DRY bulk exporter GrainCorp has noted the impact of severe drought in its results for the half year ending 31 March.

GrainCorp reported an underlying net loss after tax of $48m and a statutory net loss after tax of $59m.

Chief executive Mark Palmquist said these results reflected a particularly challenging period, with severe drought in eastern Australia and grain flows disrupted by grain 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 businesses,” Mr Palmquist said.

He noted some improvements, however, by way of malt, feeds and bulk liquid terminals operations and in its safety focus.

The board has determined that GrainCorp will not pay an interim dividend.

In a statement, GrainCorp said it expected continued robust demand for malt products in the 2019 northern hemisphere summer and further benefits from the continuous foods improvement program.

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