All posts by mickeybarb@charter.net

The Andersons Buys Pet Food Ingredient Company

Eastern Cornbelt, News, News Briefs

The Andersons Inc. announced on Nov. 1 that it has purchased Bridge Agri Partners Inc., Lethbridge, Alta., which specializes in providing ingredients to the pet food industry.

“We are excited to expand our pet food ingredient portfolio and our physical presence in the central northern region of the US and Canada,” said Bill Krueger, President, The Andersons Trade and Processing. “As a trusted partner in the pet food ingredient industry for many years, we are eager to offer greater options to our customers.”

The company said the acquisition further supports its strategy to expand in its core grain and fertilizer businesses, including premium products focused on food and feed, and its vision to become the most nimble and innovative North American ag supply chain company.

Bridge Agri Partners will continue to work under the Bridge Agri Partners name as a wholly owned subsidiary of The Andersons.

Chinese Utility to Build Record Green NH3 Plant

China, Green Ammonia, News, News Briefs

State Power Investment Corp. (SPIC), one of China’s largest electric utilities, is building a 6.33 billion-yuan ($880 million) green ammonia project in Jilin province. With an annual capacity of 180,000 mt, this would be the world’s largest green ammonia plant if commissioned by 2024 as planned, according to BloombergNEF.

The project scope includes renewable power generation, electrolysis to produce green hydrogen (H2), H2 storage, nitrogen production, and NH3 synthesis. The project’s power solution involves oversized renewable electricity plants and batteries, minimizing the need for grid power by the electrolysis facility that is designed to run at an 88% annual utilization rate.

Part of the wind power plant is connected to the grid, which would take otherwise curtailed electricity. Of the total 230 megawatts (MW) of electrolyzers, 50MW would be the costlier proton exchange membrane type, which SPIC will make.

Extended Turnaround Weighs on AdvanSix

Ammonium Sulfate, Earnings, News, Northeast

AdvanSix third-quarter net income was down at $10 million from the year-ago $43.9 million, with the company citing an extended turnaround that impacted production and sales volumes (GM Oct. 7, p. 26). Adjusted EBITDA dropped to $33.3 million from $77.7 million.

Sales were up 7% to $478.8 million from $446.5 million, driven by an 18% favorable impact of market-based pricing, 4% higher raw material pass-through pricing, and a 3% contribution from acquisitions, partially offset by 18% lower volumes. Ammonium sulfate made up 28% of third-quarter sales ($131.7 million) versus 26% ($113.2 million) during the year-ago quarter.

“Our third-quarter performance reflects the resilience of our business model and our ability to navigate challenging conditions,” said Erin Kane, AdvanSix President and CEO. “Despite the unfavorable impact of the extended plant turnaround as previously announced on Oct. 7, sales grew year-over-year as our commercial execution offset lower sales volume.

“Our healthy cash flow performance continued to support smart and disciplined deployment of capital in the quarter into reinvestment in the business, $17 million of cash returned to shareholders in the form of dividends and share repurchases, and further debt reduction,” Kane said.

In addition to the turnaround, the company also cited lower sales volume, inflation, and higher utilities cost driven by natural gas prices, partially offset by higher market-based pricing, net of increased raw materials costs.

“Our outlook is supported by our diverse product portfolio, advantage of our business model, and strong underlying agriculture and fertilizer industry fundamentals,” added Kane. “The growth prospects of AdvanSix remain robust, and we are committed to delivering long-term value to our shareholders. We’ve demonstrated our ability to successfully perform through all market conditions and expand our earnings base while generating robust cash flow and look forward to closing out 2022 with another strong quarter.”

The company expects the pretax impact of planned plant turnarounds to be $28-$33 million in 2023, versus approximately $50 million in 2022.

Nine-month net income was $138.3 million on sales of $1.54 billion, up from the year-ago $116.2 million and $1.26 billion, respectively. Adjusted EBITDA was up at $241.9 million from the year-ago $215 million.

Fertiglobe Posts 84% Rise in 3Q Net Profit

ADNOC - Abu Dhabi, Ammonia, Earnings, News, Northwestern Europe, Urea

Fertiglobe, the nitrogen fertilizer joint venture of OCI NV and Abu Dhabi National Oil Co. (ADNOC), reported an 84% jump in adjusted net profit attributable to shareholders of the company to $291.5 million in the third quarter ended Sept. 30, 2022, on a 52% year-over-year increase in revenues to $1.32 billion. This compares with the year-ago $158.2 million and $866.7 million, respectively.

Adjusted EBITDA increased by 64% to $606.3 million, up from $370.7 million.

Fertiglobe cited “the step-up” in urea and ammonia prices compared to the same period last year, supported, it said, by tight market balances, outweighing the typical seasonal slowdown in the third quarter.

For the nine months, Fertiglobe posted a 203% jump in adjusted net profit attributable to shareholders of the company to $1.09 billion, up from the prior-year $360.3 million.

Nine-month adjusted EBITDA increased by 122% to $2.0 billion, up from $902.9 million, while revenues were 87% higher at $3.97 billion, compared with the year-ago $2.13 billion.

Third-quarter own-produced sales volumes were down 2%, to 1.364 million mt from 1.396 million mt in the same prior-year period. Ammonia own-produced sales volumes increased by 4% to 322,000 mt versus the year-ago 310,000 mt, but this was offset by a 4% fall in urea own-produced sales volumes, which fell to 1.042 million mt from 1.086 million mt.

Traded third party volumes were up 11% year-over-year to 336,000 mt in the third quarter, up from the year-ago 302,000 mt.

Total own-produced and traded third party volumes were relatively unchanged in the third quarter under review, at 1.7 million mt.

For the nine-months, Fertiglobe’s total own-produced sales volumes were down by 4% to 4.158 million mt compared with 4.338 million mt in the same period in 2021. Nine-month third party volumes were up 3% year-over-year at 848,000 mt from 824,000 mt.

“Looking ahead, our order book in Bangladesh, Australia, and Europe is robust as demand picks up ahead of spring application in key import markets, giving us good visibility for the fourth quarter and the upcoming season in the first half of 2023,” said Fertiglobe CEO Ahmed El-Hoshy.

Management is guiding for a second-half dividend at a minimum of $700 million. This will bring the total for the full year 2022 to a minimum of $1.45 billion, including the $750 million first-half 2022 dividend paid to shareholders last month.

Fertiglobe product sales volumes (‘000 mt)

  3Q-2022 3Q-2021 % change 9M-2022 9M-2021 % change
Own Product            
Ammonia 322 310 +4 902 1,044 (14)
Urea 1,042 1,086 (4) 3,256 3,295 (1)
Total own product sold 1,364 1,396 (2) 4,158 4,338 (4)
Third-party traded            
Ammonia 134 40 +234 213 104 +105
Urea 202 262 (23) 635 720 (12)
Total traded third-party product 336 302 +11 848 824 +3
Total own product and traded third-party 1,700 1,698 +0 5,006 5,163 (3)

Meristem Crop Performance Group LLC – Management Brief

Eastern Cornbelt, Management Briefs, News, Specialty

Meristem Crop Performance Group LLC, Columbus, Ohio, announced on Nov. 3 that Cameron Edwards and Mason Troendle have joined the company as sales representatives, with Edwards serving farm businesses in Ohio and Troendle covering Iowa.

Edwards has nearly five years of experience in sales and business development with Ag-Pro Company, a John Deere dealer with 80 locations, and Direct Enterprises Inc., a provider of customized seed treatments and seed treating equipment.

Troendle worked for nearly five years with Stalcup, a farm management business serving northwest Iowa, and has been an auctioneer and licensed farmland broker in Iowa and Minnesota. He most recently worked with Tillable, a start-up oriented toward bringing together farmland owners and farmers to operate their land.

Meristem also announced that Wade Rethmel will represent Meristem and Stoutsville Seed Shed, Stoutsville, Ohio, as a sales agronomist in south-central Ohio. Stoutsville carries Meristem’s product portfolio, including seed treatments, plant growth regulators, water conditioners and surfactants, starter fertilizers, biologicals, nitrogen stabilizers, micronutrients, and foliar nutritionals.

Indorama Completes Acquisition of Brazil’s Adfert

Brazil, News, News Briefs, Specialty, Thailand

Indorama Corp. Pte Ltd. announced on Nov. 1 that its subsidiary, Indorama Holdings Brasil Ltda. (IHBL), has competed the acquisition of Adfert Aditivos Industria e Comercio Ltd., and its affiliates. All conditions precedents have been fulfilled and customary regulatory approvals have been received.

Indorama said Adfert, founded in 2009 and based in Uberlândia, Minas Gerais, is a pioneer and one of the largest manufacturers of special fertilizer additives and crop nutrition solutions in the Brazilian market. It said Adfert has a portfolio of high technology and patent protected products for supply to fertilizer producers and agri distributors.

IHBL, through its wholly owned subsidiary, Adufértil Fertilizantes Ltda. (ADF), operates one of the top six granular NPK distributors in Brazil, based in Jundiaí, Sao Paulo. IHBL concluded the acquisition of ADF in September 2021, which marked the entry of Indorama into Brazil’s agricultural market.

Anuvia Partners with PETRONAS Chemicals

News, News Briefs, Specialty

Anuvia Plant Nutrients has announced an agreement with PETRONAS Chemicals Group Berhad (PCG) to market and produce Anuvia’s bio-based fertilizer technology in the Asia Pacific region. Anuvia said the partnership opens its technology to one of the world’s largest agricultural markets and will significantly aid oil and gas giant PETRONAS in advancing to reach its net zero goal by 2050.

Citing an environmental audit conducted by Environmental Resources Management (ERM), Anuvia said its impact is substantial: for every million acres of crops that use Anuvia’s products, the reduction of greenhouse gases is the equivalent of removing up to 30,000 cars from the roads in perpetuity.

“This agreement is a good example of how the Anuvia technology can be used to improve nutrient management around the world,” said Amy Yoder, Anuvia CEO. “Working with PETRONAS, we can make immediate, significant impacts on food security and soil health, all while decreasing the environmental footprint of agriculture.”

Cooperative Ventures Announces First Investment in Ag Startup

News, News Briefs

Cooperative Ventures, a venture capital fund formed in late 2021 by CHS Inc. and GROWMARK, on Nov. 4 announced its first investment in Sabanto, a hardware and software company that develops autonomous capabilities in tractors. Sabanto, founded in 2018, is deploying fully-autonomous machinery performing row crop field operations throughout the US.

“We’re very enthusiastic about the strategic benefits presented by the Sabanto investment,” said GROWMARK Director of Innovation Heather Thompson. “The labor shortage in ag retail is a very real problem. Autonomy presents an exciting solution, but adopting autonomous equipment creates a new set of challenges for traditional operations. By partnering with Sabanto, GROWMARK and our FS cooperatives have the advanced opportunity to test and learn the impacts of this cutting-edge technology.”

Sabanto is currently focused on retrofitting 60 to 200 horsepower tractors to operate autonomously. Cooperative Ventures said Sabanto has proven its ability to automate a variety of row crop field operations, including planting, tillage, spraying, and mowing over thousands of acres throughout the Midwest.

“While many autonomous equipment startups are focused on specialty crops, we believe Sabanto’s focus on row crops presents a tremendous opportunity for farmers and our member owners,” said CHS Director of Innovation and Sustainability Ben Van Straten. “This truly is an evolution of agriculture, with the potential to lower equipment and labor costs for farmers and ag retailers by using smaller tractors that are more fuel efficient while further improving sustainability through less soil compaction.”

Ma’aden Reports 65% Jump in 3Q Net Profit on Sales Boost

Earnings, News, Saudi Arabia

Saudi Arabian Mining Co. (Ma’aden), Riyadh, posted a 65% increase in net profit after zakat and tax to SAR2.10 billion (approximately $559.2 million at current exchange rates) for the third quarter ended Sept. 30, 2022, up from SAR1.27 billion a year-ago, the company reported in a Nov. 1 filing to the Saudi bourse.

The net profit figure missed analysts’ estimates, which averaged SAR2.84 million (BloombergConsensus).

Sales revenue for the quarter increased by 50% to SAR10.01 billion, up from SAR6.7 billion the previous year. The company cited higher production volumes, which were partially offset by lower commodity prices, as boosting sales revenue.

But sales revenue missed analysts’ estimates, with the average estimate at SAR10.3 billion (BloombergConsensus).

Ma’aden’s shares dropped 9.92% to SAR75.40 per share on Nov. 1 on the missed profit and sales estimates.

For the nine months to Sept. 30, Ma’aden, net profit after zakat and tax nearly tripled to SR8.30 billion, up from SAR3.14 billion in the same year-ago period.

This was coupled with a 69% jump in sales revenue to SAR30.80 billion. compared to SAR18.25 billion the previous year.

Ma’aden attributed what it described as “a robust performance” to higher average sales prices of all products in addition to a rise in sales of ammonia, ammonia phosphate fertilizer, aluminium, and industrial mineral products.

A higher share in profit from joint ventures, and higher income from time deposits also contributed to the results, the company added

“…Our focus is to delivery long-term growth and we remain on track for a record year, underpinned by the company’s strong cash generation, diversified operations, and global customer base,” said Ma’aden CEO Robert Wilt.

“This has mitigated the impact of external pressures in the third quarter from lower commodity prices and higher input material costs, which have already started to normalize in the fourth quarter,” he continued.

Ma’aden said it ended trial production and officially commenced commercial production in August at its new 1.1 million mt/y Ammonia 3 plant at Ras Al-Khair Industrial City on Saudi Arabia’s East Coast. The company said in June the first shipments from the new plant had been made from the new berth (GM June 10, p. 24).

It also said in June it expected nameplate capacity at Ammonia 3 to be achieved by the end of this year.

Ammonia 3 is the first plant in Ma’aden’s ambitious Phosphate 3 project, which when built, is targeting an additional 3 million mt/y of phosphate fertilizer capacity.

Also in August, Ma’aden signed four Memoranda of Understanding (MOU) with three Indian fertilizer companies, aimed at doubling the Saudi company’s exports of phosphate products and ammonia to India starting in 2023, with plans to explore product and technology development collaboration for phosphate fertilizers (GM Aug. 26, p. 1).

The MOUs includes an agreement with Indian Potash Co. to supply phosphate products; an agreement to supply ammonia with Gujurat State Fertilizers & Chemicals Ltd.; and two agreements with Krishak Bharati Cooperative Co. Ltd. (KRIBHCO) and Coromandel International Ltd.

OCI , Fertiglobe to Produce DEF for Europe

ADNOC - Abu Dhabi, DEF, News, News Briefs, The Netherlands

OCI NV, Amsterdam, said on Nov. 3 it is expanding its product offering in Europe and intends to start production of Diesel Exhaust Fuel (DEF) under the AdBlue brand at its nitrogen facilities in the Netherlands in the first quarter of 2024.

Fertiglobe, the nitrogen fertilizer joint venture of OCI NV and Abu Dhabi National Oil Co. (ADNOC), also is to begin the production of DEF at its Egyptian Fertilizer Co. (EFC) In Egypt, with production starting in the fourth quarter of 2022.

OCI said it started to market DEF in Europe in October “given the tight market fundamentals [in the region]” and initially will utilize the trial shipments from the Fertiglobe facilities in Egypt.

Fertiglobe said it plans a trial shipment of DEF from EFC to Europe in the current quarter, adding more DEF shipments from EFC will follow as production ramps up.

Fertiglobe has the capacity to produce 0.5 million mt of DEF at its plants in Egypt and the UAE, with Abu Dhabi-based Fertil currently producing a small amount of DEF to serve local demand. Both facilities are able to quickly ramp up production, the company said.

DEF – also known as AdBlue in Europe – is a urea solution used to reduce environmentally harmful vehicle exhaust NOx emissions from diesel engines.