REX American Resources Corporation (NYSE:REX)
Q2 2022 Earnings Conference Call
August 30, 2022 11:00 AM ET
Company Participants
Douglas Bruggeman - CFO
Stuart Rose - Executive Chairman of the Board
Zafar Rizvi - CEO
Conference Call Participants
Jordan Levy - Truist Securities
Pavel Molchanov - Raymond James
Chris Sakai - Singular Research
Presentation
Operator
Greetings, and welcome to the REX American Resources Fiscal 2022 Second Quarter Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded Tuesday August 30, 2022.
I would now like to turn the conference over to Doug Bruggeman, Chief Financial Officer. Please go ahead.
Douglas Bruggeman
Good morning, and thank you for joining REX American Resources fiscal 2022 second quarter conference call. We'll get to our presentation and comments momentarily as well as your question-and-answer session. But first, I'll review the Safe Harbor disclosure. In addition to historical facts or statements of current conditions, today's conference call contains forward-looking statements that involve risks and uncertainties within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements reflect the company's current expectations and beliefs, but are not guarantees of future performance. As such, actual results may vary materially from expectations. The risks and uncertainties associated with the forward-looking statements are described in today's news announcement and in the company's filings with the Securities and Exchange Commission including the company's reports on Form 10-K and 10-Q. REX American Resources assumes no obligation to publicly update or revise any forward-looking statements.
I have joining me on the call today, Stuart Rose, Executive Chairman of the Board; and Zafar Rizvi, Chief Executive Officer. I'll first review our financial performance and then turn the call over to Stuart for his comments. Sales for the second quarter increased by 23% as we experienced higher pricing for ethanol, distiller grains and corn oil. Ethanol sales for the quarter were based upon 71.4 million gallons this year versus 69 million last year. We reported gross profit of $16.6 million this year versus a gross profit of $14.2 million in the prior year.
For the current year quarter, improved selling prices were offset by higher corn and natural gas pricing. Ethanol pricing improved by 20%, dried distiller grains improved by 21%, and corn oil pricing improved by 53% for this year's quarter over the prior year's second quarter. Corn cost increased by 21% and natural gas pricing increased by 113% for this year's quarter compared to the prior year as inflationary pressures and the impact on commodity pricing from the Ukraine-Russia conflict continued.