Intrepid Potash Inc. reported a 15 percent decrease in potash sales volumes in the fourth quarter ending Dec. 31, 2011, although net income was up 37 percent. Net income was $24.9 million ($.33 per diluted share) on sales of $104.6 million, compared to the year-ago $18.2 million ($.24 per share) on sales of $96.1 million.
“Despite the demand deferral that we saw in the fourth quarter, our sales team was able to capitalize on the available opportunities because of our strong customer relationships,” said Bob Jornayvaz, Intrepid executive chairman of the board. “Our capital investment plans remain ambitious and we are confident, based on our track record, that we will continue to efficiently execute on these projects and thereby enhance our capacity to grow our production and to serve our customers. We firmly believe that, as spring moves closer, the farmer will not be asking if he should apply potash but how much to maximize his yield and take advantage of strong commodity prices and low grain inventories.”
Fourth-quarter potash gross sales were $94.7 million with volumes of 183,000 st and an average net realized sales price of $497/st, compared to the year-ago $88.6 million, 216,000 st, and $386/st, respectively. The average potash gross margin (exclusive of costs associated with abnormal production) was $230/st, up from $169/st.
Fourth-quarter Trio gross sales were $9.9 million with increased sales volumes of 28,000 st and an average price of $287/st, which compares to the year-ago $7.6 million, 27,000 st, and $222/st. Trio gross margins were $42/st, up from the year-ago $38/st.
Full-year net income more than doubled, to $109.4 million ($1.45 per share) on sales of $442.9 million, from 2010’s $45.3 million ($.60 per share) and $359.3 million, respectively.
Full-year potash gross sales were $392.3 million on volumes of 793,000 st with an average price of $472/st, compared to 2010’s $312.1 million, 810,000 st, and $363/st. Potash gross margins were $235/st, up from $129/st.
Full-year Trio gross sales were $50.6 million, with volumes of 173,000 st and average prices of $236/st. Comparable numbers for 2010 were $47.2 million, 204,000 st, and $174/st, respectively. The average gross margins for 2011 and 2010 were both $11/st.
Intrepid released preliminary figures for 2011 in January (GM Jan. 23, p. 1).