MAUMEE, OHIO, US — Buoyed by record performance from its Trade segment in the fourth quarter, overall net income at The Andersons in the fiscal year ended Dec. 31, 2022, increased to $167 million, up from $135.9 million in the previous year.

Net income in the fourth quarter was $15.1 million, down from $62.3 million in the same quarter a year ago.  

“We finished the year with strong fourth-quarter results, particularly in our Trade segment,” said Patrick E. Bowe, president and chief executive officer.  “Our merchandising teams and grain assets had outstanding results from improving basis after harvest, sales into destinations experiencing crop deficits, storage income and rising propane values. With another record quarter, our Trade business is positioned to execute well in these favorable markets with continuing strong ag fundamentals.”

Trade posted pretax income of $27 million and record adjusted pretax income of $52 million in the fourth quarter, 50% more than pretax income of $18 million and nearly double adjusted pretax income of $27 million in the fourth quarter of the prior year.

Results were driven by strong elevation margins in core grain assets and merchandising.

Ag supply chain opportunities are expected to remain strong in 2023, the Andersons said. Continued worldwide demand coupled with supply uncertainty due to the ongoing war in Ukraine and potential weather impacts in global grain production regions, continues to keep commodity prices relatively high and provide ongoing merchandising opportunities.

Trade’s fourth-quarter adjusted EBITDA was $72 million, which is 71% higher than fourth quarter 2021 adjusted EBITDA of $42 million. Full-year adjusted EBITDA increased from $151 million in 2021 to a record $199 million in 2022.

The Renewables segment reported pretax income of $19 million and pretax income attributable to the company of $13 million in the fourth quarter compared to record pretax income of $59 million and pretax income attributable to the company of $27 million in the same period of the prior year.

Ethanol board crush margins for the 2022 fourth quarter were down over $0.90/gallon from the strong fourth quarter of 2021. Renewable diesel feedstock merchandising results improved with the volume merchandised more than double the fourth quarter of 2021.

Sales volumes for ethanol, corn oil, and feed ingredients were up, driven by higher production and additional third-party sales from the merchandising business.

Renewables recorded EBITDA of $36 million in the fourth quarter of 2022, compared with 2021 fourth quarter EBITDA of $78 million. For the full year, Renewables recorded EBITDA of $180 million in 2022, an increase of $14 million from 2021.

“We enjoyed very good results in renewable fuels on solid renewable feedstock values but didn’t experience the outsized ethanol margins that occurred in the fourth quarter of 2021 due to supply chain disruptions,” Bowe said. “The ethanol crush margin outlook is currently challenged but we expect this to improve with seasonal maintenance shutdowns and increased driving demand.”