Australian wheat exporter AWB has reported a 61% drop in net profit to A$29.9m (US$19.7m) for the first half to 31 March, due to the impact of the recent drought in Australia.


The company said its first-half sales were $1.03bn, down from $1.56bn a year earlier.


AWB said it now expects full-year profit to be in the range of $40m to $45m, including a profit of around $3.5m on the sale of its head office, reported Dow Jones International News.


Separately, the company said it expects its 1.2 million metric tons worth of contracts with Iraq to be honoured.


“All commentary to date has said that these contracts will be honoured under any scenario,” AWB managing director Andrew Lindberg was quoted by Dow Jones News as saying.