GRAINCORP handled a total of 34.8 million tonnes of grain in the half year ending 31 March, an 8% decrease on the same period last year.

GrainCorp operates in the ports of Brisbane, Newcastle, Geelong, Gladstone, Mackay, Port Kembla and Portland.

The company’s agribusiness posted an EBITDA of $254 million, down 32% from last year’s record of $376 million.

But GrainCorp said its east coast Australia business had an “excellent all-round performance”, while the international business benefited from strong execution from Western Australia.

The company’s processing business posted an EBITDA of $103 million, up 47% on the first half of 2022.

GrainCorp managing director and CEO Robert Spurway described the company’s EBITDA of $383 million as an excellent result.

“Both our business segments – Agribusiness and Processing – contributed to the strong performance, with outstanding operational execution and solid supply chain margins,” Mr Spurway said.

“We saw good ongoing demand for Australian grain and oilseeds, and this was supported by a third bumper crop in east coast Australia.

“GrainCorp’s export program ran at close to full capacity with 4.4 million metric tonnes of grain and oilseeds exported during the half.

“Export supply chain margins remained solid, albeit not at the levels we experienced last year.”

Looking ahead, GrainCorp has upgraded its 2023 financial year earnings guidance to between $500 million and $560 million – it was previously between $470 million and $530 million.

Mr Spurway said the company is seeing good global demand for Australian grain and oilseeds and expects strong exports to continue in the second half.

“Our Oilseeds business is performing exceptionally well, with high volumes and crush margins,” he said.

“East coast Australia conditions have been generally favourable leading into the 2023/24 winter crop planting period, with good rainfall to date across most areas.

“As the ECA winter crop develops, this will influence activity and margins both in the fourth quarter of FY23 and into FY24.

GrainCorp said its guidance for 2023 financial year remains subject to a range of variables, including second half grain receival and export volumes, supply chain margins, oilseed crush margins and the outlook for 2023/24 winter crop.

“Overall, GrainCorp is extremely well positioned, with our businesses performing well, a balance sheet that continues to strengthen and a pipeline of strategic growth opportunities,” Mr Spurway said.