Key drivers for fiscal year 2023 financial results included:
- Consolidated revenues of $45.6 billion for fiscal year 2023 compared to $47.8 billion for fiscal year 2022.
- Energy segment delivered strong earnings, reflecting continued favorable market conditions in refined fuels business.
- Ag segment, robust meal and oil demand contributed to higher earnings in our soybean and canola processing business.
- Equity method investments performed well, particularly CF Nitrogen and Ventura Foods.
"The support of our member cooperatives and farmer-owners, dedication of our employees, exceptional operational performance and favorable market conditions enabled us to achieve the strongest earnings in our history during fiscal year 2023," said Jay Debertin, president and CEO of CHS Inc.
"As a result, CHS intends to return $730 million in cash patronage and equity redemptions to our member cooperatives and farmer-owners in fiscal year 2024, demonstrating our commitment to sharing profits with the producers, local cooperatives and rural businesses that work with us to help feed people around the world."
Debertin added that the shared success showcases the unique power of the cooperative system to keep adapting and advancing through the uncertainties that can come with agriculture.
"We will continue to collaborate, innovate and invest to meet the growing global demand for agricultural products," he said. "A diversified portfolio, coupled with strategic investments in supply chain capabilities and emerging market opportunities, positions CHS to create a better company for the future and to maximize value for our owners and customers."
Fiscal Year 2023 business segment results
EnergyPretax earnings of $1.1 billion represent a $458.9 million increase versus the prior year and reflect:
- A significant increase in refined fuels income due to higher refining margins and favorable pricing of heavy Canadian crude oil — partially offset by the impact of decreased production volumes at our Montana refinery due to major planned maintenance
- Higher margins in propane business attributed to favorable market conditions
AgPretax earnings of $411.8 million represent a $245.8 million decrease versus the prior year and reflect:
- Decreased margins for wholesale and retail agronomy products, which experienced market-driven price declines compared to historically high prices in the previous year
- Lower margins for ethanol as market prices declined
- Negative impact of mark-to-market adjustments on grain and oilseeds
- Margin increases in our oilseed processing business, bolstered by strong meal and oil demand
Nitrogen ProductionPretax earnings of $260.8 million represent a $217.2 million decrease versus the prior year due to lower equity income from our CF Nitrogen investment attributed to decreased market prices of urea and UAN.
