Global agribusiness cooperative CHS posted $547.5 million in net income for Q3 2023 boosted by strong global demand, compared to its record third quarter net income of $576.6 million in fiscal year 2022. For the first nine months of fiscal year 2023, the company reported net income of $1.6 billion and revenues of $36.1 billion, compared to net income of $1.2 billion and revenues of $34.4 billion recorded during the same period of fiscal year 2022.
The company’s Energy segment delivered strong earnings, reflecting sustained favorable market conditions in its refined fuels business. Improved soybean and canola crush margins due to strong meal and oil demand resulted in higher earnings in its oilseed processing business, and market-driven price decreases for wholesale and retail agronomy products resulted in lower margins versus the same period last year.
In January, the company strengthened its 24-year partnership with Cargill, named Temco, integrating Cargill’s export grain terminal in Houston, Texas, US. The addition of the Houston terminal expands Temco’s export capabilities, providing shipping access for grains, oilseeds and byproducts through the port of Houston. The Houston terminal is located around 40 miles inland from the Gulf of Mexico via Galveston Bay and has 6 million bushels of storage and capacity for 350 rail cars, handling up to 250 million bushels annually. The terminal receives both trucks and railcars with a variety of commodities for global export.
The same month, CHS announced plans to build a new grain shuttle facility in southeast South Dakota, US. The new 1.1-million-bushel grain facility will include innovative technology and safety features and is being built in a strategic location near the intersection of two major highways in southeast South Dakota, while also tying into an existing rail loop currently used for CHS agronomy operations. The facility will feature fast and efficient receiving and loadout capabilities to bring area farmers even more market access in the Pacific Northwest grain corridor and other important markets.