Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

Bunge reported first quarter 2020 results: Q1 GAAP EPS of $(1.46) vs. $0.26 in the prior year

07.05.2020 16:50 "Agro Perspectiva" (Kyiv) Q1 GAAP EPS of $(1.46) vs. $0.26 in the prior year; $(1.34) vs. $0.36 on an adjusted basis

Agribusiness executed well; results impacted by approximately $385 million of temporary

mark-to-market losses on forward hedges

Strong quarter in Edible Oils; results impacted by timing differences

Progress on portfolio optimization with the announcement to sell 35 US grain elevators

Implemented additional safety measures in response to COVID-19

Maintaining strong liquidity position and durable balance sheet

Overview

Greg Heckman, Bunge’s Chief Executive Officer, commented, «I am incredibly proud and grateful for our teams commitment and performance during this highly challenging period. Bunge is a critical part of the global food infrastructure, and our team remains dedicated to ensuring that key feed and food ingredients

are getting from farmers to consumers as we navigate this global crisis together.

»Our underlying business performed well during the quarter, and the mark-to-market adjustments we incurred are expected to reverse in the coming quarters. The work we have done to improve our operations, streamline our portfolio, and refine our approach to risk management has allowed us to remain nimble and adapt to evolving business and operational demands. We did not experience significant disruptions to our business from COVID-19 in the first quarter, although we did start to see the impact of changing consumer behavior in parts of our Edible Oils business in March.

«Without question this will continue to be a challenging year, but we have a strong platform, a resilient team, and a remarkable base of customers on both ends of the supply chain that will allow us to continue to perform our critical role in the global food infrastructure and drive value along the way.»

First Quarter Results

Agribusiness

In Oilseeds, average soy processing margins were lower in all regions compared to a strong prior year, with the exception of China, which benefited from tight soymeal supplies and reduced bean availability.

Average softseed processing margins were higher in all regions. As COVID-19 began to spread globally, concerns about soymeal availability caused global oilseed processing margins to spike toward the end of the quarter. As a result of these increasing processing margins, we incurred approximately $100 million of mark-to-market losses related to forward oilseed crushing contracts. In addition, as vegetable oil values declined during the quarter, we recorded a mark-to-market loss of $195 million on forward hedges related to our oil pipeline that serves our downstream Edible Oils customers. We expect the majority of these timing losses to reverse during the course of the year.

Results in Grains were primarily driven by origination in Brazil as the pace of farmer commercialization accelerated in response to an increase in local prices caused by the devaluation of the Brazilian real.

Ocean Freight also had a strong quarter, benefiting from excellent execution; however, results were impacted by approximately $90 million of mark-to-market losses, primarily related to forward bunker fuel hedges, driven by the decline in global energy prices. We expect the majority of these timing losses to

reverse during the course of the year.

Edible Oil Products

Higher results in North America, Europe and Argentina were more than offset by lower results in Brazil and Asia. Excluding approximately $20 million of net unfavorable timing differences, $6 million of which are expected to reverse in future periods, results were higher than prior year. The impact of COVID-19

was relatively limited as lock-downs and restrictions varied by region. However, toward the latter part of the quarter, we started to see reduced demand from foodservice and biofuel channels.

Milling

Improved performance in Brazil, which benefited from higher volumes from food processors, was more than offset by lower results in North America due to a decline in margins from lower yields.

Sugar & Bioenergy

Segment results for this quarter reflect our share of the earnings of our 50/50 joint venture with BP. By contrast, first quarter 2019 results reflected our 100 percent ownership of the Brazilian sugar and bioenergy operations that we contributed to the joint venture in December 2019. Additionally, results of

the joint venture are reported on a one-month lag.

The loss in the quarter reflects the seasonally slow intercrop period, as well as approximately $25 million in foreign exchange translation losses on U.S. dollar denominated debt of the joint venture due to depreciation of the Brazilian real.

Fertilizer

Higher segment results reflect improved performance in our Argentine operation which benefited from higher margins, which more than offset lower volume.

Cash Flow

Cash used by operations in the quarter ended March 31, 2020 was $439 million compared to cash used of $402 million in the same period last year. Adjusting for the beneficial interest in securitized trade receivables, cash used by operating activities was $9 million compared with cash used by operating activities of $158 million in the prior year. This increase was primarily driven by improved working capital management.

Income Taxes

For the quarter ended March 31, 2020, the Company recognized an income tax benefit of $55 million.

Agro Perspectiva

< Global food commodity prices drop further in April All news for
07.05.2020
Kazakhstan. Wheat production is expected to recover in MY 2020/21 to 13.5 MMT >

18.09.2023  
13:55 Ukraine will sue Poland, Hungary and Slovakia over agricultural bans
15.09.2023  
21:02 Following the expiry of the restrictive measures on Ukrainian exports of grain and other foodstuff to the EU, Ukraine agrees to introduce measures to avoid a renewed surge in EU imports
13.09.2023  
17:54 Biodel AG Secures Series A Investment from Pangaea Ventures to Advance Novel Regenerative Agriculture Technologies
07:25 Rice Export Prices Highest in 15 Years as India Restricts Trade
11.09.2023  
17:54 Export Bans, Black Sea Tensions, Affecting Food Markets - WTO Agriculture and Commodities Division
09.09.2023  
18:36 Global cereal production forecast to match past record - FAO
14.08.2023  
13:22 EBRD provides EUR60 million guarantee to support lending by Ukraines PrivatBank
13:18 Supporting small business in the west of Ukraine via Bank Lviv
12.08.2023  
18:35 Russia Withdraws from Black Sea Grain Initiative
04.08.2023  
19:32 Falling international maize and sugar prices partly offset notable jumps in wheat and vegetable oil quotations
28.07.2023  
19:25 Cargill and partners announce first Gold Standard-approved methane emissions reduction methodology for beef producers
19:21 FAO welcomes European Union contribution of 25 million to advance wildlife conservation and food security
18:55 BASFs earnings in tough market environment significantly below strong prior-year quarter
24.07.2023  
00:45 Brazil continues to make export gains and set new records for beef, pork, and chicken meat
23.07.2023  
22:25 122 million more people pushed into hunger since 2019 due to multiple crises, reveals UN report
22.07.2023  
08:17 U.S. dairy exports to Southeast Asia have been weak to start 2023
13.07.2023  
07:00 Russia Exports Record Wheat Volumes; Ukraine Exports Plummet
08.07.2023  
09:00 FAO Food Price Index continued declining in June
06.07.2023  
20:10 Global agricultural and food production are projected to continue to increase over the next ten years
04.07.2023  
19:54 EBRD supports Ukrainian city of Dnipro with EUR25 million loan
09:03 Nibulon invests EUR 27 mln in construction of granary, flour mill in Izmail
23.06.2023  
08:57 World coffee production for 2023/24 is forecast 4.3 million bags higher than the previous year to 174.3 million
08:55 Mexicos Production Recovering from Coffee Leaf Rust
22.06.2023  
04:05 EBRD and Ukraine government to mobilise 600 million for Ukraine energy security
21.06.2023  
20:26 EBRD and Ukraine government to mobilise EUR600 million for Ukraine energy security
11.06.2023  
15:55 Argentina ramps up soybean imports from Paraguay and Brazil
10.06.2023  
04:35 World Oceans Day must be Humans Day: FAO Fisheries chief
09.06.2023  
11:24 EU extends trade benefits for Ukraine
05.06.2023  
11:25 2023/24 Grain Production Exceeds Consumption
02.06.2023  
11:45 Rebound seen for global cereal output, with worldwide stocks set to hit record levels
11:35 Significant drops in international quotations for wheat, maize, vegetable oils and cheese, while prices of rice, sugar and meat rise
01.06.2023  
11:56 Conflict Drives Acute Hunger in the Democratic Republic of Congo - UN agencies warn
31.05.2023  
12:29 Three New Foods and Their Applicable Food Safety Standards
30.05.2023  
11:55 Haiti: Nearly half of the population is facing acute hunger
11:34 Increasing risk of hunger set to spread in hotspot areas as the Sudan crisis spills over into subregion and el Niño looms - warns new UN report
28.05.2023  
12:51 Black Sea Grain Initiative not fully resumed UN
25.05.2023  
15:52 Ukrainian FM urges African Union to demand that Russia stop obstructing work of grain corridor
20.05.2023  
11:49 Grain initiative talks continue considering proposal of UN Secretary General Dpty Minister of Restoration
05.05.2023  
14:45 The FAO Food Price Index rebounded slightly in April
28.04.2023  
09:15 Yara . 1Q results impacted by falling prices, but tighter nitrogen market into 2Q
21.04.2023  
22:10 Ukraine sees no reason to ban Ukrainian grain imports by EU countries - Solsky
18.04.2023  
21:45 $5 million from FAO-China South-South Cooperation Programme will assist in building more resilient agrifood systems
21:05 China Becomes Worlds Largest Wheat Importer in 2022/23
14.04.2023  
09:52 EBRD and Spain join forces to support Ukraines food security and municipal sector
05.04.2023  
13:10 Astarta starts 2023 planting season
31.03.2023  
00:27 War in Ukraine continues to impact EU farmers
28.03.2023  
22:17 Ukraine sends 150,000 tonnes of wheat to Asia
12:00 Global onion prices are at record-high levels due to a global shortage of onions
12.03.2023  
06:17 It will enrich Egypt if a kilo of onions costs HUF 1,000
10.03.2023  
11:03 Plummeting Argentina Soybean Production Impacts Global Soybean and Products Trade

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2023 © Agrarika, ltd.
tel.: +380 67 4473802; +380 67 5964652
e-mail: client@agroperspectiva.com