ST. PAUL, MINNESOTA, US — Strong demand for energy and oilseed products translated into solid earnings for CHS Inc. in the third quarter ended May 31.
The company reported net income of $547.5 million compared to a record third quarter net income of $576.6 million a year earlier. For the first nine months, the company reported net income of $1.6 billion and revenues of $36.1 billion, up from net income of $1.2 billion and revenues of $34.4 billion in the same period a year earlier.
"Consumer demand remains strong for energy and oilseed products, and our joint venture investments continue to contribute to strong earnings and round out our well-diversified portfolio," said Jay Debertin, president and chief executive officer of CHS Inc. "As we enter the end of our fiscal year, opportunities remain for profitability and growth in the agriculture industry, and CHS is well-positioned to maximize value for our member cooperatives, farmer-owners and customers."
One highlight of the quarter was improved soybean and canola crush margins due to strong meal and oil demand, resulting in higher earnings in the oilseed processing business.
Pretax earnings for the Ag segment decreased $40.2 million to $233.5 million. The earnings reflect increased margins in the grain and oilseed and processing product categories and market-driven price decreases, particularly for wholesale and retail agronomy products.
Pretax Energy earnings for the quarter increased $35.8 million compared to 2022 with strong refining margins due to global market conditions and favorable pricing of heavy Canadian crude oil.