Potash Corp. of Saskatchewan Inc. reported fourth-quarter net income of $59 million ($0.07 per diluted share) on sales of $1.06 billion for the fourth-quarter ending Dec. 31, 2016, down 70 percent from the year-ago $201 million ($0.24 per share) and $1.35 billion, respectively.
Full-year income was off 73 percent to $336 million ($0.40 per share) on sales of $4.46 billion, down from $1.27 billion ($1.52 per share) and $6.3 billion, respectively. The company gave 2017 full-year guidance of $0.35-$55 per share, which includes $0.05 per share for merger-related costs.
The company was the most upbeat on potash, saying that Canpotex had record second-half shipments in 2016 and is fully committed for first-quarter 2017. It also cited improved prices, lower production costs from expansions, healthy underlying consumption trends and lower dealer inventories in most key buying areas. Overall, it expects a balanced market in 2017.
In nitrogen, PotashCorp sees a transition year as the industry works its way through new capacity.
The company is assessing its phosphate assets for a potential impairment, though it cautioned that this would not be significant to the company’s operational outlook. It expects challenging market fundamentals in 2017 and noted record fourth-quarter Chinese exports and slow demand in India, despite stronger shipments to Latin America.