US' Aventine posts Q1 loss, may delay plants

02 May 2008 05:40  [Source: ICIS news]

SINGAPORE (ICIS news)--US ethanol maker Aventine Renewable Energy reported late on Thursday a loss of $10.8m (€7m) for the first quarter, reversing a $14.9m net profit a year earlier, largely due to a $21.6m impairment of some illiquid securities.

The company warned of possible delays to the construction of two new plants due difficulty in selling the securities and the current tough liquidity environment in the U.S.

Revenue increased 17% to $509.9m from $436.7m for the same period a year before, on surging demand and prices for ethanol. Without the exceptional securities charge, Aventine said it would have reported gains that would have exceeded the general market expectations.

Moody’s recently downgraded Aventine’s speculative-grade liquidity rating to SGL-3, from SGL-1, and moved the ratings outlook to negative.

($1 = €0.65)

By: Bohan Loh
+65 6780 4359

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