Grain handler and marketer Graincorp has posted half-year net profit up 66 per cent, and has lifted guidance for earnings and profit for the full year.
Graincorp shares jumped on the news, ended the day up 62 cents, or 8 per cent, to $8.38.
Graincorp reported net profit in the first half of 2010/11 of $87.7 million, up 66.4 per cent on the prior first half.
Revenue was 48.7 per cent higher at $1.3488 billion.
Graincorp declared an interim dividend of 15 cents, fully franked, and a special dividend of 5 cents, also fully franked.
Graincorp said the improved result reflected higher grain harvesting volumes in eastern Australia and associated revenues from storage and logistics, ports and trading.
The company lifted its guidance for full-year earnings to $310-340 million, up from $275-310 million, and for annual net profit to $145-165 million, up from $115-135 million.
GrainCorp chief executive officer and managing director Alison Watkins said earnings from grain storage would be higher in the second half of the year than in the previous half.
‘‘Significant revenue will be generated from handling this grain for both export and domestic customers in the second half,’’ Ms Watkins said.
‘‘We expect grain exports to continue to be strong as exporters seek to deliver grain to customers in the lead up to the new season.’’
Ms Watkins said GrainCorp’s new malt house at Pinkenba, in Brisbane, was close to commercial production, to replace production from the Toowoomba malt house, which would close mid-year.
‘‘We expect foreign exchange rates challenges and flat demand in mature beer markets to continue in the short term, and as a result, we expect malt margins to soften into financial year 2012,’’ she said.
Planting of the 2011/12 eastern states cereal, pulse and oilseed crop was well underway, with farmers taking advantage of good subsoil moisture.
Australian Crop Forecasters were predicting an eastern Australian wheat, barley and canola crop of 19 million tonnes, which was three million tonnes lower than the prior corresponding period, but well above the long term average.
‘‘While crop conditions are looking promising in most regions, favourable planting and growing conditions are needed to ensure good germination and a strong harvest outlook,’’ Ms Watkins said.
AAP