GrainCorp has issued a revised net profit after tax forecast range for the year ending September 30 of $53-$63 million, up from its previous forecast of $37-$42m.

 

In a statement to the media the company said the key drivers of the NPAT upgrade included: higher than expected grain receivals, on target to exceed 9.5 million tonnes; higher than expected export tonnages through GrainCorp port terminals to be between 4.5mt and 5.0mt; and higher than budgeted export sales by GrainCorp Trading.

GrainCorp says grain receivals in full-year '09 were boosted by post harvest deliveries to its sites of more than 1mt, an indication of a significant movement of grain from on-farm storage into the GrainCorp network.

It says this was driven primarily by demand from new bulk wheat exporters and their preference for accumulating export cargos from bulk networks.

Earnings from the provision of port terminal services have been boosted by significantly higher than average sorghum export volumes through GrainCorp terminals at Mackay, Gladstone, Fisherman Islands and Carrington, following 2 sorghum crops that were significantly above average.

"The higher than expected export tonnage demonstrates that the removal of the bulk wheat export monopoly has encouraged more competition in the Australian wheat market, and is driving a more robust export program," GrainCorp managing director Mark Irwin said.

"GrainCorp provides port terminal services to more than 10 bulk grain exporters, most of whom are exporting wheat.

"The number of customers we service shows the effectiveness of our long standing policy of providing open access to all exporters."

 

Source: The Land