Los Angeles-Rentech Inc. reported a net loss from continuing operations of $22.8 million ($.138 per diluted share) on sales of $28.5 million for the second quarter ending March 31, 2008, compared to a year-ago loss of $17.2 million ($.121 per share) and $16.9 million, respectively. Six-month losses were $46.2 million ($.280 per share) on sales of $76.0 million, versus the year-ago loss of $28.8 million ($.182 per share) and $52.3 million, respectively. The company’s Rentech Energy Midwest Corp., (REMC) which runs the East Dubuque, Ill., nitrogen plant, reported net income from continuing operations of $7.3 million on sales of $28.5 million, versus the year-ago $601,000 and $16.9 million. Six-month REMC income was $16.4 million on sales of $75.4 million, versus the year-ago $3.7 million and $52.2 million. “REMC continues to perform well, driven by strong demand for biofuels,” said President and CEO Hunt Ramsbottom. “As a result, we are evaluating opportunities to increase the efficiency of the facility. In addition, we are currently engaged in a company-wide cost review and reduction program that will take corporate spending to a level that can be supported by the free cash flow at REMC.” Ramsbottom touted REMC’s inland location in light of high demand and fuel prices, as its geographic location enhances its value versus other domestic producers and importers. Rentech has also made two major synfuel announcements. In Mississippi, Governor Haley Barbour has approved $175 million in tax-exempt Go Zone bonds for Rentech’s proposed synthetic fuels and chemicals facility near Natchez. In addition, Rentech’s product demonstration unit in Commerce City, Colo., is expected to start producing at the end of June. It can produce 420 gallons of synthetic fuels and chemicals, and will initially use natural gas. Other feedstocks, such as biomass and other fossil products, will be included when gasification is added.
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