Itafos, Toronto, reported improved results for fourth-quarter and year ending Dec. 31, 2020, despite a disruption in sulfuric acid supplies to its Conda, Idaho, plant (GM Feb. 19, p. 1; Dec. 18, 2020), as well as the idling of its production facility in Arraias, Brazil.
“Despite many challenges throughout 2020, we delivered financial results in line with our expectations,” said G. David Delaney, Itafos CEO. “During the fourth quarter we began to see improvements in both the agricultural and phosphate fundamentals, which we expect to benefit our 2021 performance.
“In addition to the improved phosphate fundamentals, we put plans in place during the fourth quarter to optimize the cash returns of the business by looking at capital-lite alternatives to capital spending and our continuation of the company wide cost savings plans,” he added.
The company reported a fourth-quarter net loss of $2.5 million on revenues of $75.1 million, compared to the year-ago loss of $88.5 million and $81.4 million, respectively. Adjusted EBITDA was $4.8 million, up from a year-ago loss of $1.6 million.
Adjusted EBITDA at Conda was $7.3 million, down from $8.2 million, representing an 11 percent decrease primarily due to lower cash margins per mt of P205 due to higher input costs, which was partially offset by higher realized prices. Production was 145,665 mt, up 4 percent from year-ago levels primarily due to the timing of the MAP+ production and higher APP production.
Itafos reported a full-year net loss of $62.3 million on revenues of $260.2 million, compared to the 2019 loss of $144.2 million and revenues of $339.4 million, respectively. Adjusted EBITDA was $15 million, up from a minus $3.2 million.
Adjusted EBITDA at Conda was $34.3 million, a 2 percent decrease due to lower production resulting from the disruption in sulfuric acid supply and lower realized prices, partially offset by lower cash costs. Conda production was 516,480 mt, representing a 10 percent decrease from 2019.
Itafos gave adjusted EBITDA guidance for 2021, with first-half $43-$48 million, second-half $37-$42 million and full-year $80-90 million. The company gave full-year maintenance capital expenditures of $20-$25 million, with the bulk of that – $16-$20 million – expected in the first-half. 2021 growth capex was put at $8-$13 million.