SYDNEY, AUSTRALIA — GrainCorp Ltd. said it expects to report underlying EBITDA of A$65 million to A$85 million in fiscal 2019 and an underlying net loss after tax in the range of A$70 million to A$90 million.
The full-year negative EBITDA impact arising from the ongoing disruption of international grain trade flows and Australian wheat markets is forecast to increase to A$60 million to A$70 million, up from an earlier forecast of A$40 million in mid-April.
“While the company has substantially executed its old crop position, new crop trading opportunities in Q4 are no longer expected to materialize due to reluctance from international market participants to consider new season contracts,” GrainCorp said.
Mark Palmquist, chief executive officer of GrainCorp, said fiscal 2019 has been “an extremely difficult” year for the company due to severe disruptions in global grain markets and drought in eastern Australia.
“The extraordinary circumstances in eastern Australia are highlighted by the fact we expect to ship 2.3 million tonnes of grain from South and Western Australia to meet east coast domestic demand,” he said.