CHS Inc., St. Paul, reported a $38.2 million net loss attributable to CHS for the second-quarter ending Feb. 28, 2021, compared to the year-ago net income of $125.4 million, saying that improved results for its Ag and Nitrogen Production segments could not overcome lingering COVID-19 impacts to the cooperative’s Energy business. Total revenues were $8.3 billion versus the year-ago $6.6 billion, a 26.1 percent increase.
“Improved trade relations between the U.S. and foreign trade partners, combined with our operating efficiency initiatives, led to record grain and oilseed volume increases and continued price gains, significantly improving our Ag segment earnings over the prior year,” said Jay Debertin, CHS President and CEO.
“Additionally, favorable growing conditions and overall strength in agriculture helped drive demand for crop inputs, including crop nutrients and crop protection products and services. Our Energy segment, while showing improvement over the previous quarter, continues to experience unfavorable refined fuels market conditions related to the COVID-19 pandemic and exceptionally higher costs for renewable energy credits. These factors resulted in volume and margin declines that significantly reduced earnings compared to the prior year,” he continued.
Second-quarter Ag income was $14 million on revenue of $6.94 billion, up from a year-ago loss of $20.8 million and $5.12 billion, respectively. Nitrogen Production, which represents the CHS stake in CF Nitrogen, saw income of $11.2 million versus $5.7 million, with the company citing higher urea prices for the uptick.
Energy posted a second-quarter loss of $54.7 million on revenue of $1.37 billion, compared to the year-ago positive $138.9 million and $1.46 billion, respectively.
CHS reported six-month net income of $31.4 million on revenues of $17 billion, down from the year-ago $303.3 million and $14.2 billion, respectively.
Six-month Ag income was $97 million on revenue of $14.4 billion, compared to the year-ago loss of $34.7 million and $10.8 billion, respectively. Six-month Nitrogen Production income, however, was down at $15.6 million from $22.2 million.
Energy posted a six-month loss of $121.9 million on revenue of $2.63 billion, down from the year-ago income of $301.1 million and revenue of $3.36 billion.