WATER investor and agribusiness Tandou Limited has announced a profit before tax from continuing operations of $1.204 million.
The result is a $1.557 million improvement on the first six months to December 31 compared to the previous reporting year.
According to a company statement at December 31, 2011 Tandou held total water entitlements of 49,968 megalitres, with a current market value of $53.207 million.
Tandou Farm harvested its 2400 hectare durum wheat and malting barley crops during December yielding almost 11,300 tonnes at an average of 4.7 tonnes per hectare.
Tandou's record 2012 cotton crop of 6660 hectares, a 65 per cent increase on 4028ha last year, will be harvested with the majority of revenue recognised in the second half of this financial year.
According to the company it has secured forward prices for its Upland crop of 34,200 bales at A$523 per bale and Pima crop of 4,000 bales at A$940 per bale.
Tandou is also preparing 3500ha cereal planting this autumn.
Tandou has further expanded its Dorper sheep and organic lamb production including the acquisition of neighbouring property Willotia Station which settled last month, it said.
Tandou's pastoral operations now comprise over 180,000ha and breeding ewe numbers of about 15,000.
Tandou managing director Guy Kingwell said: "Tandou has a strong balance sheet and trading conditions for its cropping, pastoral and water businesses are all profitable"."The company is delivering earnings growth and increasing its operational scale. Menindee Lakes will receive continuing inflows from recent flood events in Queensland and New South Wales ensuring full cropping production at Tandou Farm for at least the next two seasons," he said.