Saskatchewan Wheat Pool posted more losses in the second quarter as it struggled to cope with a drought-reduced crop and poor harvest conditions.
The company posted a net loss of $18.8 million in the three months ending Jan. 31 compared to a loss of $26 million in the same period last year. Last year’s figure included a one time provision of $13.2 million.
Second quarter EBITDA, or earnings before interest, taxes, depreciation and amortization, was a loss of $3.3 million compared to a gain of $ 17.68 million last year.
Mayo Schmidt, chief executive officer, said results were not a surprise.
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“Operating results for the quarter are in line with expectations and reflect the severe production declines coming off last year’s harvest,” he said in a News release
news.
Core operating, selling and administration costs declined by $16.2 million during the period.
He said the remainder of the year will be a challenge, particularly in the grain operation. The company narrowly missed bankruptcy last month. The last-minute compromise with bondholders and bankers to restructure its debts was formalized on March 14.
Shipments from primary elevators in the second quarter were 1.2 million tonnes for a six month total of 2.8 million tonnes, down 32.7 percent from the previous year.
The company said its handlings were better than the prairie-wide 45 percent drop in wheat and barley shipments and the 56 percent drop in shipments from Saskatchewan.
Volumes through the pool’s port terminals were down due to the drought and because terminals in Vancouver including the pool’s were closed due to a labour-management dispute.
Overall, the company’s revenue was $501 million for the period, compared to $774 million for the same period last year.
Offsetting poor revenue in the grain handling sector, agri-product sales were up 22.7 percent, due to stronger fertilizer sales and higher nitrogen prices, along with increased crop protection product and seed sales.
But interest revenue was no longer generated because the pool no longer runs its owns agri-products financing program.
Agri-food processing sales reflected substantial declines at Prairie Malt partially offset by sales gains at Can-Oat. Results reflect the lack of quality malt barley in Western Canada. At Can-Oat, results were on par with last year.
