Western U.S.:
The 16-20-0 market in the Western U.S. firmed another $25/st on March 11, with new postings in California reported at $712/st FOB Richvale and $705/st FOB Lathrop. New pricing in the Pacific Northwest was quoted at $675/st FOB and $695/st DEL.
Bluestar Adisseo Nanjing and Trammo have announced the signing of an exclusive 10-year agreement for the supply of anhydrous ammonia through a dedicated ammonia pipeline to both of Adisseo’s liquid methionine plants located in Nanjing.
The parties said the 20 km pipeline, which will be the longest ammonia pipeline in China, is under final stages of construction and is expected to enter commissioning phase in April of this year.
It will be operated by Oiltanking Nanjing and will connect the existing 50,000 m3 ammonia tank, the largest in China, owned and operated by Oiltanking under a long-term exclusive lease to Trammo, to the methionine facilities of Adisseo, located in the Nanjing Chemical Industrial Park.
The parties – Adisseo, a global leader in animal nutrition, and Trammo, the largest global ammonia trader – said they have found their synergy in using existing and new infrastructure in the effort to create a safe and sustainable operational environment for the entire Nanjing Chemical Park, for decades to come. They said use of the pipeline will reduce the carbon footprint and ensure safe and secure handling and delivery of ammonia within Nanjing Chemical Park.
Adisseo, which is listed on the Shanghai Stock Exchange, has 10 research centers and production sites based in China, the U.S., Europe, and Thailand, which supply feed additives to customers in over 110 countries.
Trammo, which dates its presence in China back to 1983, is an international merchandising and trading company that markets, trades, transports, and distributes raw materials used in industrial processes and fertilizer production globally. It trades anhydrous ammonia, sulfur, sulfuric acid, and other products. The company also produces and markets nitric acid in the U.S.
Oiltanking Nanjing Co. Ltd. is a joint venture between Oiltanking, NCIP Administration, and the Port Authority of Nanjing. The company owns and operates a multi-user tank terminal for bulk liquids in Nanjing and serves a wide range of customers.
Pursell Agri-Tech, Sylacauga, Ala., on March 8 announced the addition of Bill Abetz, a 30-year veteran of the “green” industry, to the team. He will be Director of Turf and Ornamentals, serving the nursery, green house, lawn care, golf, sod, and sports turf markets, delivering Pursell’s complete controlled-release fertilizer product portfolio to channel partners and end-user customers.
Pursell said Abetz brings hands-on experience in nutrient management as a former Assistant Golf Course Superintendent and Nursery Operations Manager, plus more than 20 years in chemical and fertilizer sales and product development. It said he has introduced multiple products and new product categories and is highly respected in the industry, frequently speaking at landscape, golf, and nursery association meetings.
“We’re excited to welcome Bill to the Pursell team, and know that his experience, knowledge, and passion will further enhance our ability to fulfill the unique and specialized needs of the turf and ornamentals markets,” said Nick Adamchak, Pursell Agri-Tech President and CEO.
K+S Group, Kassel, posted a 262 percent increase in EBITDA to €969 million (approximately $1.065 billion at current exchange rates) for the year ended Dec. 31, 2021, up from €267 million for the previous year. The FY21 result included a one-off gain of €219 million from the completion (in December) of the REKS waste management joint venture transaction (GM Dec. 31, 2021).
Revenues were up 32 percent, to €3.2 billion versus the year-ago €2.4 billion.
Agriculture customer segment revenues increased 34 percent to €2.3 billion, mainly driven by “significantly” higher average prices (+28 percent) and an increase in year-over-year sales volumes by around 300,000 mt to 7.62 million mt, the company reported.
The Industry+ customer segment reported 29 percent higher revenues in 2021, to €941 million, up from €731 million the previous year. Strong demand in the de-icing salt business and the chemical industry, as well as higher prices for industrial potash, contributed to the positive development.
“Even with a view to the war in Ukraine and the associated dynamics in sales prices, as well as energy risks, we are sticking to our previous forecast for FY22 of an increase in EBITDA to between €1.6 billion and €1.9 billion,” said K+S Chairman Burkhard Lohr.
Due to the continued favorable market environment in the Agriculture customer segment, K+S expects the average price of the product portfolio to rise sharply again in FY22. Sales volumes are also expected to increase slightly once again.
Responding to an analyst’s question at a company earnings call on March 10, outgoing CFO Thorsten Boeckers said the U.S. is becoming “a more and more important market” for K+S, especially from the Bethune mine. He said the company achieved sales of 250,000 tons in 2021 to the U.S., and that it should be able to double the amount “in the next few years.”
The CFO highlighted that it was never clearer than today that it was “a strategic perfect move” to build the Bethune mine.
“We are so happy to be in North America with at least one mine, and a big mine, which will be growing over the years,” he said.
Boeckers reminded analysts that K+S’ initial ramp-up plan for Bethune was to ramp up tons “step-by-step” and increase secondary mining, and from time-to-time – as required – enlarge the company’s logistics. An increase of 100,000 mt/y was the plan for 2022, taking the mine to 2.1 million mt/y production capability.
“As our balance sheet has improved dramatically, the best investment is speeding up the ramp-up,” he said, but added that the opportunities were limited.
“So we might do a bit more than 100,000 mt/y [in 2022], but 200,000 mt/y is already very optimistic,” said the CFO.
Regarding reports that K+S’ Industry+ customer segment is up for sale, Lohr told analysts K+S is “not actively looking” for a sale. However, he said the company would listen if someone knocked on the door wanting to talk about a potential transaction.
The K+S Board of Executive Directors and the Supervisory Board intend to propose a dividend of 20 cents per share to the Annual General Meeting on May 12. In accordance with the K+S’ new dividend policy, the amount will consist of a basic dividend of 15 cents and a premium of 5 cents.
Uralkali swung to profit in the year ending Dec. 31, 2021, reporting a net profit of $1.77 billion versus a $43 million net loss for the previous year, according to the company’s IFRS statements published on March 4.
The company attributed the FY21 net profit performance as mainly due to higher operating profits, positive foreign exchange differences, and fair value gains on derivatives.
Full-year EBITDA more than doubled to $2.56 billion, up from the prior-year $1.22 billion, while revenue was up 54 percent, to $4.16 billion from $2.70 billion.
Uralkali CEO Vitaly Lauk cited the global potash market’s favorable conditions during the reporting period as positively impacting the company’s key operating results.
“Flexibility of our sales ensured an optimum and balanced production volume in 2021 amid a general increase in potash prices and its limited supply,” said Lauk.
Uralkali increased potash production by 9 percent last year to 12.3 million mt, up from 11.3 million mt in FY20. However, sales volumes were lower year-over-year, slipping by nearly 6 percent to 12.0 million mt in 2021, down from 12.7 million mt the previous year.
Export sales volumes were down almost 10 percent, at 9.1 million mt versus the year-ago 10.1 million mt, while sales volumes to the domestic market increased by 11 percent, to 2.9 million mt from the year-ago 2.6 million mt. The company cited increased sales to Russian NPK producers and the country’s agricultural sector as driving the increase in its sales volumes to the domestic market last year.
The average potash export price for FY21 increased to $299/mt FCA, compared with $166/mt FCA in FY20, reflecting the increases in global potash prices over the past 12 months and more.
Lauk said Uralkali continues its normal operations and is closely monitoring the current geopolitical situation.
Uralkali expects global potassium chloride deliveries this year to be around 68-71 million mt by the end of 2022, “amid high prices and limited supply of potash” in the world market. This compares to the company’s estimated 71 million mt of deliveries last year.
Uralkali said its EGM in December voted to pay dividends on outstanding preferred shares based on its first nine months of 2021 results, and not pay dividends on the outstanding ordinary shares.
Russia’s Industry and Trade Minister on March 10 announced that Russia will temporarily suspend exports of fertilizers.
Last week, the ministry recommended that fertilizer producers temporarily halt exports, citing logistics problems (GM March 4, p. 1). But information on the specific products involved and the list of countries to be affected is hard to access, as well as the timeframe.
According to a Tass report citing the Industry and Trade Ministry on March 10, Vladimir Putin has indicated that obligations to “friendly” countries would be maintained.
“With countries that have friendly relations with Russia, we have agreements on unconditional provision of their need for mineral fertilizers,” Putin said in a government meeting, Tass reported
“First of all, we need to guarantee fertilizer supplies for the domestic market for our farmers, but we have resources, we are ready to supply our foreign partners,” he said, Tass reported.
According to a ForexLive report, the list of “unfriendly countries” includes the U.S. and Canada, Member States of the European Union, the U.K., Ukraine, Norway, Japan, Australia, New Zealand, South Korea, and Taiwan.
Notably, Brazil is not on the “unfriendly countries” list, as cited by the report. However, the countries list could not be verified by Green Markets at press time.
Russia early last month imposed a ban on ammonium nitrate (AN) exports for two months, starting on Feb. 2 until April 2 (GM Feb. 4, p. 29). The move was to ensure that the country has enough product for its domestic season, according to the government’s press service.
Putin on March 10 warned that the price of fertilizers across the globe may spike further if the West continued to create “difficulties” for his country, according to a Tass report.
“Russia and Belarus are one of the largest suppliers of mineral fertilisers to world markets. If they continue to create any problems with financing this work, insurance, logistics, delivery of our goods, then the prices, already are already exorbitant, will grow even more,” he said.
Russia produces 50 million mt/y of fertilizers, accounting for nearly 13 percent of the world’s total output.
The Russian government on March 10 also approved a list of imported goods and equipment that are temporarily prohibited from being exported from Russia. The decision will be effective until the end of 2022. The ban is reported to cover more than 200 products.
The list includes technological, telecommunication, and medical equipment, vehicles, agricultural machinery, and electric equipment, as well as railway cars and locomotives, containers, turbines, metal and stone cutting machines, video displays, projectors, consoles, and switchboards, the government said on its website.
According to the government website, the export of these goods has been suspended to all countries, excluding member states of the Eurasian Economic Union (EAEU), Abkhazia, and South Ossetia.
In addition, Russia has also suspended the export of several types of timber and timber products to countries that “are undertaking hostile actions” against Russia. This ban will also run until the end of this year.
The Russian government said the trade measure is “necessary to maintain stability on the Russian market.” It stopped short of curbing sales of energy and raw materials, the country’s biggest contribution to global trade.
Record high natural gas prices in Europe have led to several announcements by fertilizer producers this week of fresh production curtailments.
Yara International ASA said on March 9 it is temporarily curtailing production at its Ferrara, Italy, and Le Havre, France, plants as a consequence of record-high natural gas prices in Europe. The two plants have a combined annual capacity of 1 million mt/y ammonia and 0.9 million mt/y urea.
Including optimization and maintenance at other production facilities, Yara said its European ammonia and urea production is expected to be operating at approximately 45 percent of capacity by the end of this week.
The company said it will continue to monitor the situation and “to the extent possible, use its global production system to keep supplying customers and secure continuity in food supply chains, but curtailing production where necessary due to challenging market conditions.”
Hungarian producer Nitrogenmuvex also this week said it is temporarily halting output of ammonia, citing high natural gas prices.
Vienna-based Borealis AG, another European producer, is running its ammonia production at a reduced rate due to the high natural gas prices in Europe, and is considering halting output “for economic reasons,” according to a Bloomberg report on March 9th, citing a company spokesperson.
High natural gas prices caused Yara to idle a significant amount of European production last fall (GM Sept. 17, 2021), though it eventually resumed.
It is worth reminding that gas currently being used by ammonia producers in Europe is based on prices from a few weeks ago, when gas prices were lower.
Despite natural gas prices soaring to a record level earlier this week, CF Industries Holding, Inc., Deerfield, Ill., parent company of the U.K’s CF Fertilisers, has said there has been no change to its operational status in the U.K.
The company’s Billingham complex in Teeside, northeast England, remains online and is producing ammonia, nitric acid, and ammonium nitrate, as well as by-product CO2from the ammonia production process, according to a report by the U.K’s City A.M. newspaper on March 10.
CF said it is continuing to monitor energy market conditions and “to have conversations with customers about the current commercial environment.”
The U.K.’s carbon dioxide industry came to an agreement with CF on Feb. 1 to ensure a sustainable supply of CO2 (GM Feb. 4, p. 28). An existing agreement between CF and its industrial gas customers expired on Jan. 31 (GM Jan. 28, p. 29).
The new offtake and pricing deal with CF and its U.K. industrial gas customers, according to some U.K. media sources at the time – before the current Russia-Ukraine crisis – was announced by the country’s Department for Business, Energy, and Industrial Strategy, and was set to last until the spring. However, it is unclear if this is just conjecture on the basis that natural gas prices may ease with the onset of warmer weather.
CF’s two U.K. plants – the other is at Ince, Cheshire – produce an estimated 60 percent of the U.K.’s commercial supply of the by-product gas. CF has kept its Ince manufacturing plant in Cheshire in northwest England closed since halting operations there on Sept. 15 due to high natural gas prices (GM Sept. 17, 2021). The company also closed the Billingham complex on Sept. 15, but resumed production at the plant with the support of the U.K. government and the CO2 industry later that month (GM Oct. 15, 2021; Sept. 24, 2021).
Meanwhile, ammonium nitrate (AN) prices have skyrocketed over the past week in line with the volatility in European natural gas markets. CF Fertilisers this week posted a new price for AN at £900/mt (approximately $1,183/mt at current exchange rates) FCA for April deliveries in the U.K., a record high for U.K. AN.
Yara was reported to have increased its AN price in France to €1,205/mt CPT (approximately $1,324/mt at current exchange prices). Somesources were of the view that Yara is testing the AN market; if buyers accepted the higher price, then the company may restart the ammonia plant. If the higher prices were rejected, then Yara would keep the plants closed.
Dutch TTF front-month gas, the European benchmark, on March 10 had more than halved from the record high of €345 (approximately $379 at current exchange prices) per megawatt hour hit on March 7, after the Biden administration announced it would impose a ban on U.S. imports of Russian energy. The U.S. ban will include Russian oil, liquefied natural gas, and coal.
The U.K. also said this week it will end imports of Russian oil and oil products by the end of 2022, but other European nations have yet to take decisions on Russian energy import embargoes.
Milder weather forecast for some parts of Europe and robust wind and solar power output were also helping to keep gas prices in check. Traders were also waiting on news on talks between Russia’s and Ukraine’s foreign ministers, which were due to start in Turkey on March 10. Late-day reports on March 10 suggested the talks had made little progress.
The TTF front-month contract (currently April) was at €133 per megawatt hour as of 4:59 p.m. (GMT) on March 10, down 14.678 percent on the day.
Europe relies on Russia for around 40 percent of its natural gas, and around one-third of that gas transits Ukraine.
Russian gas shipments via a key transit route crossing Ukraine were reported to be flowing normally on March 10, a Bloomberg report cited Russian state-owned gas supplier Gazprom PJSC as stating. However, there were reports earlier in the week of Russian threats to cut supplies of natural gas via the Nord Stream 1 pipeline to Europe.
But “overall nervous sentiment about the future of European gas supply is still imminent,” Energi Danmark A/S wrote in a client note, as cited by a Bloomberg report.
“We expect fluctuations [in gas prices] to remain extremely high in the coming days,” the energy trading group wrote.
In its latest move to ratchet up the pressure on Moscow following Russia’s invasion of Ukraine, the European Union (E.U.) on March 9 expanded its list of sanctioned individuals to include the heads of three of the country’s biggest fertilizer companies. They are among 14 wealthy Russian individuals and some of their family members, and more than 140 members of the upper house of the Russian Parliament.
They include Andrey Melnichenko, the founder and controlling shareholder of Zug, Switzerland-based EuroChem Group AG; Uralchem JSC owner and CEO Dmitry Mazepin, who is also the Deputy Chairman of Uralkali PJSC and, via Uralchem, Uralkali’s owner; and Andrey A. Gurvey, the CEO of PhosAgro PJSC.
Gurvey on March 10 resigned his position as CEO, and PhosAgro’s Board of Directors appointed Mikhail Rybnikov in his place. Xavier Rolet is also stepping down as PhosAgro’s Chairman. Rolet, a former London Stock Exchange Group CEO, has also resigned from his PhosAgro Board membership.
Andrey A. Guryev and his father, Andrey G. Guryev, who was founder of PhosAgro and whose family holds a controlling stake in the company, have also resigned from their PhosAgro Board memberships.
Following his inclusion on the E.U. sanctions list, Andrey Melnichenko has ceased to be the beneficiary of the EuroChem Group and has exited its Board of Directors, according to an Interfax report, citing a EuroChem statement.
Melnichenko had previously controlled 90 percent of EuroChem Group AG via Cyprus-based AIM Capital SE. The remaining 10 percent interest comprises treasury shares. The statement does not specify how the company’s ownership would now be structured.
Limited Liability Company Uralchem Fundamental Chemical Co. (Uralchem Fundamentals LLC) announced late on March 10 that Dmitry Mazepin, who previously held a 100 percent stake in the company, has sold a 52 percent controlling stake from his holding. Mazepin thus now has a 48 percent stake in the company, according to the statement.
Mazepin also resigned from the position of the CEO of Uralchem JSC, which is a wholly-owned subsidiary Uralchem Fundamentals LLC. Dmitry Konyaev, who previously chaired the Board of Directors of Uralchem JSC, was appointed the new CEO of Uralchem JSC. Replacing Konyaev as the Board Chair at Uralchem JSC is Dimitry Tatyanin, who previously was its Deputy Chairman of the Board.
Uralchem Fundamentals LLC owns several of the largest chemical companies in Russia: Uralchem JSC (the parent company of Uralkali PJSC), TogliattiAzot PJSC, and GaloPolymer JSC.
Mazepin’s son, Nikita, the Formula One driver, was also included in this latest E.U. sanctions list. Nikita Mazepin’s contract was recently terminated with the Haas F1 Team, according to the E.U. Journal.
Uralkali, the title sponsor of Uralkali Haas F1 team, announced on March 9 that it had been advised by the team of their unilateral termination of the sponsorship agreement with the company due to the current geopolitical situation.
Uralkali said it views the team’s decision as “unreasonable,” and believes that sports should always be free of politics and pressure from external factors. Consequently, Uralkali said it intends to protect its interests in line with applicable legal procedures and reserves its rights to initiate judicial proceedings, claim damages, and seek repayment of the significant amounts Uralkali had paid for the 2022 Formula One season.
The E.U. this week has also moved to cut off three Belarusian banks from the SWIFT international payments system: JSC Belagroprom Bank, Bank Dabrabyt, and the Development Bank of the Republic of Belarus.
Polyolefins and fertilizers major Borealis AG, Vienna, said on March 10 it has decided to decline the binding offer it received from EuroChem Group AG on Feb. 2 for the acquisition of Borealis’ nitrogen business. The two had been in exclusive negotiations (GM Feb. 4, p. 1).
“We have closely assessed the most recent developments around the war in the Ukraine and sanctions that have been put in place,” Borealis’ CEO Thomas Gangl said. “As a consequence, we have decided to decline EuroChem’s offer for the acquisition of Borealis’ nitrogen business, including fertilizer, melamine, and technical nitrogen products.”
Borealis said it will now consider various options regarding the future of its nitrogen business.
The EuroChem offer valued the Borealis Nitrogen business on an enterprise value basis at €455 million (approximately $500 million at current exchange rates).
That Borealis and its parent company, Austrian oil and gas company OMV AG, which owns a 75 percent stake in Borealis, would pull the plug on negotiations with EuroChem had been anticipated after Russia invaded Ukraine.
Zug, Switzerland-based EuroChem until March 10 was controlled by Russian billionaire Andrey Melnichenko, who was put on the E.U. sanctions list on March 9 (see story, page one).
There also had been doubts whether Austrian regulatory approval for any deal with EuroChem would be secured in the light of sanctions against Russia (GM March 4, p. 29).
Borealis said on March 11 it is re-evaluating its business transactions with Russia in compliance with all applicable laws, including, where relevant, U.S., U.K., and E.U. sanctions.
“For the time being, we have decided to stop sales to Russia and Belarus. Sales volumes are being redirected to Western Europe,” the company said.
“We are implementing measures required to ensure the stability in procurement of materials for Borealis’ production sites. We are phasing out sourcing from Russia and Belarus, shifting to sources from the West.”
Last weekend, Austrian oil and gas company OMV AG, which owns a 75 percent controlling stake in Borealis, had said in light of the latest developments in Ukraine, it is re-evaluating its engagement in Russia.
“While Russia has been one of the core regions in OMV’s Exploration & Production portfolio, the Executive Board has taken the decision not to pursue any future investments in Russia,” the company said on March 5.
OMV already has ended all negotiations with Russian state-owned gas company Gazprom PJSC about the potential purchase of a 24.98 percent stake in blocks 4A/5A of the Achimov-Formation in Russia’s Urengoy gas and condensate field (GM March 4, p. 29). It said it is now initiating strategic review of its 24.99 percent interest in Yuzhno Russkoye and all options, including possibilities to divest or exit.
OMV is also reviewing its involvement in the Nord Stream 2 pipeline, which is 50 percent owned by Gazprom. The pipeline, which runs under the Baltic Sea from Russia to Germany and would handle Russian gas, was completed last September, but has not secured an operating licence. Following Russia’s invasion of Ukraine, Germany suspended its certification of the pipeline (GM Feb. 25, p. 1).
OMV said it takes its responsibility to supply Europe and Austria with natural gas “seriously.”
“Households, institutions, and the industrial sector rely on dependable gas supplies, including gas from Russia, which is supplied under longstanding contracts,” the company said, adding that it is working to identify and develop additional sources of supply.
Higher prices and good demand helped Intrepid Potash Inc., Denver, move into the plus column for the fourth-quarter and year-ending Dec. 31, 2021. Fourth-quarter adjusted net income was $8 million ($0.60 per diluted share), up from the year-ago loss of $520,000, while full-year was $21.8 million ($1.63 per share), up from 2020’s loss of $19.3 million.
“The fourth quarter was highlighted by solid cash flow and a significant increase in EBITDA compared to the prior period led by the strong commodity environment and rising fertilizer prices,” said Bob Jornayvaz, Intrepid’s Executive Chairman and CEO. “Pricing and demand strength have continued into the first quarter of 2022, and we expect another quarter of increasing realized prices. The fertilizer and agriculture market outlook remains very strong, and we are poised to drive significant increases in bottom line-results in 2022.”
The uptick came despite a decrease in potash production due to wet, humid, and cooler weather at the HB facility in Carlsbad. As a result, the company recorded fourth-quarter abnormal production costs of $2.4 million and full-year at $6 million.
“We are coming off nearly 18 months of strong potash demand, which, combined with our production shortfalls, has left us with lower inventory levels and less production available for sale than in the first half of 2021,” Matthew Preston, Vice President of Finance told analysts on March 8. “We expect first-half 2022 potash sales of approximately 130-140,000 tons, split evenly between the first and second quarters.” First-half 2021 potash production was 164,000 st.
“Like many industries, we are experiencing some logistical delays with truck availability, which could push sometimes into the second quarter, but will not lower our overall first half sales,” he added. “Product inventory and production are expected to return to historic averages in the second half of the year, which should drive an improvement in our per ton potash cost of goods sold, despite general inflationary pressures.”
“Overall, the outlook in the potash market has arguably never been better,” Jornayvaz told analysts. He added that the company is looking to increase production, including increased solution mining at the HB mine and a new cavern at Moab, as well as bringing on an additional crew at the East Trio facility.
The company added that what is going on globally should provide a good floor for potash prices, and they should be very stable for 12-18 months.
“It obviously works to our benefit that we’ve got fewer tons to supply,” said Jornayvaz. “The domestic market is extremely tight. And so if you look at the threat of the Canadian rail strike, if that were to happen, the U.S. market would become much, much tighter.
“But I would say that the domestic market is a very tight market, and so the price increases that we’ve announced, we’re able to achieve all of them, with very little pushback from customers,” he continued. He added that while potash prices still remain in the 3-5 percent of input cost, farmers are making plenty of money, and the potash that they can find they can surely afford to buy. He said Intrepid’s premium and granular products are on total allocation.
Full-year Trio production was up for the year, though it was off for the fourth quarter. The company said it recently added an extra production shift at its East Trio mine to help it add some much-needed production to meet strong demand and positive outlook for specialty fertilizer through the first half.
“Oilfield activity remains strong in the Delaware Basin, with water volumes and other oilfield services revenue increasing, although segment results have lagged due to increased water purchases and lease, contract labor, and rental expenses,” Jornayvaz added. “We continue to see good demand for water across our South Ranch and expect to benefit from activity closer to our infrastructure during 2022.”
He told analysts that the company has sold out its near-term water book, and is working with third-party providers to source more water. He said due to higher oil prices, oilfield activity quickly picked up.
The company also announced a joint feasibility study alongside the New Mexico Water Consortium and the New Mexico Environment Department to evaluate the potential of using treated produced water from oil and gas operations as injectate for the HB Solar Solution Mine. The mine currently utilizes naturally occurring salt brine and groundwater as permitted injectates.
This green pilot project is preliminarily scheduled to begin testing as early as the third-quarter 2022. The company said if successful, the project will aid in conserving existing groundwater sources in addition to advancing and promoting Intrepid’s Environment, Social, and Governance (ESG) goals.
In other news, in February the Board of Directors approved a $35 million share repurchase program.
Fourth-quarter and full-year net income both surged based on the release of $215.9 million of valuation allowance for deferred tax assets. Fourth-quarter net income was $223.9 million ($16.66 per diluted share) on sales of $71.8 million, compared to the year-ago loss of $711,000 ($0.05 per share) and $48.4 million, respectively.
Fourth-quarter gross margin and operating income were $21.8 million and $15 million, compared to the year-ago $5.8 million and loss of $507 million, respectively. Adjusted EBITDA was $24.8 million, up from the year-ago $9.9 million.
Full-year net income was $249.8 million ($18.66 per share) on sales of $270.3 million, up from the year-ago loss of $27.1 million ($2.09 per share) and $196.9 million, respectively. Gross margin and operating income were $55.8 million and $32.3 million, up from the year-ago $10.5 million and loss of $23.2 million, respectively. Adjusted EBITDA was $67.6 million, up from $20.8 million.
| Potash | 4Q-21 | 4Q-20 | YTD-21 | YTD-20 |
| Sales (000 st) | 38,807 | 27,556 | 151,751 | 108,060 |
| Gross Margin ($000) | 12,516 | 3,847 | 35,845 | 11,551 |
| Sales Volume (000 st) | 61 | 78 | 331 | 317 |
| Production Vol. (000 st) | 86 | 106 | 287 | 308 |
| Avg Realized Price ($/st) | 504 | 248 | 353 | 250 |
| Trio | 4Q-21 | 4Q-20 | YTD-21 | YTD-20 |
| Sales (000 st) | 24,612 | 15,565 | 96,058 | 70,287 |
| Gross Margin ($000) | 7,913 | (375) | 16,442 | (8,505) |
| Sales Volume (000 st) | 48 | 50 | 239 | 230 |
| Production Vol. (000 st) | 53 | 58 | 228 | 213 |
| Avg Realized Price ($/st) | 388 | 188 | 295 | 195 |
| Oilfield Solutions | 4Q-21 | 4Q-20 | YTD-21 | YTD-20 |
| Sales (000 st) | 8,479 | 5,390 | 22,770 | 18,929 |
| Gross Margin ($000) | 1,420 | 2,342 | 3,477 | 7,484 |
