By Colin Packham
SYDNEY, Nov 3 (Reuters) - GrainCorp Ltd GNC.AX , Australia's largest listed bulk grain handler, said on Tuesday it expects to post its lowest annual net profit in seven years as dry weather curbs production across the country's east coast.
GrainCorp forecast a net profit of A$32 million ($22.9 million) when it reports its 2015 annual results on Nov. 12, down from A$50.3 million last year. It estimated its underlying net profit at A$45 million.
"Lower grain production in eastern Australia resulted in intense competition to originate grain, while bigger crops and stock levels in other regions also generated strong competition from alternative supply origins," said Mark Palmquist, managing director and chief executive officer of GrainCorp.
"This situation was exacerbated by lower fuel costs and ocean freight rates, which reduced Australia's freight advantage to major export destinations and made Australian grain more expensive, severely limiting the opportunities available."
The result would be the company's weakest since it posted a loss of A$19.9 million in 2008.
Graincorp shares fell as much as 6 percent and were trading down 2.7 percent at 2339 GMT at A$8.65.
The company said it expects to post EBITDA (earnings before interest, tax, depreciation and amortization) of A$235 million.
($1 = 1.3996 Australian dollars)