REX Resources posts $1.7M loss in 2nd quarter

In this file photo, Zafar Rizvi, left, the company’s chief executive, stands with board Chairman Stuart Rose. Rose left the company's CEO position in 2015.

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In this file photo, Zafar Rizvi, left, the company’s chief executive, stands with board Chairman Stuart Rose. Rose left the company's CEO position in 2015.

REX American Resources Corp. posted a net loss attributable to shareholders of $1.7 million in the second quarter of 2020, due primarily to the idling of ethanol plants, the company reported Wednesday,

That’s down compared to net income of $2.3 million in the same quarter last year, with a Q2 2020 basic and diluted net loss per share attributable to REX common shareholders of 28 cents, compared to net income per share of 36 cents in the same quarter last year.

The alternative energy investment company focuses on its interests in six ethanol production facilities and its refined coal operation.

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Net sales and revenue for the most recent quarter were $39.3 million, compared with $105.9 million in the second quarter of 2019.

“The year-over-year net sales and revenue decline was primarily due to lower ethanol production levels as the company temporarily idled its NuGen Energy and One Earth Energy plants, which led to a 56% decrease in ethanol gallons sold,” REX said.

Sales and revenue also reflect an 11% decline in ethanol pricing, said REX, which is a former Dayton-area electronics retailer.

Pre-COVID, the ethanol facilities in which REX has an interest in aggregate shipped about 660 million gallons of ethanol over the year ending Jan. 31, 2020.

Shares of REX were down nearly 9.7%, down $7.49 to $69.99 in late morning trading.

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