CHS Inc. reported net income of $1.68 billion on revenues of $47.8 billion for the year ending Aug. 31, 2022, exceeding previous records. This compared to the prior year’s $553.6 million and $38.4 billion, respectively. CHS saw a significant uptick in pretax earnings for all three major segments – Ag, Nitrogen Production, and Energy.
Full-year Ag earnings were $657.6 million, up from the prior year $298.1 million. CHS said Ag’s global grain and processing and wholesale agronomy businesses benefited from strong global demand and increased margins. There were increased revenues from feed and farm supplies, despite less favorable weather during spring planting and application season. Oilseed processing was bolstered by robust meal and oil demand.
Earnings from the Nitrogen Production segment moved up to $478 million from $121 million. This included the CHS stake in CF Nitrogen, where stronger results came from strong global demand for urea and UAN, coupled with decreased global supply.
The Energy segment posted earnings of $616.6 million, pulling out of a prior year loss of $10.6 million. CHS said refining margins were higher and drove the increase due to the tightening global supply and demand landscape.