your supply and demand balances and margin environment.

我的意思是，真正推動您的供需平衡和利潤環境的始終是商品市場中的增量桶。

And in today's market, where we have a relatively flat, although slightly increasing with gasoline demand.

而在今天的市場中，我們的情況相對持平，儘管隨著汽油需求略有增加。

Domestic market growth has been in the exports.

國內市場的增長一直在出口。

And so while China only represented about 10% of total exports in Q1 coming from virtually nothing last year, so that was very promising, and looking like they were going to continue to grow.

因此，雖然中國僅佔第一季度出口總額的 10% 左右，但去年幾乎一無所獲，所以這是非常有希望的，而且看起來它們將繼續增長。

With those gallons coming out of the market, that relatively modest increment has had an impact in the shorter term.

隨著這些加侖從市場上流出，這種相對溫和的增量在短期內產生了影響。

There are other countries that are stepping up, both new countries taking ethanol and existing countries.

還有其他國家正在加緊行動，包括使用乙醇的新國家和現有國家。

There were courses like Brazil, who are taking record quantities, and Canada; increases in South Korea; India.

有像巴西這樣的課程，他們的數量創下歷史新高，還有加拿大；韓國增加；印度。

So we're seeing the growth.

所以我們看到了增長。

I stated last quarter that we anticipated to see 1.6 billion to 1.8 billion gallons of export this year.

我在上個季度說過，我們預計今年的出口量將達到 16 億至 18 億加侖。

I still think that's the right range.

我仍然認為這是正確的範圍。

If China comes back, it could be closer to the higher end of that.

如果中國回來，它可能更接近高端。

But I would say the current expectation, that it's probably on the lower end of that.

但我會說目前的預期，它可能處於低端。

They had a 30% tariff last year, which really did eliminate most of the business with China.

他們去年徵收了 30% 的關稅，這確實消除了與中國的大部分業務。

But given the very compelling price spread with gasoline and ethanol, we were able to clear the market even with that tariff.

但鑑於汽油和乙醇的價差非常引人注目，即使有這樣的關稅，我們也能夠出清市場。

But adding the additional 15% to take it to 45% in today's market is preventing any additional trade, plus the uncertainty as to how long it's going to be on.

但是在今天的市場上增加額外的 15% 以使其達到 45% 會阻止任何額外的交易，以及它將持續多長時間的不確定性。

I do think that China, with their very ambitious program to blend 10% ethanol by 2020, that is the equivalent by then given their very dramatic increase in gasoline demand.

我確實認為，中國有著雄心勃勃的計劃，即到 2020 年混合 10% 的乙醇，考慮到他們對汽油的需求急劇增加，到那時這相當於。

That will be the equivalent of about 4 billion gallons of ethanol.

這相當於大約 40 億加侖乙醇。

They have domestic capacity for just 1 billion.

他們的國內產能僅為 10 億。

So they're going to need, at some point, if they're going to stay on that program.

因此，他們將需要，在某個時候，如果他們要留在該計劃中。

They will continue to need as they build their own ethanol production industry, which, obviously and laudably, is their objective.

他們在建立自己的乙醇生產行業時將繼續需要，這顯然是他們的目標，值得稱讚。

They do have their own corn supplies.

他們確實有自己的玉米供應。

But we think that in the interim, there's a great opportunity as we move to higher blends in the U.S. to continue to support China with exports.

但我們認為，在此期間，隨著我們在美國轉向更高的混合物以繼續支持中國的出口，這是一個很好的機會。

When that starts, is it later this year, is it next, we think it's a matter of not if, but when.

什麼時候開始，是今年晚些時候，還是下一個，我們認為這不是是否，而是何時的問題。

Okay.

好的。

Maybe just the last one for me.

也許對我來說只是最後一個。

Can you give me an update on your -- are you seeing any changes to the potential rollout or expansion, I should say, of E15 at the retail level?

您能否向我提供有關您的最新信息 - 您是否看到 E15 在零售層面的潛在推出或擴展有任何變化？

And/or are you seeing any movement on the front to maybe have some incentive at the federal or state level to do so?

和/或您是否看到前線有任何動議，可能在聯邦或州一級有一些動機這樣做？

Or as the whole kind of RV parity, I don't want to say dispute, but just the machinations that have gone on in the last couple of weeks, has that put a dent in it at all?

或者作為整個 RV 平價，我不想說爭議，但只是過去幾週發生的陰謀，這有什麼影響嗎？

Just trying to get a sense of what the retail environment is relative to kind of last quarter's expectations than the material changes.

只是試圖了解零售環境相對於上一季度的預期而不是實質性變化。

Yes.

是的。

It's -- if it is happening, albeit slower than we all would like to see.

它 - 如果它正在發生，儘管比我們都希望看到的要慢。

But there are close to 1,500 stations today or 1,400, some number such that, growing to closer 2,000 stations by the end of the year.

但是今天有近 1,500 個站點或 1,400 個站點，其中一些數字到今年年底將增長到接近 2,000 個站點。

We believe there's incrementally 50 million to 75 million gallons of ethanol that are being blended in E15 and E85 today.

我們相信，如今在 E15 和 E85 中混合的乙醇增量為 5000 萬至 7500 萬加侖。

So in a domestic market of 14.3 billion gallons, that's not much.

所以在 143 億加侖的國內市場中，這並不算多。

But we think that, that doubles on a run rate by the end of this year.

但我們認為，到今年年底，運行速度會翻一番。

And it's -- like I said before, it'll be a lot like E10 because there's no -- the incentive is there.

而且它 - 就像我之前說的，它會很像 E10，因為沒有 - 激勵是存在的。

The price spread to $0.65 a gallon were cheaper than wholesale gasoline today.

價格差到每加侖 0.65 美元，比今天的批發汽油便宜。

And gasoline is going up, oil is going up.

汽油上漲，石油上漲。

Even more important to be blending more domestic ethanol given what's going on with Iran and internationally to secure our own energy security.

考慮到伊朗和國際上正在發生的事情，以確保我們自己的能源安全，更重要的是混合更多的國內乙醇。

We will see it grow when you have E15 at the retail level.

當您在零售級別擁有 E15 時，我們將看到它的增長。

It's currently selling for close to $0.10 cheaper than the E10.

它目前的售價比 E10 便宜近 0.10 美元。

And consumers are picking up on that, where E15 is being distributed.

消費者正在接受這一點，E15 正在分發。

We're seeing very good volumes at those stores.

我們看到這些商店的銷量非常好。

And even those that didn't necessarily want to blend E15 are starting to blend it.

甚至那些不一定想要混合 E15 的人也開始混合它。

Minneapolis is kind of the Ground Zero right now for E15 with a very large penetration, and we're seeing it grow.

明尼阿波利斯現在是 E15 的歸零地，具有非常大的滲透率，我們看到它在增長。

So it is something that we believe will accelerate.

因此，我們認為這將加速。

And given both the octane needs, carbon reduction and cost benefits of the fuel, it is our firm belief that the market -- over time, the entire market will migrate towards the higher blends.

考慮到燃料的辛烷值需求、碳減排和成本效益，我們堅信市場——隨著時間的推移，整個市場將轉向更高的混合物。

Our next question comes from Sameer Joshi of H.C. Wainwright.

我們的下一個問題來自 H.C. 的 Sameer Joshi。溫賴特。

Most of my questions have been answered, but just a few clarifications.

我的大部分問題都已得到解答，但只是進行了一些澄清。

The D3 RIN for Stockton, that remains in place, right?

斯托克頓的 D3 RIN 仍然存在，對嗎？

There's no issue on that while you work through the Madera and Magic Valley issues?

當你處理馬德拉和魔法谷的問題時，這沒有問題嗎？

That is correct.

那是對的。

Okay.

好的。

And sticking with Stockton, you mentioned that the cogen unit is working intermittently and that you expect it to start by -- in the second half.

堅持斯托克頓，你提到熱電聯產機組間歇性工作，你預計它會在下半年開始。

Are there any plans for the second unit in -- under progress?

是否有第二個單元的計劃——正在進行中？

Or are those on hold at the moment?

還是那些暫時擱置？

Yes.

是的。

We have never initiated any additional plans until we had these fully operational and could verify the performance in terms of energy savings and also to confirm what carbon benefits there were as well.

在我們完全投入運營之前，我們從未啟動任何額外的計劃，並且可以驗證節能方面的表現，並確認還有哪些碳效益。

It is something that we believe will have good application at other plants, Madera in California with -- where we have these very high electricity rates would be the next opportunity.

我們相信這將在加利福尼亞州馬德拉的其他工廠得到很好的應用——我們擁有如此高的電費將是下一個機會。

But for now, we're focused on getting these 2 units up and running and performing at expected levels in Stockton.

但就目前而言，我們專注於讓這兩個單元在斯托克頓啟動並運行並達到預期水平。

Got it.

知道了。

And then another clarification on the boiler issue.

然後是關於鍋爐問題的另一個澄清。

You mentioned there will be a $2 million hit in the COGS in Q2.

您提到第二季度的 COGS 將受到 200 萬美元的打擊。

How does it relate to the $4.4 million CapEx?

它與 440 萬美元的資本支出有何關係？

Like, is it -- can you just clarify those things for me?

比如，是不是——你能幫我澄清一下這些事情嗎？

Yes.

是的。

Because they're showing up as cost of goods sold by a few million versus CapEx.

因為與資本支出相比，它們顯示為幾百萬的商品銷售成本。

The CapEx shows up as where we would capitalize it, and then advertise it over its sustained life.

資本支出顯示為我們將資本化的地方，然後在其持續生命週期內對其進行宣傳。

But because we already have the 2 boilers originally in our capital structure, we didn't write those off.

但是因為我們的資本結構中已經有兩台鍋爐，所以我們沒有把它們註銷。

And so instead, we're now expensing the purchasing and installation of new units as cost of goods sold and repair and maintenance.

因此，我們現在將新設備的購買和安裝費用計為銷售成本以及維修和維護成本。

Okay, understood.

好的，明白了。

And then just one last clarification on the interest payments.

然後是關於利息支付的最後一個澄清。

I see your interest expense is around $4.4 million, $4.5 million this quarter, which is higher than -- sequentially than the previous quarters, whereas the debt has not gone up that much.

我看到您的利息支出約為 440 萬美元，本季度為 450 萬美元，高於前幾個季度的順序，而債務並沒有增加那麼多。

Can you just give some clarity on that?

你能澄清一下嗎？

Yes.

是的。

It just changes.

它只是改變。

Well, there's 2 things.

嗯，有兩件事。

One is the increases in LIBOR rates, and then -- I'm sorry?

一是倫敦銀行同業拆借利率的上漲，然後——對不起？

No.

不。

I meant your LIBOR is different than the LIBOR gap.

我的意思是您的 LIBOR 與 LIBOR 差距不同。

Yes.

是的。

So it's primarily LIBOR, and then we canceled our Aurora -- Pacific Aurora facility.

所以它主要是 LIBOR，然後我們取消了我們的 Aurora - Pacific Aurora 設施。

Just didn't need the facility.

只是不需要設施。

And as a result, any charge that we had for the initiation of that as far as bank fees and the like were taken in as expense on that -- on the quarter.

結果，我們為啟動該計劃而收取的任何費用，例如銀行費用等，都被計入了該季度的費用。

Okay.

好的。

And one last one for me on the OpEx front.

最後一個是我在運營支出方面的。

The $4.5 million savings from the integration of ICP, have those already been realized?

整合 ICP 節省的 450 萬美元，是否已經實現？

Or when do you expect the complete realization of those savings?

或者您預計什麼時候可以完全實現這些節省？

Yes, we're pretty close to that.

是的，我們已經非常接近了。

I would say that for modeling purposes, you should assume that we'll have them fully integrated and seeing the benefits of those in the second half of the year.

我想說，出於建模目的，您應該假設我們將完全集成它們並在下半年看到它們的好處。

Our next question comes from Annapoorni of Roth Capital.

我們的下一個問題來自 Roth Capital 的 Annapoorni。

So just following up on the boiler upgrades.

所以只是跟進鍋爐升級。

I have multiple questions.

我有多個問題。

So just to understand that all the major expenses related to this are compete with Q2 and we can assume that there are no expense going into Q3 and onwards.

因此，只需了解與此相關的所有主要費用都與第二季度競爭，我們可以假設第三季度及以後沒有任何費用。

That's correct.

這是正確的。

All right.

好的。

And can you talk a bit more about if there's a need for the catch-up maintenance and transition expenses related to '17 or ICP plans?

您能否多談談是否需要與 '17 或 ICP 計劃相關的追趕維護和過渡費用？

And just trying to understand how we should look at the financial impact cost-wise going forward on these.

並且只是試圖了解我們應該如何看待這些成本方面的財務影響。

I guess I'd say that we don't have any -- there's just normal maintenance on these facilities now going forward.

我想我會說我們沒有任何設施——這些設施現在只是正常維護。

For the most part, these are -- the ICP facility and the Pekin wet mill are older facilities.

在大多數情況下，這些是——ICP 設施和北京濕磨廠是較舊的設施。

So they do carry a slightly higher cost of goods sold and higher repair and maintenance requirement than do our newer facilities.

因此，與我們的新設施相比，它們的銷售成本和維修和維護要求確實略高。

But that being said, we think that we've addressed the more significant items that needed to be repaired or replaced from the time that we made those acquisitions.

但話雖如此，我們認為我們已經解決了從我們進行這些收購時起需要維修或更換的更重要的項目。

And so now we're more into the maintenance mode.

所以現在我們更多地進入了維護模式。

So they're reflected in our budget, which, Bryon, in his remarks, reaffirmed that our capital budget for 2018 is covering all of that.

因此，它們反映在我們的預算中，Bryon 在他的講話中重申，我們 2018 年的資本預算涵蓋了所有這些。

All right.

好的。

And just looking at the bigger picture and the industry.

只看大局和行業。

So it continues to be fragmented.

所以它仍然是碎片化的。

And from recent announcements, it doesn't look like consolidation is taking place any time soon.

從最近的公告來看，合併似乎不會很快發生。

So what are your thoughts on the industry dynamics?

那麼您對行業動態有何看法？

And how that's going to impact the demand/supply in the industry going forward?

以及這將如何影響行業未來的需求/供應？

Well, from supply/demand, again, we feel that there are arbitrary restrictions on introducing higher blends.

好吧，從供需來看，我們再次認為引入更高的混合物存在任意限制。

We remove those.

我們刪除那些。

Ethanol is such a compelling product to plan that we see an increase in the domestic demand in what is 40% of the world's gasoline market here in the United States.

乙醇是如此引人注目的產品，以至於我們看到美國國內需求增加，佔世界汽油市場的 40%。

You're right about fragmentation.

你是對的碎片。

You're right that consolidation is not happening at the moment.

你是對的，目前沒有發生整合。

We have seen quite a bit of consolidation over the last 5-plus years, but it has stalled out over the last couple.

在過去 5 年多的時間裡，我們看到了相當多的整合，但在過去的幾年裡它已經停滯不前。

We do believe that, ultimately, we have an industry with 6 players controlling roughly 50% of the production, and it will be helpful for 6 players to control closer to 60% or 70%, and we think ultimately that is where we trend.

我們確實相信，最終，我們有一個由 6 個參與者控制大約 50% 的生產的行業，這將有助於 6 個參與者控制接近 60% 或 70%，我們認為最終這就是我們的趨勢。

And -- but in the meantime, we do continue to have a fairly fragmented market that often doesn't act as rationally as you would hope.

而且 - 但與此同時，我們確實繼續擁有一個相當分散的市場，通常不會像您希望的那樣理性行事。

And I'm not showing any further questions in queue at this time.

我目前沒有在隊列中顯示任何其他問題。

I would like to turn the call back to Neil Koehler for any closing remarks.

我想將電話轉回 Neil Koehler 以獲取任何結束語。

Thanks, Ashley, and thank you all for joining us today.

謝謝，Ashley，感謝大家今天加入我們。

We appreciate your continued support of Pacific Ethanol and look forward to speaking with you all soon.

感謝您對 Pacific Ethanol 的持續支持，並期待很快與大家交流。

Have a great day.

祝你有美好的一天。

Ladies and gentlemen, thank you for participating in today's conference.

女士們，先生們，感謝你們參加今天的會議。

This does conclude the program.

這確實結束了程序。

You may all disconnect.

你們都可以斷開連接。

Everyone, have a great day.

大家，有一個美好的一天。