ST. PAUL, MINNESOTA, US — Despite a drop from record earnings a year earlier, CHS Inc. said earnings for the first quarter ended Nov. 30, 2023, were strong.

The company posted net income of $522.9 million, down 33% from $782.6 million in the same quarter a year earlier. Revenues fell to $11.4 billion from $12.8 billion a year ago.

“CHS earnings were strong for the first quarter, despite a relative decline from last year’s record earnings,” said Jay Debertin, president and chief executive officer of CHS Inc. “Our focus on execution and efficiency improvements bolstered results across all operations. We continue to see the benefits of our diversified ag and energy portfolio, our strategic footprint and investments in our supply chain. The success of our domestic soybean and canola processing business and our international origination capabilities have helped us add value to our farmer-owners’ businesses.”

The Ag segment saw pretax earnings drop by $117.6 million to $169.7 million on decreased margins for the company’s grain and oilseed and oilseed processing businesses. The decrease primarily was due to mark-to-market timing adjustments and weak US export demand, CHS said.

Energy pretax earnings dropped by $129.8 million to $266.8 million on decreased margins compared to the highs in the previous year due to trade flows returning to more normal levels.

CHS also noted the segment was affected by more favorable costs for renewable energy credits and higher margins in its propane business.