Intrepid Potash Inc. reported net income of $22.7 million ($.30 per diluted share) on sales of $79.5 million for the fourth quarter ending Dec. 31, 2008, up from the year-ago pro forma $4.7 million ($.06 per share) and $56.3 million, respectively. The average potash price for the quarter was $762/st, versus the year-ago $224/st FOB. Sales volumes were off significantly, to 94,000 st from the year-ago 215,000 st. Production was 201,000 st, down from the year-ago 217,000 st.
The average fourth-quarter langbeinite price was $323/st, up from $137/st. Sales dropped to 17,000 st from the year-ago 27,000 st, while production was also down at 34,000 st from 51,000 st.
Pro forma income for the year 2008 was $124.1 million ($1.65 per share) on sales of $415.3 million, versus the year-ago $17.6 million ($.24 per share) and $213.4 million. The average potash price for the year was $486/st versus the year-ago $194/st. Potash sales for the year were down to 724,000 st from 2007’s 893,000 st, while production was 836,000 st from 877,000 st.
The average 2008 langbeinite price was $192/st, up from $119/st. Sales were up in 2008, to 207,000 st from 2007’s 158,000 st. Production was up at 197,000 st from 177,000 st.
Despite the economic downturn, Intrepid believes in potash long-term fundamentals and says it important to continue to invest in capital projects that add sustainability and improve overall operating efficiency. As a result, it expects to spend $100-$140 million on capital projects in 2009, up from 2008’s $94 million.