Shares of renewable fuel producer Pacific Ethanol, Inc. (Nasdaq: PEIX) were up as much as 26 percent from Friday’s closing price in morning trading on Monday.

Last week, the Sacramento-based company PEIX announced record net sales for the third quarter. Sales grew to $271.6 million for the third quarter of 2011, up from net sales of $46 million a year ago. Net income in Q3 soared to $4 million, compared to a net loss of $12.9 million for the third quarter a year ago, which included a loss on the company’s investment in Front Range Energy, LLC of $12.1 million.

For the nine months ended September 30, 2011, net sales were $659.4 million, compared to $194.1 million in the same period in 2010. For the nine months ended September 30, 2011, net income available to common stockholders was $4.2 million, compared to $83.2 million in the same period in 2010, which included a non-cash gain from bankruptcy exit of $119.4 million and a loss on the company’s investment in Front Range Energy, LLC of $12.1 million.

“In the third quarter, we again delivered record net sales and total gallons sold driven by the continued execution of our diversified business strategy,” said Pacific Ethanol, Inc.’s president and CEO Neil Koehler in an October 26 press release. “We recorded the ninth consecutive quarter of growth in total gallons sold, bringing our compound annual growth rate to 75 percent over that period. Most importantly, we generated strong operating income and achieved profitability during the quarter.”

Shares of Pacific Ethanol PEIX are down about 38 percent over the past three months.