The US based bio-refining company, Gtl Resources (LON:GTL), announced today its trading results for the half year period ending March 2010. The results have reportedly exceeded company expectations in comparison to the first half year outcome. The improvement was principally a result of higher commodity margins and excellent operational performance, the report said. The CEO of GTL, Richard Ruebe, commented:
"We are extremely pleased with GTL's robust financial performance. Net borrowings at the subsidiary company level have been reduced by approximately $17 million since September 2009. Currently, although commodity margins in the US ethanol industry have declined recently, market margins are above year ago levels. We still expect that overall US ethanol industry capacity utilization (demand versus supply) will steadily increase as transportation fuel blenders will be gradually increasing their ethanol usage to meet the requirements of the recently finalized Renewable Fuels Standard (RFS2)."
GTL is a project development company, which has historically focused on the development of projects relating to alternative fuels. In 2005 utilising its contacts it established an opportunity to participate in the rapidly growing US ethanol market and in September 2005 acquired a controlling interest in IRE. GTL's 85% initial interest in IRE was acquired through its wholly owned subsidiary, GTL Resources USA Inc. As part of the expansion fund raising GTL's interest in IRE has increased to 87%.
