News: GNC UPDATE 1-Australia's GrainCorp annual loss shrinks, sees growth in 2021 earnings

(Adds outlook)

Nov 12 (Reuters) - GrainCorp (GNC) said it expects growth in earnings next year from a strong winter crop and posted a smaller annual loss for 2020 on Thursday, as restructuring efforts by the Australian bulk grain handler as well as stronger oilseed crush volumes and margins helped.

After battling a three-year drought that ravaged farms across eastern Australia and wilted output, GrainCorp's fortunes turned earlier this year as better rainfall and the restructuring of grain contracts helped it post a profit for the first half.

While the COVID-19 pandemic and the lockdowns wreaked havoc on economic activity, food and agriculture were deemed essential services, helping the Sydney-based firm hold steady during the downturn.

GrainCorp said it expects growth in earnings in fiscal 2021 due to a larger winter crop from the eastern coast and continued benefits from the recent restructuring.

In its agribusiness, the company said it expected a "very strong" 2020-2021 winter crop, based on improving growing conditions and the amount of grain received so far.

Strong oilseed crush margins were also expected to help the company's processing segment, GrainCorp said.

Underlying net loss after tax from continuing operations was A$16 million ($11.65 million) for the year ended Sept. 30, smaller than A$158 million posted last year that was caused by an extended period of drought in eastern Australia.

The company declared a dividend of 7 cents per share for the full year. It had not paid shareholders last year.

($1 = 1.3731 Australian dollars)