CHS Reports Fiscal 2021 Second-Quarter Results

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[{"type":"text","content":"Ag earnings improve significantly; COVID-19 continues to impact Energy business\n\n\nST. PAUL, Minn., April 7, 2021 /PRNewswire/ -- CHS Inc. (NASDAQ: CHSCP), the nation's leading agribusiness cooperative, today released results for its fiscal second quarter ended Feb. 28, 2021. The company reported a net loss of $38.2 million versus net income of $125.4 million in the same quarter in fiscal 2020. Significant year-over-year earnings increases in Ag and Nitrogen Production segments and Corporate and Other businesses were offset primarily by ongoing COVID-19 pandemic-related impacts in Energy.\n\"Improved trade relations between the United States 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, president and CEO of CHS Inc. \"Additionally, favorable growing conditions and overall strength in agriculture, helped drive demand for crop inputs, including crop nutrients and crop protection products and services.\n\"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.\"\nFiscal 2021 second-quarter results reflect: \nRevenues of $8.3 billion versus $6.6 billion in fiscal 2020 second quarter, a 26.1% increase. Energy segment impacts that include: Continued low refining margins stemming from COVID-19-impacts on global energy demand. Exceptionally high costs of renewable energy credits, which decreased margins. Decreased propane margins and volumes due to warm winter weather conditions across the CHS trade territory during most of the fiscal 2021 second quarter. Modest improvements over fiscal 2021 first quarter as volumes and margins began to rebound. Ag segment impacts that include: Favorable weather conditions and improved relations between the U.S. and foreign trade partners, including China, that increased volumes of grain and oilseed commodities as well as feed and farm supplies. Higher margins for certain agricultural products, including processing a...

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