Global Downcycle Hurts CHS' Fiscal 2015 Earnings
ST. PAUL, Minn. — CHS Inc., operator of petroleum refineries and pipelines and manufacturer, marketer and distributor of Cenex-branded refined fuels, lubricants, propane and renewable energy products, announced that earnings for its 2015 fiscal year came in at $781 million, down 28 percent compared to the $1.1 billion the company earned in fiscal 2014.
For the year ended Aug. 31, CHS’ revenues were $34.6 billion, down 19 percent from the $42.7 billion it earned in revenues during fiscal 2014.
“Our core businesses of agriculture and energy have entered a downcycle that affected both earnings and revenues for fiscal 2015,” said Carl Casale, president and CEO of CHS. “Nonetheless, we continue to fulfill our commitment to our owners by making significant investments in the future of our businesses; providing direct economic returns; and maintaining a strong financial foundation for the future.”
CHS attributed the primary cause of the earnings decline to reduced refining margins, resulting from maintenance turnarounds at its Laurel, Mont., and McPherson, Kan., refineries.
The company also cited declines in its propane business due to lower margins and demand for both fall 2014 crop drying and winter 2014-2015 heating use.
On a positive note, CHS reported record earnings in its lubricants business.
St. Paul-based CHS Inc. is a global agribusiness owned by farmers, ranchers and cooperatives across the United States. In fiscal 2015, the company returned $533.8 million to its owners in cash patronage, equity redemptions, preferred stock and dividends on preferred stock based upon its fiscal 2014 earnings.