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CHS: Strong global demand increases revenues

Demand for ag and energy generated $782.6 million in fiscal 2023 first quarter net income.


CHS Inc. has released results for its first quarter ended November 30, 2022 and reported quarterly net income of $782.6 million compared to $452 million in the first quarter of fiscal year 2022.

Fiscal 2023 first quarter highlights include:

  • Revenues of $12.8 billion compared to $10.9 billion in the first quarter of fiscal year 2022, a year-over-year increase of 17%
  • Continued robust global demand for commodities, coupled with market volatility, resulted in strong earnings across all business segments
  • Significantly improved earnings in the energy segment resulted primarily from higher refining margins driven by strong demand in rural America and global market conditions
  • Soybean and canola processing businesses in the ag segment benefited from strong demand for meal and oil
  • CF Nitrogen investment delivered strong earnings due to robust urea and UAN demand

"The U.S. agricultural industry has benefited from ongoing strong global demand for grain and oilseed commodities," said Jay Debertin, president and CEO of CHS Inc.

"Our continued strong earnings are attributable to market dynamics and supported by our investments on behalf of our owners in infrastructure, supply chain capabilities and innovative technology that drive efficiency and operational improvements. As we enter 2023, CHS remains well-positioned to maximize value for our member cooperatives, farmer-owners and customers."


Pretax earnings of $396.6 million for the first quarter of fiscal year 2023 represent a $327.4 million increase versus the prior year period.

  • Improved refined fuels market conditions including higher refining margins and discounts on heavy Canadian crude oil, partially offset by higher renewable energy credit costs and increased refinery maintenance expenses
  • Higher refined fuels and propane volumes driven by strong demand due to more favorable weather conditions during fall harvest compared to the same period in fiscal year 2022
  • Lower propane margins resulting from hedging-related impacts due to volatile pricing in the first quarter


Pretax earnings of $287.3 million represent a $0.9 million increase versus the prior year period.

  • Strong global demand and constrained supply for grain and oilseed
  • Improved margins in the oilseed processing business due to robust demand as well as mark-to-market gains
  • Lower margins on the grain and oilseed commodities, driven by unfavorable mark-to-market impacts, as well as less favorable pricing for agronomy products
  • Decreased volumes across most of the ag segment due to numerous factors, including drought conditions in portions of our trade territory

Nitrogen Production

Pretax earnings of $96.9 million represent a $0.3 million increase versus the prior year period and reflect continued favorable performance of our strategic investment in CF Nitrogen due to strong global demand for urea and UAN.

Pretax earnings of $36.7 million represent a $22.2 million increase versus the prior year period and reflect increased equity income from the Ventura Foods joint venture, which resulted from more favorable market conditions for edible oils.

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