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Broilers Renegotiates Ethanol Supply Price

by 5m Editor
3 October 2007, at 10:01am

JAMAICA - Tumbling ethanol prices in the United States forced the Jamaica Broilers Group (JBG) to renegotiate prices with raw, material suppliers in Brazil in September.

Having wrapped up those talks, successfully, the company has now issued a profit warning to investors to expect profits to erode in the second quarter.

JB Ethanol Limited (JBE), the new biofuels subsidiary of the Broilers Group, has experienced a 28 per cent drop in the expected price for its manufactured ethanol, which its parent warns will likely contribute operating loss of US$3 million ($210 million) in the second period, August to October.

Operating loss

Broilers has already recorded first, quarter operating loss of J$42 million in its fuel/energy segment, off revenues of $52 million.

It expects that the losses could also extend into the third quarter.

The notice via the stock exchange comes as analysts warn ethanol prices would likely remain depressed in the United States into the first quarter of 2008.

Source: Jamaica-Gleaner

5m Editor