In the Q2, South 8 Energy Llc's corporate clients experienced a reduction by -9.69 % in their costs of revenue, compared to a year ago, sequentially costs of revenue were trimmed by -8.75 %. During the corresponding time, South 8 Energy Llc saw a revenue deteriorated by -52.73 % year on year, sequentially revenue fell by -52.79 %. While revenue at the South 8 Energy Llc's corporate clients fell by -7.07 % year on year, sequentially revenue fell by -8.08 %.
Customers of South 8 Energy Llc saw their costs of revenue decrease by -9.69 % in Q2 compare to a year ago, sequentially costs of revenue were trimmed by -8.75 %, for the same period South 8 Energy Llc revnue deteriorated by -52.73 % year on year, sequentially revenue fell by -52.79 %.
South 8 Energy Llc's Comment on Sales, Marketing and Customers
We sell and market the ethanol, distillers grains and corn oil produced at
the plant through normal and established markets, including local, regional
and national markets. Our products are primarily shipped by rail and by truck
in our local market. We have separate marketing agreements with RPMG for our
ethanol, distillers grains and corn oil. Whether or not our products are sold
in local markets will depend on decisions made by RPMG, except for the MDGS
which we internally market locally. Local markets are evaluated on a case-by-case
basis.
Ethanol
We have an exclusive marketing agreement with RPMG for the purposes of marketing
and distributing all of the ethanol we produce at the ethanol plant. Because
we are an owner of RPMG, LLC, our marketing fees are based on RPMGs actual
cost to market our ethanol. Our ethanol marketing agreement provides that we
can sell our ethanol either through an index arrangement or at a fixed price
agreed to between us and RPMG. The term of our ethanol marketing agreement is
perpetual, until it is terminated according to the terms of the agreement. The
primary reasons the ethanol marketing agreement would terminate are if we cease
to be an owner of RPMG, LLC, if there is a breach of the agreement which is
not cured, or if we give advance notice to RPMG that we would like to terminate
the agreement. Notwithstanding our right to terminate the ethanol marketing
agreement, we may be obligated to continue to market our ethanol through RPMG
for a period of time after the termination. Further, following the termination,
we agreed to accept an assignment of certain railcar leases which RPMG has secured
to service us. If the ethanol marketing agreement is terminated, it would trigger
a redemption of our ownership interest in RPMG, LLC.
Distillers Grains
On August 29, 2013, we executed a distillers grain marketing agreement with
RPMG effective starting on October 1, 2013. Pursuant to the marketing agreement,
RPMG markets all of the dried distillers grains we produce and we will continue
to internally market our modified/wet distillers grains. Due to the fact that
we are a part owner of RPMG, LLC, RPMG will only charge us its actual cost of
marketing our distillers grains to its customers. The initial term of the marketing
agreement was one year and thereafter the agreement renews for additional one
year periods unless we elect not to renew the agreement. The agreement may be
terminated by either party based on certain events described in the agreement
or based on the bankruptcy or insolvency of either party.
We market and sell our MDGS internally. Substantially all of our sales of MDGS
are to local farmers and feed lots.
Corn Oil
In March 2012, we executed a corn oil marketing agreement with RPMG to sell
all of the corn oil that we produce. We pay RPMG a commission based on each
pound of corn oil that RPMG sells on our behalf. The initial term of the corn
oil marketing agreement was one year and the agreement automatically renews
for additional one year terms unless either party gives notice that it will
not extend the agreement past the current term.
South 8 Energy Llc’s Comment on Sales, Marketing and Customers
We sell and market the ethanol, distillers grains and corn oil produced at
the plant through normal and established markets, including local, regional
and national markets. Our products are primarily shipped by rail and by truck
in our local market. We have separate marketing agreements with RPMG for our
ethanol, distillers grains and corn oil. Whether or not our products are sold
in local markets will depend on decisions made by RPMG, except for the MDGS
which we internally market locally. Local markets are evaluated on a case-by-case
basis.
Ethanol
We have an exclusive marketing agreement with RPMG for the purposes of marketing
and distributing all of the ethanol we produce at the ethanol plant. Because
we are an owner of RPMG, LLC, our marketing fees are based on RPMGs actual
cost to market our ethanol. Our ethanol marketing agreement provides that we
can sell our ethanol either through an index arrangement or at a fixed price
agreed to between us and RPMG. The term of our ethanol marketing agreement is
perpetual, until it is terminated according to the terms of the agreement. The
primary reasons the ethanol marketing agreement would terminate are if we cease
to be an owner of RPMG, LLC, if there is a breach of the agreement which is
not cured, or if we give advance notice to RPMG that we would like to terminate
the agreement. Notwithstanding our right to terminate the ethanol marketing
agreement, we may be obligated to continue to market our ethanol through RPMG
for a period of time after the termination. Further, following the termination,
we agreed to accept an assignment of certain railcar leases which RPMG has secured
to service us. If the ethanol marketing agreement is terminated, it would trigger
a redemption of our ownership interest in RPMG, LLC.
Distillers Grains
On August 29, 2013, we executed a distillers grain marketing agreement with
RPMG effective starting on October 1, 2013. Pursuant to the marketing agreement,
RPMG markets all of the dried distillers grains we produce and we will continue
to internally market our modified/wet distillers grains. Due to the fact that
we are a part owner of RPMG, LLC, RPMG will only charge us its actual cost of
marketing our distillers grains to its customers. The initial term of the marketing
agreement was one year and thereafter the agreement renews for additional one
year periods unless we elect not to renew the agreement. The agreement may be
terminated by either party based on certain events described in the agreement
or based on the bankruptcy or insolvency of either party.
We market and sell our MDGS internally. Substantially all of our sales of MDGS
are to local farmers and feed lots.
Corn Oil
In March 2012, we executed a corn oil marketing agreement with RPMG to sell
all of the corn oil that we produce. We pay RPMG a commission based on each
pound of corn oil that RPMG sells on our behalf. The initial term of the corn
oil marketing agreement was one year and the agreement automatically renews
for additional one year terms unless either party gives notice that it will
not extend the agreement past the current term.
Sources:
South 8 Energy Llc’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: South 8 Energy Llc’s corporate clients.
For your research, we’ve provided 9 tables on South 8 Energy Llc corporate clients.
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