GrainCorp has upgraded its full year profit guidance by up to 50 per cent following a boost in grain receivals driven by demand from new bulk wheat exporters.
The company this morning said it now expects a net profit for the year ending September 30 between $53 million and $63 million, up from earlier guidance of a result between $37 million and $42 million.
In early trade, GrainCorp shares jumped 44 cents, or 5.9 per cent, to $7.94.
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GrainCorp said the key drivers of its fiscal 2009 profit include higher than expected grain receivals, which are on target to exceed 9.5 million tonnes, higher than expected export tonnage and higher than budgeted export sales.
Export tonnage through its port terminals is expected to between 4.5 million tonnes and five million tonnes for the year.
"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," managing director Mark Irwin said in a statement.
GrainCorp provides port terminal services to more than 10 bulk grain exporters.
"While our port earnings have recovered and the result is pleasing, they need to be looked at in the context that the earnings boost in fiscal 2009 follows two years of low export tonnage and association terminal operation losses.
"The prospects for another good winter grain harvest remain, with crops having been established in ideal conditions in most areas, but finishing rain across the grain belt is needed."
In fiscal 2008, GrainCorp made a net loss of $19.94 million, due to drought conditions in Queensland, New South Wales and Victoria.
The new guidance released on Monday was second upgrade in GrainCorp's earnings outlook since it forecast a profit between $23 million and $28 million in February.
It had lifted that estimate to between $37 million and $42 million in May.
GrainCorp said on Monday that its grain receivals were boosted by post harvest deliveries to its site of more than one million tonnes, which indicated significant movement of grain from on-farm storage into the GrainCorp network.
This had been driven by demand from new bulk wheat exporters.
Earnings from the provision of port terminal services had also been boosted by significantly higher than average sorghum export volumes through its terminals at Mackay, Gladstone, Fisherman island and Carrington, following two sorghum crops that were significantly above average.
AAP
