Pacific Ethanol revises quarterly results

Pacific Ethanol Inc., which operates an ethanol plant in Burley, said Nov. 17 that it adjusted to its previously reported financial results for the Sept. 30 quarter.

The Sacramento-based producer and marketer of ethanol previously reported a non-cash asset impairment charge of $26.6 million related to its suspended Imperial Valley ethanol plant construction project, which represented $43.8 million in property and equipment less $17.2 million in construction-related liabilities. Pacific Ethanol said in a release that it increased its impairment charge by $14.3 million, to a total of $40.9 million.

The increase represents impairment on the gross amount of $43.8 million in property and equipment, less estimated future undiscounted cash flows, the company said. Pacific Ethanol said the increase will result in future non-cash gains to the extent the company is discharged from its construction-related liabilities.

Pacific Ethanol’s independent registered public accounting firm has completed its review of the company's financial statements for the period, company officials said.

The company operates ethanol plants in Madera, Calif.; Stockton, Calif; Boardman, Ore.; and Burley, Idaho. The company also owns a 42 percent interest in Front Range Energy LLC, which operates an ethanol plant in Windsor, Colo.

Pacific Ethanol in December 2007 said in a release that it suspended construction of its Imperial Valley project near Calipatria, Calif., “until market conditions improve.” At the time, the Stockton and Burley plants remained under construction and the company said it was on target to attain a production-capacity goal of 220 million gallons in 2008.