GrainCorp boss has no fear of El Nino as farmers count down to harvest

afr.com:

GrainCorp boss Robert Spurway says the company can cope well with adverse weather conditions as forecasts point to an end to a golden run of harvests.

Mr Spurway said the Bureau of Meteorology’s declaration this week of the official onset of an El Nino weather pattern simply confirmed what farmers and GrainCorp already knew.

GrainCorp boss Robert Spurway says the company can cope well with adverse weather conditions. Eamon Gallagher

“All that the bureau did was put a label on what every farmer knows – the last few weeks and the forecast over the next number of weeks looks a little bit warmer and drier than we’ve seen versus the past three years,” he said.

“The drivers and the climate models have been well understood, and I think they’re included in farming forecasts but also our own forecasts and planning.”

Mr Spurway has led GrainCorp through three bumper harvests since taking over as chief executive in March 2020, just as an east coast drought that hit earnings and stirred up a takeover offer started to break.

The next year shapes as tougher for GrainCorp and farmers who rely on its vast storage and handling network across Queensland, NSW and Victoria.

“One thing the market is very aware of is that we’ve got an exceptionally strong balance sheet and that also sets the business up well to deal with whatever the weather throws at us,” Mr Spurway said.

“We’re good, but we can’t control the weather. What we can do is prepare and make sure that we’re ready to respond to whatever conditions we have to face.”

GrainCorp’s financial year ends on September 30. In May, it upgraded guidance on several fronts, saying it expected to report full-year EBITDA of $500 million to $560 million and net profit of $220 million to $260