Phosphate producer Itafos Inc., Houston, reported record 2021 results and robust fourth-quarter earnings as it expects continued strength in 2022 – citing low global inventory levels, no significant additions of supply capacity, stable phosphate fertilizer demand, reduced supply from Russia, global disruption of supply chains of raw materials following Russia’s invasion of Ukraine, and China’s decision to severely restrict phosphate fertilizer exports through at least June 2022.
“We made great progress in reshaping the fundamentals of our company during 2021, which resulted in record operational and financial performance, including full-year revenues of $413.2 million, adjusted EBITDA of $143.4 million, and world class safety metrics,” Itafos CEO G. David Delaney said.
Full-year net income was $51.4 million on revenues of $413.2 million, up from 2020’s loss of $62.3 million and $260.2 million, respectively. Adjusted EBITDA was $143.4 million, up from $15 million. The company said Itafos Conda produced 536,603 mt during the year, up from 2020’s 516,480 mt.
DAP NOLA prices averaged $715/st in fourth quarter 2021 compared to the year-ago $368/st, up 94 percent year-over-year, driven by strong agriculture and phosphate fertilizer market supply and demand dynamics. Similarly, DAP NOLA prices averaged $602/st in FY21 compared to $312/st in FY20, up 93 percent year-over-year.
Itafos’ fourth-quarter highlights included revenues of $116.8 million compared to the year-ago $75.1 million; adjusted EBITDA of $47.9 million compared to $4.8 million; and net income of $24.3 million compared to a $9.4 million loss.
Delaney noted the company is looking to continue to build upon further improved financial and operational performance in 2022, aided by rising prices and solid volume demand in its markets. Its guidance for this fiscal year expects adjusted EBITDA of $190-$230 million, net income of $65-$95 million, basic earnings of C$0.44-$0.65/share, maintenance capex of $13-$23 million, growth capex of $12-$22 million, and free cash flow of $135-$165 million.
“Our full-year guidance for 2022 reflects the continued strength of the business and our expectations of increasingly strong fundamentals in the agriculture and phosphate fertilizer markets,” said Delaney.
In 2022, Itafos said it will continue to focus on deleveraging its balance sheet with cash flows from the business, extending Conda’s mine life through permitting and development of its H1/NDR mining operation, and evaluating strategic alternatives for its non-North American assets.