ST. PAUL, MINNESOTA, US — Net income at CHS Inc. for the third quarter of fiscal 2020 increased to $97.6 million, up 78% from $54.6 million in the third quarter of fiscal 2019.

Revenue for the second quarter fell to $7.2 billion, down from $8.5 billion in the third quarter of 2019.

“We continue to adapt how we do business to ensure the safety of our employees and our customers,” said Jay Debertin, president and chief executive officer of CHS. “A successfully managed supply chain helped our owners get the products and services they and their customers need to grow their crops. That focus also helped us deliver value to our customers around the world.

“Improved trade relations benefited us, and, in turn, our owners, and we are eager for that to continue. We are not immune to the market pressures caused by COVID-19, and we will continue to adjust to best serve our owners and customers.”

The ag segment, which includes domestic and global grain marketing and crop nutrients, renewable fuels, local retail operations, and processing and food ingredients businesses, had a pre-tax earnings of $95.4 million in the third quarter, up from $21.1 million in the same quarter a year ago.

CHS attributed the boosted earnings to improved trade relations between the United States and foreign trading partners and favorable weather conditions for spring planting compared to the third quarter of fiscal year 2019. CHS also noted the impact of additional loan loss reserves established in the third quarter of fiscal year 2019 that did not reoccur in the third quarter of fiscal year 2020.

In the third quarter, the co-op’s Corporate and Other segment had pre-tax earnings of $6.3 million, which compared with pre-tax earnings of $19 million in the second quarter of 2019. CHS said lower earnings from its investment in Ventura Foods resulting from decreased demand due to COVID-19-related demand shocks in the food service sector.

The Energy segment experienced a pre-tax loss of $54.8 million in the third quarter of 2020 compared with $1.3 million in pre-tax earnings for the third quarter of fiscal year 2019. CHS attributed the loss to decreased refining margins, which partially were offset by improved crude oil differentials for heavy Canadian crude oil processed by its refineries and by improved propane margins.

“Decreased selling prices and volumes for refined fuels driven by global market conditions, including the impact of COVID-19 and product mix, which has depressed demand for energy products,” the company said.

The co-op’s energy segment also had a $42 million noncash charge to reduce its refined fuels inventory to its market value.

Follow our breaking news coverage of the coronavirus/COVID-19 situation.