Company Provides Update on Oilseeds Business Ceres Global Ag Corp. (TSX: CRP) today announced its financial and operating results for the quarter ended December 31, 2021. All amounts are in U.S. currency unless otherwise noted. Second Quarter Highlights (Comparisons to second quarter of fiscal year 2021)
CEO Commentary “A strong second quarter capped the best six-month period in Ceres’ history,” said Robert Day, President and Chief Executive Officer of Ceres. “Despite smaller crops and lower inventories across the industry, we continued to find needed supply for key customers and consistently delivered high quality product on time. Key to our success again this quarter was our solid operational execution and strategic positioning ahead of the 2021 crop year. As a result, we achieved higher net trading margins, higher gross profit and a much-improved bottom line. Contributing to our positive results was our recently expanded soybean crush plant in Jordan, Manitoba, which ran at full capacity during the quarter and produced the best financial results in the plant’s history.” Outlook Mr. Day continued, “We believe grain prices are at or near levels at which demand will continue to be rationed in order to balance limited supply for the remainder of the crop year. Opportunities in the third quarter will continue to present themselves through effective trading and positioning; however, we expect that generating gross margins will become more challenging as inventories continue to diminish.” “Our plans to build an integrated canola processing facility in Northgate, Saskatchewan, remain on track to begin operations in the summer of 2024. The facility will have capacity to process approximately one million metric tons of canola and refine over 500 thousand metric tons of canola oil, for both food and renewable fuel, annually. We have engaged project management and design firms to develop the construction and design for the project, and we continue to make progress around equity partnership and funding.” In its second quarter Management Discussion and Analysis, dated February 9, 2022, Ceres Global Ag provided the following update on its plans to build to build a $350 million integrated canola processing facility in Northgate, Saskatchewan: Regarding growth and development, on May 25, 2021 Ceres announced its plan to build an integrated canola processing facility in Northgate, Saskatchewan, to help meet the current and growing global demand for canola products. The state‐of‐the‐art facility will have capacity to process approximately 1 million metric tons of canola and refine over 500 thousand metric tons of canola oil, for both food and renewable fuel, annually. The Corporation has engaged project management and engineering design firms to develop construction and design plans for the project, which are expected to be finalized late in the third quarter, or early in the fourth quarter of fiscal year 2022. In addition, during the quarter ended December 31, 2021, the Corporation made $10.8 million in deposits and commitments with major equipment suppliers as well as other consulting and engineering fees, which were critical to maintaining the project’s timeline. The facility is expected break ground this year and is targeted to be operational by summer 2024 and will create over 50 full time jobs in Saskatchewan, which is the largest canola producing province in Canada. The Corporation also hired Ascendant Partners, Inc. as an advisor and continues to explore financing options and arrangements with industry partners relating to the project. About Ceres Global Ag Corp.
Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high-quality agricultural commodities, value-added products and raw materials. Leveraging its network of commodity logistics centers and team of industry experts, Ceres connects farmers to customers around the world. Ceres is headquartered in Minneapolis, Minnesota, and together with its affiliated companies, operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 31 million bushels. Ceres has a 50% interest in Savage Riverport, LLC (a joint venture with Consolidated Grain and Barge Co.), a 50% interest in Farmers Grain, LLC (a joint venture with Farmer’s Cooperative Grain and Seed Association), a 50% in Gateway Energy Terminal (an unincorporated joint venture with Steel Reef Infrastructure Corp.), a 25% interest in Stewart Southern Railway Inc. (a short-line railway located in southeast Saskatchewan with a range of 130 kilometers), and a 17% interest in Canterra Seed Holdings Ltd. (a Canada-based seed development company). Source: Ceres Global Ag Corp.
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