Brookfield Property Partners L.P. Q3 FY2023 earnings call

Todd Becker mentioned Q3 had $52 million EBITDA, 93.9% ethanol operating rate, and strong Ultra-High Protein production. The team gained momentum after Q3 headwinds, with focus on Q4 performance. MSC technology has five facilities operating, joint venture with Tharaldson on track for Q1 2024 commissioning. Successful 60% Protein full-scale production in Q3, aiming for 20%-30% portfolio in 2024. Carbon capture projects in Summit and Nebraska are on track. Shenandoah Clean Sugar Technology facility on track for Q1 2024 commissioning with high customer interest.

Green Plains consolidated revenues for the third quarter were $892.8 million, 6.5% lower than the prior year due to lower ethanol and dry distillers grains prices. EBITDA for the quarter was $52 million. Ethanol operating rate was 93.9%. Green Plains Partners reported net income of $9.4 million and adjusted EBITDA of $12.7 million for the quarter. The ag and energy segment had EBITDA of $12.2 million, $5.6 million higher than the prior year, driven by merchant business opportunities.

2024 EBITDA expected to be $80 million to $120 million from MSC facilities and Tharaldson JV. 2025 outlook aligns with previous guidance,受益 from carbon capture and 60% Protein initiatives. Renewable corn oil well-positioned, expecting advantage in 2025 with IRA.

Market volatility in corn, protein, and veg oil prices. Permitting delays for Madison, Illinois and Fairmont, Minnesota facilities. Impact of regulatory changes on SAF and 45Z guidance.

Q: Protein allocations, customer mix, economics A: Economics improved with corn prices lower and protein prices higher; saw demand uplift and higher inclusion rates.

Q: Carbon strategy confidence A: Confident in Summit and Nebraska CCS projects, on track for startup, advantaged position.

Q: Corn oil pricing, 45Z guidance A: Locked in some corn oil prices above market; 45Z guidance expected by end of year, but could slip.

Q: 60% Protein progress A: Successful full-scale production, growing demand, aim to increase portfolio in 2024.

Q: Clean Sugar expansion A: Shenandoah commissioning on track, planning expansion, self-funding possible with cash flow.

Q: Corn basis and ethanol exports A: Corn basis normalized, ethanol exports strong, especially to Canada and EU.

Q: Asset aging and CapEx A: Modernizing assets with automation, CapEx in $60M-$70M range, focused on maximizing plant capabilities.