Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on your investment opportunities in the renewable segment, particularly around lowering carbon intensity? A: Bill Krueger, President and CEO, explained that they are awaiting more clarity on the regulatory environment, particularly regarding the 45Q tax credit, which they believe will remain intact. They are deploying capital as needed to prepare for final decisions once more clarity is achieved.
Q: What synergies do you expect from consolidating the M&I and trade groups? A: Bill Krueger noted that the consolidation aims to provide a unified solution from producer to ethanol plant, enhancing operational efficiency and capitalizing on controlling crop inputs through the production cycle.
Q: How did you manage to deliver strong results in the ethanol space despite margin compression? A: Bill Krueger attributed the strong performance to their business model, which maximizes corn originations, co-product sales, and ethanol marketing, allowing them to perform well even when board crush margins are down.
Q: What are the potential impacts of trade tariffs on your business? A: Bill Krueger stated that Andersons is not significantly affected by tariffs due to their domestic focus. They are monitoring tariffs between the US, Canada, and Mexico but do not expect a material impact on 2025 earnings.
Q: Can you provide more details on the integration progress of Skyland Grain? A: Bill Krueger mentioned that the integration is progressing well, with commercial aspects exceeding expectations. Brian Valentine added that they expect Skyland to contribute $30 million to $40 million in EBIT for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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