ST. PAUL, MINNESOTA, US — Financial performance remained strong across segments for the year, CHS, Inc. said, but was down compared to historically strong results.

The company’s net income dropped to $1.1 billion for the fiscal year ended Aug. 31, down from $1.9 billion a year ago. Consolidated revenues also dropped to $39.3 billion from $45.6 billion due to lower commodity prices.

Less favorable refining margins led to weaker Energy segment results and Ag segment earnings declined due to softening oilseed crush margins and global conditions that drove down margins for US grain exports, CHS said.

“Our earnings for fiscal year 2024 were solid, thanks to the support of our owners and customers around the world,” said Jay Debertin, president and chief executive officer. “CHS intends to return $600 million in cash patronage and equity redemptions to our farmer-owners and member cooperatives in fiscal year 2025, as we continue to share profits with those that work with us to empower agriculture and help feed people around the globe.

"We remain committed to strategically investing in strengthening our grain, agronomy and energy supply chains to provide end-to-end value and enhance market access for US growers. As our industry navigates a challenging market environment, CHS is focused on efficiency and managing costs while still enhancing customer experience and driving growth on behalf of our owners.”

The Energy segment saw pretax earnings of $429.1 million, down from $646.4 million in the prior year. The drop reflects a substantial reduction in refined fuels earnings due to the negative impact of industry trends on refining margins and less favorable pricing of heavy Canadian crude oil.

Reduced costs for renewable energy credits partially offset the impact of unfavorable market conditions

Ag segment pretax earnings dropped $69.1 million, to $342.7 million, for the year.

CHS attributed the decrease to weaker crush margins due to an increased global supply of canola and soybean oil and meal. The weaker margins were partially offset by operational and logistical efficiencies at CHS oilseed crush plants, the company said.