GTL Resources PLC (AIM: GTL.L), the US based bio-refining company which produces ethanol from corn and other feedstocks, announced record performance at its subsidiary Illinois River Energy (IRE) for the month of December 2009.
IRE operates a 100 million gallon per annum (mgpa) ethanol production facility in Illinois USA. In December 2009, IRE sold a record 9.8 million gallons of ethanol and 24.2 thousand tons of dried distillers grains with solubles.
According to the Company, US industry supply and demand dynamics continue to improve. Initial estimates reflect an overall 2009 US ethanol demand of approximately 10.7 billion gallons, yielding an industry capacity utilization rate of c. 83%. Looking forward, industry experts forecast ethanol demand for 2010 to be approximately 12.1 billion gallons.
With the recent commodity margin rally in the ethanol industry coupled with GTL's strong operational performance since September 2009, the Group says that it now expects to report improved results in the second half.
Commenting on the announcement, Group Chief Executive Officer Richard Ruebe said:
"We are extremely pleased with the team at IRE. Since September 2009, the operations team has optimised asset performance and the transactions team has achieved strong commercial results. We have established a new performance benchmark for our organisation and are looking forward to the new year. We continue to evaluate growth opportunities in the ethanol industry, while exploring new technologies that will allow GTL to expand its revenue base."
