CHS Inc. has released results for its second quarter ended February 28, 2022.
The company reported second quarter net income of $219 million and revenues of $10.3 billion, compared to a net loss of $38.2 million and $8.3 billion in revenues for the first quarter of fiscal year 2021.
For the first six months of fiscal year 2022, the company reported net income of $671 million and revenues of $21.2 billion, compared to net income of $31.4 million and revenues of $17 billion recorded in the first half of fiscal year 2021.
"The U.S. agricultural industry continues to experience strong demand for grain and oilseed commodities," said Jay Debertin, president and CEO of CHS Inc.
"This strong demand combined with global market volatility contributed to higher earnings in the quarter.
"The Russian invasion of Ukraine in February has caused significant uncertainty and instability in global commodities markets, including agricultural commodities and crude oil," Debertin added.
"Despite these factors and inflationary pressures, CHS remains well positioned to continue to maximize value for our local cooperative and farmer-owners through our integrated global supply chain network."
Fiscal 2022 second quarter highlights include:
- Refining margins in the Energy segment were higher due to global supply and demand factors and more favorable pricing for Canadian crude oil, which is processed by CHS refineries
- Robust global demand, coupled with increased market volatility, resulted in higher commodity prices and improved earnings, primarily in the Ag segment
- Processing and wholesale agronomy businesses drove significantly improved earnings compared to the second quarter of fiscal year 2021
- Strategic investment in CF Nitrogen contributed a significant portion of our second quarter earnings, as a result of market conditions driven by strong global demand for urea and urea ammonium nitrate
