Phosphate producer Itafos Inc., Houston, reported record third-quarter net income of $15.7 million, up from a year-ago loss of $13.8 million. Revenues were $103.0 million, up from $47.6 million, while adjusted EBITDA rose to $41.2 million from a loss of $0.3 million.
The company noted that DAP NOLA prices averaged $624/st in Q3 2021 compared to $335/st in Q3 2020, up 86 percent year-over-year driven by strong agriculture and phosphate fertilizer market supply and demand dynamics. Similarly, DAP NOLA prices averaged $568/st the first nine months of 2021 compared to the year-ago $292/st, up 94 percent year-over-year.
“We delivered record operational and financial performance during Q3 2021, resulting in a year-to-date 2021 adjusted EBITDA at Conda of $107.7 million and $95.5 million on a consolidated basis,” Itafos CEO G. David Delaney said.
“We are raising our full-year guidance for 2021 to reflect the continued strength of the business and strong fundamentals in the agriculture and phosphate fertilizer markets. The positive market fundamental trends are expected to continue into 2022. In raising our full-year guidance for 2021, we have taken into account the expected negative impacts of the previously announced disruption in sulfuric acid supply to Conda from its primary supplier, which we expect to be resolved during Q4 2021.”
Full-year guidance was moved to $120-$130 million, up from $110-$120 million.
Itafos said factors driving the year-over-year improvement included no significant phosphate fertilizer supply capacity additions, which resulted in continued drawdown of global phosphate fertilizer inventory levels; strong phosphate fertilizer demand underpinned by global coarse grains and oilseeds at multi-year low stocks-to-use ratios and the highest prices in nearly a decade, supporting demand and fertilizer relative affordability; and CVD orders confirmed by the U.S. International Trade Commission on phosphate fertilizer imports to the U.S. from Morocco and Russia
Nine-month net income was $27.2 million on revenues of $296.5 million, up from the year-ago loss of $52.9 million and $185.1 million, respectively. Adjusted EBITDA was $95.5 million, up from $10.2 million.