SASKATOON – Alberta Wheat Pool turned in its best performance since 1984 in 1995-96, posting net earnings of $28.2 million on total sales of $2.13 billion.
The pool credits its profit, up from $6.9 million in 1994-95, mainly to results of Western Co-operative Fertilizers Ltd.
The three Prairie pools own WCFL which has a 34 percent stake in Canadian Fertilizer Ltd., a nitrogen producer in Medicine Hat.
“That’s because of the general increase in the price of fertilizer and fertilizer ingredients … as those commodity prices go up, WCFL benefits,” said Geoff Southwood, Alberta Wheat Pool chief financial officer.
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The pool will not release the full year end financial results until they are given to the co-operative’s delegates, he said.
In a release Oct. 4, the pool said gross revenues were up a little more than four percent and predicted with a big crop and improvements in its grain handling network, it should have a good 1996-97.
At the co-op’s annual meeting in November, delegates will recommend a $19.8 million patronage dividend.
The pool received the same amount of grain during the year as it did in 1994-95, the release said. But because the year began with the company’s system almost empty, the total amount shipped during the year was down about 900,000 tonnes to 5.5 million tonnes.
Perhaps the most significant financial event during the past year was the company’s success last October in securing $100 million in long-term debt.
“We sold out the initial $85 million offering in six days,” he said, adding the good reception convinced the company to expand the offering to $100 million. The pool used the money to retire its bank loans.
“That gave us a better match of long-term financing supporting our long-term assets,” he said.
The money will help the pool to renew its grain handling network.
“Our capital spending last year, which was $26 million, will be more in the order of $40-$50 million in 1997,” he said.
Alberta Wheat Pool has 57,000 members, 1,366 employees and has facilities in Alberta, British Columbia, Manitoba, Minnesota and Montana.
