Jordan Phosphate Mines Co. (JPMC) on Feb. 11 signed a Memorandum of Understanding with the Government of Bangladesh to supply 270,000 mt of phosphate rock and phosphoric acid worth $280 million. Under the MOU, JPMC said it will supply Bangladesh Chemical Industries Corp. (BCIC) with 150,000 mt of phosphate rock and 120,000 mt of phosphoric acid. The tons will be delivered over three years.

An agreement, to be renewed on an annual basis for three years, will be signed between the two counties soon, to mark the start of the first shipment. The supplier will also look at the possibility of supplying DAP to Bangladesh.

JPMC’s CEO Shafiq al-Ashqar said the relationship between JPMC and BCIC extends back many years whereby the Jordanian company used to be the main supplier of phosphate to the Bangladesh market.

A Haifa Municipal Court has ordered Haifa Chemicals to empty the 12,000 mt ammonia storage facility within 10 days. This will have an impact on Haifa Chemicals and Israel Chemicals Ltd. However, it is still unclear if the company will be able to do so. In a related development there are reports that the Israeli government is discussing with the owners of Haifa about the setting up of a joint Israeli-Jordanian storage facility as a short term solution to the problem until a production plant is built.

Agrium Inc. announced today its 2016 fourth quarter results, with a net earnings to equity holders of Agrium of $67 million ($0.49 diluted earnings per share) compared to net earnings of $201 million ($1.45 per share) in the fourth quarter of 2015. The reduction in net earnings was driven primarily by lower year-over-year nutrient pricing.

On an annual basis, 2016 earnings were $592 million ($4.29 per share) compared to $988 million ($6.98 per share) in 2015.

“Agrium continued to deliver solid results across our business this quarter, supported by record fourth quarter results in our Retail business and strong wholesale operating performance,’ said President and CEO Chuck Magro. “We delivered on our promise of value-added growth in 2016 by successfully bringing our Borger expansion to completion and growing retail at a record pace through acquisitions. We have been encouraged by the recent firming in global nutrient markets and we anticipate solid demand for crop inputs in the coming spring application season.”

Yara International ASA reported fourth-quarter net income after non-controlling interests of negative NOK 333 million (NOK 1.22 per share), compared with a positive NOK 434 million (NOK 1.58 per share) a year earlier.

“Yara reports a weaker result than a year earlier, reflecting lower fertilizer prices as the global nitrogen price floor was tested during the quarter,” said President and CEO Svein Tore Holsether. “But our operational performance improved significantly, with fertilizer sales and production up 15 percent and 11 percent, respectively.”

Compass Minerals reported fourth-quarter net earnings, excluding special items, of $46.1 million ($1.35 per diluted share) on sales of $443.2 million, down from the year-ago $58.4 million ($1.72 per share) and $289.3 million, respectively.

Net earnings were $97.6 million, including approximately $51.5 million in a net after-tax benefit or $1.52 per share. This included a $59.3 million gain on the company’s equity investment in Produquimica, which was partially offset by a partial writedown of the Wolf Trax trade name.

The company called the results solid, saying they were driven by a resilient performance in the Salt segment, improved demand for potassium sulfate in North America and the addition of the Produquimica business in Brazil.

Plant Nutrition North America operating earnings were $8 million on sales of $62.6 million, down from the year-ago $11.5 million and $50.5 million, respectively. However, sales volumes were up at 95,000 st from the year-ago 62,000 st, while average prices were down at $657/st from $805/st.

Full-year net earnings, excluding special items, were $111.2 million ($3.27 per share) on sales of $1.14 billion, down from the year-ago $159.2 million ($4.69 per share) and $1.1 billion, respectively.

Full-year North American operating earnings were $21.1 million on sales of $203 million, down from the prior year’s $57.9 million and $238.4 million, respectively. Fertilizer volumes were up slightly at 313,000 st from 311,000 st, while average prices were down at $648/st from $765/st.

The ammonia pipeline to Yuzhnyy re-opened for business late last week. Sources said ammonia is pumping through at 5,000 mt/d.

The first ship lined up to receive product at the Black Sea port is the Clipper Mars. It will load about 40,000 mt Feb.10-15 for an Indian buyer.

Sources said larger buyers are now “convinced” prices will begin to fall now that Yuzhnyy is once again supplying product to the global market. Others, however, argue prices could remain steady. They cite problems with producers in the CIS and Arab Gulf, along with steady demand.

Some 87 workers at Potash Corp. of Saskatchewan Inc.’s Rocanville mine are safe after a mine fire that broke out Wednesday afternoon, Feb. 1. While emergency crews quickly put out the fire, the smoke forced the workers to take shelter in refuge stations. The workers came out in shifts starting at 11:30 p.m. with the last workers making it out this morning, Feb. 2, at 5:30 am. No injuries were reported and normal mining operations resumed later in the morning.

The company had no damage estimate or what caused the fire, which occurred in a small truck in the mine.

Genesis Grain & Fertilizer LP, Saskatoon, a Western Canadian farmer-owned agribusiness, has confirmed an initial investment into the first of seven anticipated fertilizer SuperCenters. The Stueve Construction design, in partnership with Genesis, will accommodate urea, phosphate, micro-nutrients, sulfur, and potash.

Once complete, the Genesis Belle Plaine SuperCenter will boast a 52,000 mt capacity storage and blending facility with the ability to turn three times annually. The company says this will be the largest direct-to-farm fertilizer distribution facility in Canada. Features will include: Ability to unload and load railcars; ability to load trucks directly from railcars; fully automated declining weight system; ability to process and bag micro-nutrient products; ability to impregnate fertilizer with the most advanced additives; automation so customers do not have to exit their trucks; six bay enclosure – four truck and two rail; in-floor heat to keep product dry; solid wood and concrete structure with barreled ends.

“Thinking beyond the investment, farmers recognize they needed to become a part of something special,” said Jason Mann, president of Genesis Operating GP. “A mechanism of incredible innovation and design, working to their benefit by providing a multi-dimensional return in the form of savings (lower fertilizer and related input costs), earnings (retail sales to customers) and equity (reaping the reward of ownership).”

Genesis is seeking strategic partners to invest alongside farmers and supply fertilizer to its SuperCenters. Strategic investors will gain access directly to a large group of Canadian farmers providing a risk-reducing crop input distribution channel.

AgraCity Crop & Nutrition and Farmers of North America are related companies and sponsors of Genesis.

Pinnacle Operating Corp., Loveland, Colo., said Jan. 31 that it has reached agreement with the majority of the holders of its first-lien term loan and second-priority notes on a financial recapitalization plan that will reduce Pinnacle’s overall debt, reduce cash interest costs, increase the company’s liquidity and strengthen its overall capital structure (Recapitalization). It says the recapitalization is expected to reduce Pinnacle’s consolidated debt by approximately $200 million, reduce Pinnacle’s annual debt service costs by over $5 million and result in a capital infusion of more than $125 million into Pinnacle Agriculture Enterprises LLC. The new capital investment will be provided by funds affiliated with Apollo Global Management LLC, certain existing creditors of Pinnacle, certain members of the Pinnacle management team, and other new investors.

In connection with the recapitalization, Pinnacle has entered into: (i) an amendment to the first-lien term loan with parties representing approximately 60 percent of the outstanding principal amount of its first-lien term loan, and (ii) a recapitalization support agreement with parties representing approximately 80 percent of the outstanding principal amount of the second-priority notes.

“We have been diligently working with our financial advisors over the past few months to develop a longer-term financial plan for Pinnacle, exploring various options to improve our balance sheet and enhance our overall financial flexibility. We are pleased that a substantial majority of our creditors have already committed their support,” said Kenny Cordell, Pinnacle president and CEO.  “We believe that the new capital investment, of over $125 million, demonstrates the confidence that our creditors and shareholders have in Pinnacle’s business plan and also positions Pinnacle to drive long-term value for all of the company’s key constituents, including its employees, customers and investors. Additionally, our management team is also investing new capital of approximately $1 million alongside the other investors.”

The recapitalization support agreement, subject to the terms and conditions set forth therein, provides for new investment commitments of more than $125 million, backstopped by investment funds affiliated with Apollo, certain existing creditors of Pinnacle, as well as certain members of the Pinnacle management team.  After the recapitalization, Apollo will remain the majority shareholder of Pinnacle.

Consents to the recapitalization, to be effectuated through an exchange offer, will be sought from holders of the second-priority notes pursuant to the terms and conditions that will be set forth in an offering memorandum, and consent solicitation. Extended first-lien term loans will bear an interest at a rate of LIBOR + 5.50 percent per annum payable in cash, plus 1.75 percent per annum payable in kind. The amendment (and the recapitalization) are conditioned upon, among other things, holders of no less than 90 percent of the aggregate principal amount of first-lien term loans agreeing to such amendment.

Under agreement, the closing of the transaction will be conditioned upon, among other things, 95 percent of the aggregate principal amount of Pinnacle’s second-priority notes being validly tendered and not withdrawn in the exchange offer. Additionally, in order to consummate the exchange, offer, Pinnacle will be seeking the maturity extension referenced above from its first-lien term loan lenders, which has already been agreed to by approximately 60 percent of the outstanding principal amount of the first-lien term loan, as well as a maturity extension from its asset based lenders.  As long as the agreement remains in effect, each of the parties to the agreement has agreed to use commercially reasonable efforts to support and complete the recapitalization.