OMAHA - Green Plains Inc. (NASDAQ:GPRE) announced a change in its executive team with Phil Boggs set to assume the role of Chief Financial Officer starting November 1, 2024. The current CFO, Jim Stark, will retire by the end of this year, marking the end of his tenure with the company.
The transition is part of a strategic succession planning process. Stark, who has been with Green Plains since 2009 and served in various capacities, took on the CFO role in 2022 with the intention of preparing Boggs for the position. Todd Becker, President and CEO of Green Plains, expressed gratitude for Stark's contributions and leadership.
Stark reflected positively on his time with the company and his decision to retire, citing a desire to focus on family and explore opportunities in private businesses. Boggs, who joined Green Plains in 2009, has held positions of increasing responsibility, including head of investor relations and Treasurer. His promotion to CFO is a testament to his extensive experience within the company and his established credibility with stakeholders.
Boggs will oversee finance, accounting, and investor relations as he steps into his new role. His background in financial planning and analysis, treasury, and capital markets transactions has been highlighted as key preparation for his upcoming responsibilities.
Green Plains Inc. is a biorefining company engaged in the development of technologies for the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of biofuels and renewable feedstocks for advanced biofuels, as well as the creation of ingredients for animal and aquaculture diets.
The information in this article is based on a press release statement from Green Plains Inc.
In other recent news, Green Plains Renewable Energy has been the subject of several analyst adjustments following its second-quarter earnings report. The company posted a loss of $0.38 per share, leading Jefferies to cut its price target to $28, while maintaining a Buy rating. BMO Capital also reduced its price target from $22 to $17, keeping a Market Perform rating. Oppenheimer downgraded the company's stock from Outperform to Perform, citing concerns over earnings visibility.
Despite lower-than-expected second quarter EBITDA of $5 million, Green Plains provided a positive forecast for the third quarter of 2024, securing ethanol margin hedges at approximately $0.30 per gallon. However, the company's consolidated revenues decreased to $618.8 million and a net loss of $24.35 million was recorded for the quarter.
In terms of other developments, Green Plains' carbon capture project in Nebraska is progressing as planned, with an anticipated start date in the second half of 2025. The company is also making strides in its transformation into a low-carbon bio-refinery platform, with ongoing equipment refreshes and plant expansions to boost capacity. These recent developments highlight Green Plains' commitment to renewable energy and its continued efforts to improve financial performance.
InvestingPro Insights
As Green Plains Inc. (NASDAQ:GPRE) prepares for this significant leadership transition, investors should be aware of some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Green Plains has a market capitalization of $900 million USD, reflecting its position in the biorefining industry. However, the company's financial performance has been challenging recently. The revenue for the last twelve months as of Q2 2023 stood at $2.82 billion USD, with a concerning revenue growth decline of -20.74% over the same period.
InvestingPro Tips highlight that Green Plains is currently not profitable over the last twelve months, with analysts not anticipating profitability this year. This aligns with the reported operating income of -$27.32 million USD for the last twelve months as of Q2 2023. The company's gross profit margin is also a point of concern, standing at a modest 6.9%.
The stock price has experienced significant downward pressure, with InvestingPro data showing a one-year price total return of -60.38% as of the latest available data. This decline is reflected in the P/E ratio (adjusted) of -14.49, indicating negative earnings.
On a positive note, one InvestingPro Tip suggests that Green Plains' liquid assets exceed its short-term obligations, which could provide some financial flexibility as the new CFO takes the helm.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Green Plains, providing a deeper understanding of the company's financial health and market position during this transition period.
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