Denver-Intrepid Potash Inc. reported net income for the first quarter ending March 31, 2009, of $24.7 million ($.33 per diluted share) on sales of $88.9 million, compared to the year-ago pro forma $19.3 million ($.26 per share) and $84.4 million, respectively. EBITDA increased to $43.6 million, up 20 percent from the year-ago $36.2 million. These positive results come despite a significant decrease in potash sales volumes – to 99,000 st with an average selling price of $727/st, versus the year-ago 213,000 st and $295/st, respectively. Prices were down from the fourth quarter 2008’s $762/st, while margins were $423/st, up from the year-ago $149/st. Production volumes were 137,000 st, down from 224,000 st. Langbeinite (Trio) sales were down to 38,000 st ($330/st) from 93,000 st ($123/st), and production dropped to 42,000 st from 56,000 st. Prices were up from the fourth quarter’s $323/st. Margins were $144/st, up from the year-ago $23/st. “Despite the current economic headwinds, we were able to sell more tons sequentially than in the fourth quarter, achieve higher net income than a year ago, realize substantial EBITDA, and maintain the strength of our balance sheet,” said Intrepid CEO Bob Jornayvaz. “Looking forward in the near term, we believe that potash usage will remain below rates needed to replace nutrient removal. On a long-term basis, we continue to look at the 25-year history of annual potash consumption in the U.S. that has averaged approximately 10 million tons.” He added that the volatility of this average has been less than 10 percent, and that the traditional demand profile will return.
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