(Reuters) -Grain merchant Archer-Daniels-Midland Co on Tuesday reported a 96% rise in its third-quarter profit, bolstered by high demand and tight global grain supplies.
Global grain merchants like ADM tend to thrive when crises such as drought or war trigger shortages in parts of the world.
Tight global grain supplies and strong demand for food and fuel have kept grain prices high since Russia’s invasion of Ukraine, which accounted for 10% and 15% of global wheat and corn exports before the war, helping the company’s bottom line.
The Chicago-based crop merchant said the adjusted operating profit from its biggest segment, Ag Services and Oilseeds, rose to $1.08 billion from last year’s $618 million.
“Global demand remains robust… We’re well positioned to end 2022 strong, and carry that momentum into 2023,” said Chief Executive Officer Juan Luciano.
Net earnings attributable to ADM were $1.03 billion, or $1.83 per share, in the three months to Sept. 30, compared with $526 million, or $0.93 per share, a year earlier.
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(Reporting by Arshreet Singh in Bengaluru; editing by Milla Nissi)