Mosaic profit beats on higher potash sales

Mosaic profit beats on higher potash sales

Reuters

Published Tuesday, Nov. 01, 2016 7:13AM EDT

Last updated Tuesday, Nov. 01, 2016 7:37AM EDT

 

Mosaic Co, the world’s largest producer of finished phosphate products, reported an adjusted quarterly profit that handily beat estimates as the company sold more potash than it had expected.

The Plymouth, Minnesota-based company sold 2.2 million tonnes of potash in the three months ended Sept. 30, compared with its forecast of 1.8-2.1 million tonnes, and up from 2.1 million tonnes last year.

Still, the average realized price of $160 per tonne of potash, was much lower than $265 per tonne a year earlier.

Fertilizer prices have fallen steeply, triggered in part by weak currencies in importing countries such as Brazil, and excessive supplies.

Larger rival Potash Corp of Saskatchewan Inc last week reduced its profit guidance for the year, saying that a recovery of the potash market would take more time, and recorded higher than expected quarterly earnings.

Mosaic said it sold 2.5 million tonnes of phosphate in the third quarter, at an average price of $326 per tonne of diammonium phosphate, compared with 2.1 million tonnes at $451 per tonne a year earlier.

Mosaic’s net earnings fell to $39.2-million, or 11 cents per share, from $160-million, or 45 cents per share, a year earlier.

Excluding items, profit was 33 cents per share, much higher than analysts’ average estimate of 10 cents per share, according to Thomson Reuters I/B/E/S.

The U.S. fertilizer company said net sales fell 7.3 per cent to $1.95-billion, but beat estimates of $1.92-billion. (Reporting by Ismail Shakil in Bengaluru and Rod Nickel in Winnipeg, Manitoba; Editing by Sriraj Kalluvila and Shounak Dasgupta)

 

 

 

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on November 1, 2016, in economic impact, potash. Bookmark the permalink. Leave a comment.

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