Ceres Global Ag Reports Financial Results for Third Quarter 2016
TORONTO, ON, (February 10, 2016) – Ceres Global Ag Corp. (TSX: CRP) (“Ceres” or the “Corporation”) today announced its financial and operational results for the three- and nine-month periods ended December 31, 2015. All amounts are in Canadian currency unless otherwise noted.
“Declining wheat prices and the unprecedented influx of new supply from foreign markets due to the strength of the US dollar significantly impacted our Q3 gross profit and margins,” said Mr. Patrick Bracken, CEO of Ceres Global Ag. “Despite these challenging market conditions, we achieved a number of key milestones relating to the buildout of our Northgate project. Chief among them was the Phase 1 completion of our high-speed elevator, the commissioning of three storage bins with 960,000 bushels of storage capacity and the signing of a partnership agreement with Koch Fertilizer to store and handle fertilizer products at Northgate. This progress provides clear evidence that we are executing on our strategy of building a world-class logistics hub at Northgate.”
Financial and Operational Highlights for Q3 FY2016
- Generated revenue of $82.3 million, up 18% from Q3 FY 2015.
- Incurred a gross loss of $10.4 million, largely due to durum wheat losses of $11.7 million.
- Excluding the durum wheat loss, generated a trading margin of $0.73 per bushel for all other cereal and oilseed commodities.
- Incurred a net loss of $13.4 million compared to net income of $2.3 million for Q3 FY2015.
- Completed Phase 1 construction of the high-speed elevator at the Northgate Commodity Logistics Centre (Northgate) on time and budget. The construction included the commissioning of the three steel storage bins totaling 960,000 bushels of storage capacity, two truck unloading pits and a rail loadout system.
- Loaded two 100-plus rail car shuttle trains out of Northgate.
- Loaded 312 railcars of grain and/or oilseed destined for the U.S. and Latin American markets out of Northgate.
- Loaded 163 railcars of propane on behalf of a third-party customer at Northgate.
- Handled 10.8 million total bushels at the Corporation’s 9 grain facilities, up 13%.
- Entered into an agreement with Koch Fertilizer Canada, ULC (“Koch”) to store and handle dry fertilizer products at Northgate.
- Renewed a USD $120 million revolving credit facility with Macquarie Bank through December 18, 2016.