Agrium Inc. reported 2015 first quarter net earnings of $14 million ($0.08 diluted earnings per share) compared to the year-ago $3 million ($0.02 per share). The higher earnings were supported by strong margins and operating rates for nitrogen products in Wholesale segment, while some first quarter Retail earnings were pushed into the second quarter as a result of the delayed start to the spring season in the U.S. this year. Sales were $2.87 billion, down from $3.08 billion.

In the Wholesale segment, strong nitrogen performance contributed to Wholesale gross profit of $234 million compared to the year-ago $171 million.

Retail gross profit was $371 million down from the year-ago $387-million and was impacted by slow start to U.S. spring season, shifting earnings into the second quarter.

Agrium announced a 12 percent increase to its dividend, now $3.50 per share on an annualized basis.

Agrium first half guidance is $4.75 to $5.25 diluted earnings per share, though the company updated annual guidance to a more narrow range of $7.00 to $8.25 diluted earnings per share from the previous $7.00-$8.50 per share.

BASF Corp. reported on May 6 that it has entered into a distribution agreement with Kinetix Solutions LLC, Baton Rouge, La., for the sale of BASF’s gas treatment solvents to the ammonia and syngas industry in the U.S. and Trinidad & Tobago.

"As a leading supplier to the ammonia and fertilizer industry, Kinetix is well positioned to offer the technical expertise, high level of service, and reliable network of industry professionals needed by customers," said Eduardo Padilla, BASF’s director, corporate distribution. "These attributes made them a good choice when we considered a new distributor for BASF’s gas treatment offerings to meet the needs of customers and prospects in the ammonia and syngas industry."

Under the agreement, Kinetix will distribute and provide services for BASF’s PuratreatTM and OASE® family of gas treatment products. BASF said its OASE brand offers state-of-the-art amine based gas treatment technology for gases containing hydrogen and/or carbon dioxide for ammonia and syngas applications. The company’s gas treatment solutions are used globally in some 350 plants, BASF said.

"BASF is an industry leader in process applications and technological development of gas treating solutions in the ammonia and syngas industry," said Jason Danos, Kinetix manager. "We are excited about the opportunity to work with BASF, and we believe that Kinetix’s technical service will continue to promote BASF’s products and services, as well as provide additional resources to its customers."

Kinetix is a privately-owned specialty chemical supply company with satellite offices throughout the U.S. Kinetix offers plant process products, services, and consulting to the industrial chemical sector, and also specializes in nitrogen/ammonia process and water technology, urea ammonium nitrate (UAN) corrosions inhibitors, and the design and development of CO2 removal systems.

You can still put in your bid for the assets of Mississippi Phosphates Corp. The company has again pushed back the date for the submission of bids in its Chapter 11 case before the U.S. District Bankruptcy Court for the Southern District of Mississippi. Bids are to be received no later than noon (CST), Monday, May 18. Bids had been due in today, May 5 (GM March 23, p. 11).

If there is more than one qualified bidder, an auction will be held May 20 at 9:15 a.m. in the offices of Butler Snow LLP in Ridgeland, Miss.

Uralkali has announced that Uralkali Trading SA (a wholly-owned subsidiary of Uralkali) has concluded a contract with Indian Potash Ltd. (IPL), the major Indian fertilizer importer, for potash deliveries between May 2015 and March 2016.
The contract delivery price for potash fertilizer has been set at an increase of US$10/mt on a CFR basis to the last year’s contract price of $322/mt CFR. Uralkali’s volumes under the contract will total 800,000 mt of KCl, including optional deliveries.

 “This agreement represents a compromise, reflecting the current situation on the global potash market,” said Dmitry Osipov, Uralkali CEO. “The contract will undoubtedly become one of the major drivers for industry development, stimulating potash demand.”

Saudi Arabia Fertilizers announced a further delay in the opening of the SAFCO V facility.

The plant was to have begun production in the second half of 2014. Mechanical and technical issues with the facility caused the company to announce opening would occur in the first quarter of 2015. Additional issues pushed back test runs in the plant until just a month ago.

SAFCO announced today further technical issues will push back the full opening of the plant until the end of June.

Once up and running, the plant will be expected to turn out 1.1 million mt of granular urea.

Potash Corp. of Saskatchewan Inc. reported first quarter net income of $370 million ($0.44 per diluted share) on sales of $1.66 billion, up from the year-ago $340 million ($0.40 per share) and $1.68 billion.

The Mosaic Co. reported first quarter net earnings of $294.8 million ($0.80 per diluted share) on sales of $2.1 billion, compared to the year-ago $217.5 million ($0.54 per share) and $1.99 billion, respectively.

The Trading Corp. of Pakistan called a second tender for 50,000 mt to close June 1. Shipment must be concluded within two weeks of the opening of the letter of credit.

The government authorized TCP to import 300,000 mt by July. Rather than call one tender for the full amount, TCP is repeating a previously successful strategy of calling multiple back-to-back tenders for smaller amounts.

The rules of the TCP tender process do not allow the buyer to negotiate with the second or third lowest offering firms. The company must also give a one-month notice, unless the government grants a special exemption.

Sources said TCP might be able to negotiate with the lowest offering company to increase the tonnage it supplies. If the buyer does try that, said one trader, there may only be three back-to-back tenders. Another trader countered that if TCP relies on that strategy, it runs the risk of falling short of its purchase goal.

The buyer also runs the risk of chasing a rising market, with each tender closing at ever-higher prices, especially if IPL takes a large order in its tender that closes May 9.

Two major players in the fertilizer world called urea tenders today.
      Indian Potash Ltd. called a tender for an undetermined amount to close May 9. The Trading Corp. of Pakistan called a tender for 50,000 mt to close May 29.
      The two tenders come as Chinese and Arab urea producers are calling for higher prices to stop the slide in prices that has taken place in the past several months.
      Of the two tenders, industry watchers will be paying close attention to IPL.
      The Indian buyer will have to make a large purchase to make up for the smaller quantity taken by STC in its recent tender.
      The STC awards of about 500,000 mt are facing even greater problems. Of that amount, 180,000 mt were to come from MTPL with Chinese product. The refusal of Chinese producers to accept the $266/mt CFR price now puts the delivery of those tons in jeopardy.
      The remaining tons are all expected to come from Iran.
      Trading houses will be looking at the payment rules in the IPL tender documents closely. Industry sources said the low participation rate in the STC tender was a direct result of STC saying it would not make payment until the Department of Fertilizers inspected the product and authorized release of the funds. Traders complained this broke with years of using letters of credit for payment.
      Offers in the IPL tender must remain valid until May 16 with shipment by June 29.
      India’s neighbor, Pakistan, stepped in with a smaller tender, but one that is expected to be repeated.
      The TCP tender closes May 29 with delivery no later than June 23. Offer validity is for only 24 hours, leading to speculation that more tenders will be called in the next few days.
      The Pakistan government authorized the importation of 310,000 mt late last month. This tender may represent the first in a rapid series of tenders to reach that amount.
      The rules governing TCP tenders do not allow the buyer to negotiate with the second or third lowest offering companies, as Indian buyers are allowed. The buyer can only take the offered tonnage from the lowest qualified offer. If that offer does not fulfill the needs of the tender, TCP is forced to call another tender for the balance.
      This created a situation where a number of tenders had to be called in rapid succession because few companies were willing to offer 300,000 mt in one shot.
      Also under TCP rules – unless the government issues a special exemption – the time between calling the tender and its closing is 30 days. When TCP was forced to call follow-up tenders, it either had to ask for an exemption to reduce the time from announcement to closing or stretch out the purchasing schedule for months.
      Recently, however, TCP has taken to calling tenders for smaller amounts of 50-60,000 mt one day after another. For example, the current tender closes May 29. If TCP follows its recent patterns, another tender will be called April 30 with a closing of May 30, April 31 to close June 1 and so on until the full 310,000 mt is covered.
      One saving note for the Pakistani treasury is that unlike past tenders, the basic tender documents do not exclude Iranian material. Shipping for Iranian product is easier than for any other source and the material is often sold at a discount because of the complications of the embargo on Iran.