The company told the Australian Securities Exchange this morning that the 2009 crushing season was drawing to a close, with more than 80 per cent of the crop harvested and pricing nearly completed with a price of $408 per tonne achieved.

The company’s shares were up 3 cents at $2.35 this morning.

Maryborough Sugar said it was now forecasting a net profit of $5.5 million to $6.5 million against a loss of $800,000 for the just completed financial year. The company expects cane crushed for the 2009 season to increase by 80,000 tonnes over the previous season.

Also bolstering earnings for the group was stronger sugar prices, which are near a 30 year high, and operational efficiencies at its factory.

Earnings before interest, taxation, depreciation and amortisation from its milling operation is expected to be in the range of $11 million and $12 million.

Maryborough Sugar recently launched a bid for the unlisted Tully Sugar business, offering 13 of its shares for each Tully share, valuing Tully at about $90.4 million.

RBS Morgans analyst Belinda Moore said recent press commentary from the Tully board would indicate that they might reject Maryborough Sugar’s offer.

‘‘However, we do not expect Maryborough Sugar to give up given the strong strategic rational of merging the two groups. The combined company would have involvement right along the value chain.

‘‘We see considerable value to be unlocked by this rationalisation. We also expect that there will be significant revenue and cost synergies achieved over time. This deal (if consummated) has the potential to double the size of Maryborough Sugar again.

‘‘Tully is a first class north Queensland Sugar Mill. It is regarded as one of the most productive and profitable in the industry. The acquisition of Tully makes strategic sense and is part of Maryborough Sugar’s strategy to expand into far north Queensland where growing costs are lower and there are opportunities for mills to consolidate.’’