CHS Inc. has released results for its third quarter ended May 31, 2022.
The company reported third quarter net income of $576.6 million and revenues of $13.1 billion, compared to third quarter fiscal year 2021 net income of $273.6 million and revenues of $10.9 billion.
For the first nine months of fiscal year 2022, the company reported net income of $1.2 billion and revenues of $34.4 billion, compared to net income of $305 million and revenues of $28 billion recorded during the same period of fiscal year 2021.
"Global grains and oilseed market demand remained strong throughout the third quarter," said Jay Debertin, president and CEO of CHS Inc.
"Decreased global supply due to geopolitical factors, supply chain disruptions and market volatility also contributed to increased earnings. I am proud of our team's continued dedication to delivering superior value for our farmer-owners and customers in this unprecedented global market."
Ukraine war adds uncertainty, volatility to energy markets
Debertin noted the ongoing war in Ukraine has resulted in significant uncertainty and contributed to ongoing volatility across global energy markets.
"We are leveraging our U.S. refineries to reliably meet the energy needs of CHS customers," said Debertin.
Debertin said CHS continues to invest on behalf of its owners in infrastructure, supply chain capabilities and innovative technology that is driving operational improvements and efficiency gains throughout CHS's expansive network.
"While logistical challenges and inflationary pressures linger, CHS remains well positioned to continue to maximize value for our member cooperative and farmer-owners," he said.
Fiscal 2022 third quarter highlights
- Continued strong global demand, coupled with increased market volatility, resulted in higher commodity prices and improved earnings
- Ag segment -- Processing and wholesale agronomy businesses delivered another strong quarter, building on momentum that began earlier in the fiscal year
- Refining margins in the Energy segment were higher, driven by robust demand across global energy markets and favorable pricing for Canadian crude oil, which is processed by CHS refineries
- Certain CHS equity method investments continued to perform exceptionally well, including our CF Nitrogen investment. Favorable market conditions for CF Nitrogen were driven by strong global demand for urea and urea ammonium nitrate
