A new sinkhole, measuring 25 x 32 meters large, has been reported at Uralkali’s Solikamsk-2 potash mine, according to Bloomberg, citing a company website statement. The company is reported to be assessing the situation and taking measures to minimize consequences. The company said it does not affect Solikamsk-2 or other mine operations.
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CF Reports 1Q Net Income
CF Industries Holdings Inc. reported first-quarter net earnings attributable to common stockholders of $63 million ($0.27 per diluted share) on revenues of $957 million compared to the year-ago loss of $23 million ($0.10 per share) and $1.04 billion, respectively. Revenues were down with the company citing lower volumes for most segments, partially offset by higher average selling prices across most segments.
“The CF team executed well in all aspects of our business during the first quarter, maximizing the opportunities available to us even as the spring application season was delayed due to cold and wet weather,” said Tony Will, CF president and CEO. “Despite lower volumes, we generated $101 million in cash and are well-positioned to meet the strong demand we expect through the second quarter.”
Tampa 2Q Sulfur Price Concluded
The Tampa second-quarter sulfur price has been concluded at $116/lt, a rollover from the first-quarter price.
Nutrien Cuts Production Citing Rail Delays
Nutrien Ltd., Saskatoon, has announced temporary layoffs of over 600 employees and the idling of production at its Allan and Vanscoy potash mines in Saskatchewan, according to Bloomberg, with the company citing a need to manage inventory amid rail shipment challenges.
“We don’t really think it’s going to impact our potash output for the year,” a spokesman said. He said the return to operations will depend on rail capacity. The company said rail delays have caused inventories to pile up and Nutrien is working with the railways to ship what it can. However, a spokesperson for Canadian National, which handles most of the rail deliveries from the two mines told the CBC that it is current with all deliveries at Nutrien and its orders. CN acknowledged delays in January but maintained that it was able to rebound in February and March and move all orders for Nutrien and Canpotex.
Tampa NH3 Moves Down
May ammonia pricing for Tampa was concluded at $255/mt CFR, down $20/mt from April’s $275/mt CFR.
LSB, CVR Report 1Q Losses
Nitrogen producers LSB Industries Inc., Oklahoma City, and CVR Partners LP, Sugar Land, Texas, both reported first-quarter losses.
LSB reported a first-quarter net loss of $5.6 million, compared to the year-ago loss of $6 million. However, the net loss attributable to common shareholders was actually up at $13.6 million ($0.49 per basic and diluted share) from the year-ago $13.2 million ($0.48 per share). Operating income was off at $1.9 million from the year-ago $2.32 million. However, adjusted EBITDA was up at $21.7 million from $18.3 million.
“We were pleased with our first quarter results, which were in line with our expectations and showed improvement over the prior year period, which benefitted from $1.7 million of adjusted EBITDA from a business that we divested later in 2017,” said Daniel Greenwell, LSB president and CEO. “The favorable year-over-year comparison reflects stronger pricing across most of our products along with solid operations by our facilities, particularly El Dorado, along with lower natural gas input costs.”
CVR had a first-quarter net loss of $19 million ($0.17 per common unit), on net sales of $80 million, compared to a year-ago net loss of $10 million ($0.09 per unit) on net sales of $85 million. Adjusted EBITDA was $13 million compared to the year-ago $21 million.
“Our Coffeyville fertilizer plant performed extremely well during the 2018 first quarter, posting on-stream rates of 100 percent for gasification, 99.8 percent for ammonia and 99.2 percent for UAN,” said Mark Pytosh, CVR CEO. “Operations at our East Dubuque plant were interrupted by 12 days of unplanned downtime related to a boiler feed water coil leak.
“While late snowfall and lingering winter temperatures delayed the start of the spring planting season, we continue to anticipate a strong application period with solid demand driven by lower than normal customer inventory levels and an estimated 88 million planted corn acres.”
Intrepid 1Q Back in Black
Intrepid Potash Inc. reported first-quarter net income of $1.76 million ($0.01 per diluted share) on sales of $53.2 million, up from the year-ago loss of $13.7 million ($0.17 per share) and $48.6 million, respectively.
“Solid operational execution, combined with the strategic moves we have made to strengthen our business, provided a solid start to 2018.” said Bob Jornayvaz, Intrepid executive chairman, president and CEO. “Our focus on by-products led to lower potash costs and an improvement in margin compared to the prior year. We have also seen healthy demand in the domestic Trio® market and expect that to continue in the second quarter. These factors, combined with a record quarter for our water business, yielded meaningful cash flow, improved our liquidity position, and marked what we believe is a transition for the business toward increased profitability and a more growth-focused strategy.”
Fire Destroys Helena Storage Unit
An April 18 fire at a Helena Agri-Enterprises facility in Orion, Ill., destroyed a storage unit, according to local authorities. The building was reportedly filled with pesticides and other ag chemicals. Foam, instead of water, was used to fight the blaze.
Damage appears to have been limited to the storage unit. The company did not immediately respond to inquiries.
Regulators to Reassess Yara, Vale Deal
Brazil antitrust regulator—Cade, has decided to take another look at Vale SA’s sale of fertilizer assets to Yara International ASA, according to a CNBC report citing Reuters. Earlier the agency had given the acquisition a green light.
Reportedly, Cade wants to take another look at the deal in light of the news that Petrobras is shutting down two plants in the country, with plans to sell two more.
BHP Strikes Potash at Jansen
BHP has struck potash for the first time as it sinks a pair of shafts at its Jansen project in Saskatchewan, the company told the Star-Phoenix. Crews reached potash at levels of 924 meters late last month. The company called it a “major milestone.”
To date, BHP has committed some $3.8 billion to the project. BHP, however, has not committed to completing the project, continuing to enhance project economics, study the market and look for a partner.