Agrium Inc. announced on Nov. 5 that its subsidiary, Loveland Products Inc., has signed a definitive agreement to take an equity stake in CH Biotech R&D Co. Ltd., an agricultural technology company that develops and markets plant health and nutrition technologies.

Under terms of the agreement, Agrium will have the right to obtain exclusive, worldwide distribution rights to CH Biotech’s existing plant health technologies as well as access to new product and technology opportunities. It will also allow CH Biotech to further collaborate with Agrium to expand their plant health-focused research and development initiatives.

"This integrated strategic partnership and investment continues to build our offering of next-generation plant health technologies, allowing us to provide a diverse and highly complementary product portfolio to meet the changing needs of our grower customers around the world," said Brent Smith, Loveland Products vice president. "We are highly focused on integrating and advancing our business and products with proprietary technologies, as evidenced by this and several other strategic investments made earlier this year. The pace at which technology in the plant health sector is advancing is rapid and we will continue to seek out complementary and innovative relationships in an effort to bring the advantages these products offer to the market in the most efficient manner."

Agrium’s Loveland Products currently markets and distributes several CH Biotech technologies including the brands Radiate®, NutriSync®, and Consensus®, which are product technologies focused on improving root development, stress reduction, and nutrient utilization.

"We are excited to increase our research and development initiatives with Agrium through Loveland Products," said Chen Pang Wu, chairman and CEO of CH Biotech. "Our recently completed world class research and development center in Taiwan is dedicated to discovering and developing novel technologies that create significant value and an excellent return on investment for growers. This partnership will allow us to further expand and grow that portfolio around the world."

Agrium announced earlier this year that it had taken a controlling interest in Agricen, an agricultural technology company delivering biochemical-based solutions and products for plant nutrition (GM Sept. 1, p. 1). Agrium also recently announced a commercialization and technology development agreement for soil and plant health nutritional products with Actagro, a developer, manufacturer, and marketer of environmentally sustainable soil and plant health technology solutions (GM Sept. 29, p. 13).

Agrium Inc. announced today consolidated net earnings from continuing operations of $91-million ($0.63 diluted earnings per share) for the third quarter of 2014, compared with net earnings from continuing operations of $80-million in the third quarter of 2013 ($0.54 per share). Net earnings, however, were down to $50 million from the year-ago $76 million as the company reported a $41 million loss from discontinued operations.

“Agrium’s business once again proved resilient delivering solid results this quarter despite challenging agricultural market conditions. Near perfect growing conditions across the U.S., combined with low crop prices, reduced demand for some crop protection products. Wholesale achieved strong performance this quarter from our phosphate and nitrogen businesses; however results in the second half of this year have been impacted by major planned turnarounds at our Vanscoy potash and Redwater nitrogen facilities. These projects will complete essential work to further strengthen Agrium’s competitive position and deliver significant additional free cash flow in the coming years,” commented Chuck Magro, Agrium president and CEO

Agrium said the third-quarter results included pre-tax share-based payments expense and net losses on foreign exchange and derivative positions of $31-million ($0.17 per share) as well as a one-time recognition of a previously unrecognized tax benefit of $29-million ($0.20  per share). Excluding these items, net earnings from continuing operations would have been $87-million ($0.60 per share).
 
Agrium’s board of directors also announced its intention to increase Agrium’s dividend by four percent, or $0.12 U.S. per common share to a total dividend of $3.12 U.S. per common share on an annualized basis. Based on the closing price of Agrium’s shares on the NYSE on Friday, October 31, 2014, this represents a dividend yield of 3.2 percent. The increased dividend is expected to be paid in quarterly installments of $0.78 U.S. and the next $0.78 U.S. per common share dividend will be paid on January 21, 2015 to shareholders of record on December 31, 2014.
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“The further increase in our dividend is a demonstration of our confidence in our strategy, and our commitment to shareholder returns. We are confident of our ability to generate significant cash flow in the future and we maintain a positive long-term outlook for the agriculture industry,” added Agrium’s President and CEO, Chuck Magro.

Agrium is providing guidance for the fourth quarter of 2014 of $0.45 to $0.75 diluted earnings per share from continuing operations. This excludes net gains or losses on foreign exchange and derivative positions and share-based payments expenses or recoveries.

Israel Chemicals Inc.’s workers began imposing sanctions on Sunday, Nov. 2, disrupting all shipments out of the company’s plants in southern Israel, including potash and phosphates. The workers are also preventing raw materials from entering production facilities. The sanctions are expected to impact exports if they continue in the coming days.

The workers committee head at the company’s Bromine Compounds subsidiary Avner Ben-Senior said the sanctions were in response to management’s plan to implement a recovery plan that includes cutbacks in the work force and the shutdown of the magnesium plant in Sdom. Ben-Senior said the disruptions at the company’s plants would continue until further notice.

The sanctions come just two weeks after a government appointed committee recommended imposing a graduated windfall profits tax on natural resources. In its final report the committee recommended a windfall profit tax or surtax of between 25 to 42 percent depending on the level of profitability. The tax would be imposed from 2017 and the level would depend on the return on equity.

In response to the sanctions, ICL management said that following the decisions by the government appointed committee the board of directors decided to cancel all investment in Israel and introduce a plan for streamlining its operations including the cutting back of workers and the shutdown of the magnesium plant.

ICL has also decided to focus on its core businesses in the agriculture, food and engineered materials markets. Last week the company announced that it had signed an agreement to sell parts of its ICL Performance Productions division to Japan’s Kurita Water Industries Ltd.

CF Industries Holdings Inc. said Oct. 29 that its entire Woodward, Okla. nitrogen complex is off-line due to a problem in one of the boilers. CF said all of the plants in the complex were safely shut down with no impact on personnel, the surrounding community or the environment.
 
CF estimates it will take approximately 6 weeks to return the plant to normal operations. The Woodward complex has average annual production capacity for 480,000 st of gross ammonia, 820,000 st of UAN, and 25,000 st of urea liquor. CF’s sales organization is communicating with customers to work through product availability and delivery schedule implications.

The Mosaic Co. reported third quarter 2014 net earnings of $202 million, up from $124 million a year ago. Earnings per diluted share were $0.54 in the quarter compared to $0.29 last year. Notable items negatively impacted third quarter 2014 net earnings by $11 million, or $0.02 per share. Third quarter 2013 notable items negatively impacted prior year net earnings by $95 million, or $0.22 per share. Mosaic’s net sales in the third quarter of 2014 were $2.3 billion, up from $1.9 billion last year. Gross margin during the quarter was $415 million, up from $387 million a year ago, driven by higher phosphate and potash sales volumes. Operating earnings during the quarter were $277 million, up from $144 million a year ago.

"Mosaic delivered improved year-over-year performance despite weakness in the broader agricultural sector," said Jim Prokopanko, president and CEO. "The improving demand momentum for both potash and phosphates that started in the fourth quarter of 2013 continued. We are on pace to deliver more tons this year than in any of the last five years, and close to the records of 2008."

Rentech Nitrogen Partners LP on Oct. 30 announced that it has signed a long-term agreement with Tessenderlo Kerley Inc. (TKI), the North American subsidiary of Brussels-based Tessenderlo Group, to supply TKI with ammonia produced from its East Dubuque, Illinois facility.

The ammonia will be used by TKI to produce TKI liquid fertilizer Thio-Sul®. TKI will lease property from Rentech Nitrogen adjacent to the East Dubuque fertilizer facility to build a new plant to manufacture the TKI liquid fertilizer Thio-Sul®.

TKI will own, construct, and operate the new production plant. Construction is expected to begin immediately upon receiving approval of necessary permits. When completed, the new plant will enhance TKI’s position as the world’s largest producer of sulfur-based liquid fertilizers.

The Tampa anhydrous ammonia price for November has been concluded at $655/mt DEL, up $15/mt from October’s $640/mt.

The Trading Corp. of Pakistan called four urea tenders for a total of 415,000 mt. The tenders are set to close, Nov. 10, 11, 12 and 13. The first three tenders are for 105,000 mt each. The last tender is for 100,000 mt.
  
The government had earlier authorized import of 300,000 mt. At the time, sources agreed the country needed at least that much urea to close out the current application season. Many in the industry, however, wondered where cash-strapped Pakistan would get the funds for a public tender.

The announcements of the tenders came as the industry is meeting in Singapore at the IFA Asian regional conference.

The TCP tenders are expected to offer a boost to a prilled urea market that gained strength from the STC/India tender that closed Oct. 29.