The nation's largest farmer cooperative, Inver Grove Heights-based CHS, Inc., reported strong consumer demand for fuel boosted their energy division as the company posted $11.3 billion in new revenue for the second quarter, a 9% jump over last year.
It's a sign of a rebounding energy division — which encompasses refined fuels, lubricants and propane — following the pandemic's initial disruptions.
"We had some really tough energy results during the heart of COVID. Those times were difficult," CEO Jay Debertin said, in an interview. "We've come back out the other end with good demand."
For the quarter, ending on Feb. 28, the farmer-owned cooperative posted net income of $292 million, compared to $219 million in the second quarter a year ago.
While energy profits surged, the company — which runs a gamut of agriculture services, from purchasing and processing grains to selling wholesale fertilizer — acknowledged a pretax loss of $81.5 million on the cooperative's agricultural segment.
"Last year, fertilizer prices were going up, up, up," Debertin said. "This year, we've just seen some volatility within the agronomy pricing."
Last year during the second quarter, CHS notched $55 million in profits — earnings they called "historic" in a press release.
But on Wednesday the CEO stressed the reported earnings only represent the second quarter.
"We'll see how things look as we move through spring," Debertin said.
Like many agribusinesses, CHS's operations — particularly those in Ukraine — were interrupted last year after the Russian invasion. On Wednesday, Debertin said grain shipments continue "largely by rail" out of Ukraine through Romania.
"Those volumes are less because it is by rail, and that's not the most efficient process in that part of the world," Debertin said.
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