Grain receival company GrainCorp has attributed a $59 million loss in the six months ending March 31, 2019 to drought conditions and international trade disputes.
It follows the announcement of Long Term Asset Partners pulling its $3.3 billion bid.
GrainCorp’s underlying earnings were down from $119 in HY18 to $27 million in HY19
GrainCorp CEO Mark Palmquist said the results reflected a “particularly challenging” period which saw severe drought conditions in eastern Australia, and tumultuous international trade conditions.
“East coast Australian grain production was the lowest in over a decade and this has had a significant unfavourable impact on both our Grains and Oilseeds business,” he said.
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Challenging conditions in eastern Australia are forecasted to continue into the second half of the financial period, according to the company’s outlook.
“Planting for the winter grain crop is well underway in eastern Australia, however it is too early in the season to forecast grain production levels and the potential implications for GrainCorp,” the company said.
Due to the poor financial figures, GrainCorp did not provide shareholders with an interim dividend.
It said its financial performance in the second half would come down to conditions in eastern Australia, the impact of global markets and trade conditions, and foreign exchange movements.