All Posts from May 18, 2015

Chemtrade shaves 1Q loss

News, News Briefs

Toronto — Chemtrade Logistics Income Fund shaved its first-quarter losses to C$8.96 million ($0.13 per diluted unit) on revenues of $326 million from the year-ago $21.6 million ($0.39 per unit) and $266.1 million, respectively. Chemtrade cited lower net finance costs in 2015 partially offset by higher levels of depreciation and amortization. The three major company segments all increased their operating earnings. “Chemtrade had a strong start to the year,” said Mark Davis, president and CEO. “The first quarter results reflect the full-quarter contribution of General Chemical business that was acquired in late January 2014. Additionally, we benefited from the strong U.S. dollar and from strength in sulfuric acid.” Sulphur Products and Performance Chemicals had operating income of $20.6 million on revenue of $160.8 million, up from $11.4 million and $137.8 million. Water Solutions and Specialty Chemicals reported income of $13.6 million on revenues of $108.3 million, versus the year-ago $12.8 million and $87.8 million, respectively. International had income of $4.2 million on revenues of $57 million, up from $2.9 million and $40.5 million.

Compass Minerals – Management Brief

Management Briefs

Compass Minerals announced that its Plant Nutrition Division has added David Hernandez as director of research and alliances. Based at the Overland Park, Kan. office, Hernandez will lead the division’s global research partnership activities and manage initiatives related to global regulatory developments. Prior to joining Compass, he worked for Arysta LifeScience as global development manager for biostimulants and value-added nutrients. He earned his B.S. in Agronomy from Central University of Venezuela, an M.S. in Agronomy from Iowa State University in Ames, Iowa, and a doctorate in soil science and nutrient management from Iowa State University.

Yara North America – Management Brief

Management Briefs

Yara North America announced several management changes last week. Bartolomeo Pescio, currently serving as business unit manager North America, has been appointed business unit manager Downstream Europe, effective May 18. Pescio will be located in Brussels and will report to Terje Knutsen, Yara’s head of downstream. In addition, Magnus Horn Strømmen, currently CFO North America, has been appointed to acting business unit manager North America.

The Mosaic Co. – Management Brief

Management Briefs

The Mosaic Co. said May 13 that its board of directors has elected James "Joc" O’Rourke, currently executive vice president – operations and chief operating officer, to succeed James Prokopanko as president and CEO, effective Aug. 5, 2015. After that date, Prokopanko will serve as senior advisor until his planned retirement on Jan. 4, 2016.

"I am quite proud of our accomplishments during Mosaic’s first decade and am confident that Joc will help lead Mosaic to new heights," Prokopanko said. "It has been a great privilege to serve as CEO and help build the world’s leading crop nutrition company alongside some of the most talented people I have ever known. I deeply appreciate the outpouring of support I received during my illness last year, and I am happy to be healthy today. I plan to enjoy my good health with my family."

O’Rourke, 54, has served as Mosaic’s executive vice president – operations and COO since 2012, and joined the company as executive vice president – operations in 2009. Prior to joining Mosaic, he was president, Australia Pacific, for Barrick Gold Corp., the largest gold producer in Australia, where he was responsible for the Australia Pacific Business Unit, consisting of ten gold and copper mines in Australia and Papua New Guinea. Before that, he held various management, engineering and other roles in the mining industry in Canada and Australia. O’Rourke holds a bachelor’s degree in mining and mineral engineering from the University of British Columbia, and an MBA from INSEAD in Fontainebleau, France.

Mosaic said no other changes to the senior leadership team are anticipated at this time.

At Mosaic’s 2015 annual meeting of stockholders May 14, Prokopanko was re-elected to the board for a term of one year, expiring at Mosaic’s 2016 annual meeting. Following his retirement, he will continue to serve on the board through his current term.

The board also expanded its size from 12 to 13 seats, and elected O’Rourke to fill the newly created vacancy and serve as a director for a term expiring at the 2016 annual meeting. He will not serve on any board committees.

Iowa Fertilizer responds to labor concerns

News, News Briefs

Wever, Iowa — After concerns about layoffs and the procurement of out-of-state non-union labor at Iowa Fertilizer Co. here (GM May 11, p. 14), Iowa Economic Development Authority Director Debi Durham facilitated a meeting between Iowa Fertilizer President Shawn Rana and building trade representatives May 8. Rana stressed Iowa Fertilizer’s hiring of both Iowans and union members. “Iowa Fertilizer has been investing in Iowa throughout the construction phase of the project. In fact, since construction began on the Iowa Fertilizer plant, Lee County’s unemployment rate has decreased from 11 percent in 2011 to under six percent in March of 2015. Further, Iowa Fertilizer committed to hiring 165 permanent positions in Iowa; to date, 195 permanent employees have been hired.” As for the recent layoffs, he noted that the company’s Engineering Procurement and Construction (EPC) contractor reassigned work from a San Francisco-based contractor to multiple contractors, including one of the eight Iowa-based contractors onsite. Rana said the contractor who received the largest share of the work is a Davenport, Iowa-based union contractor and that the subcontractors who received the reassigned work are now in place and have been ramping up to rehire the skilled tradesmen that are critical to the construction work at the facility. “By the completion of the project, we anticipate that 78 percent of the project will have been completed by union workers,” he added. He said that although it is outside Iowa Fertilizer and the EPC contractor’s control, at this stage the EPC contractor expects the number of Iowa-based temporary workers after the reassignment of subcontractors to meet, if not exceed, the number of temporary Iowa-based workers before the reassignment. In related news, OCI NV, Iowa Fertilizer’s parent, sees no delay in the project’s timeline, telling analysts April 29 that it expects the ammonia plant to ramp up in September with production in October, followed by urea, UAN, and DEF later in the year.

The Week in Fertilizer Stocks

Fertilizer Stocks

The Week in Fertilizer Stocks

Producer Symbol Price Week Ago Year Ago
Agrium AGU 107.36 108.67 94.15
CF Industries CF 304.29 300.09 248.00
CVR Partners UAN 14.21 14.10 19.91
Intrepid Potash IPI 12.60 12.65 17.00
Mosaic MOS 45.56 44.49 50.00
PotashCorp POT 32.29 32.64 37.13
Rentech Nitrogen RNF 15.61 14.34 17.29
Terra Nitrogen TNH 132.75 128.51 152.09
Distribution/Retail
Andersons Inc. ANDE 45.09 43.13 48.63
Deere & Co. DE 92.21 89.63 91.70
Scotts SMG 65.29 65.88 60.76

Mosaic approves buyback, dividend

News, News Briefs

Plymouth, Minn. — The Mosaic Co. said May 14 that its board of directors approved a new share repurchase authorization in the amount of $1.5 billion, allowing Mosaic to repurchase Class A or common shares through open market purchases, accelerated share repurchase arrangements, privately negotiated transactions, or otherwise. Additionally, the board declared a quarterly dividend of $0.275 per share on the company’s common stock, which is an increase from the previous quarterly dividend of $0.25.

TFI urges Senate to embrace STB rail reforms

News, News Briefs

Washington — The Fertilizer Institute (TFI) on May 13 sent a letter to the House Committee on Transportation and Infrastructure urging support for policies that will promote greater competition between railroads and improve the efficiency and effectiveness of the Surface Transportation Board (STB). The letter from TFI President Chris Jahn was also delivered to the Subcommittee on Railroads, Pipelines, and Hazardous Materials, and urged House support for legislation similar to the Surface Transportation Board Reauthorization Act of 2015 (S.808), which was recently approved by the Senate Committee on Commerce, Science, and Transportation. “Today, there are seven Class I rail carriers, of which four control over 90 percent of the U.S. market,” Jahn said in the letter. “Rail industry consolidation and a lack of competition amongst rail carriers and from other modes of transportation have provided the rail industry with strong market power. For example, motor carriers are typically a noncompetitive and undesirable option for shippers that need to transport products over long distances, especially when it comes to hazardous materials.” Specifically, TFI urged support for legislation requiring the STB to update standards for the rate review process based on revenue adequacy, and to include fertilizer in the STB’s proposed rulemaking related to service reporting requirements. “As a shipper, we also want the STB to be more balanced, efficient, and effective in protecting rail customers in those situations where railroads possess substantial market power,” Jahn said. “It has been 20 years since Congress authorized the STB. After 20 years, it makes sense for Congress to consider ways to modernize the agency with the ultimate goal of benefiting all stakeholders.”

OCP to aid African small farmers

News, News Briefs

Marrakech, Morocco — The OCP Group announced a major commitment to support African smallholder farmers during the recent Clinton Global Initiative Middle East and Africa meeting in Marrakech (GM April 13, p. 14). OCP has committed that, over the next 3 years, it will ensure that 100,000 farmers in six countries in West and East Africa will have reliable, affordable access to appropriate fertilizers and related products and services to boost their productivity and incomes. This commitment, with an approximate value of $5 million over 3 years, will be implemented in close collaboration with key partners and stakeholders in each of the six countries.

PotashCorp donates to Nepal relief efforts

News, News Briefs

Saskatoon, Sask. — Potash Corp. of Saskatchewan Inc. on May 13 announced a donation of US$250,000 to the United Nations World Food Programme (WFP) to help in the international aid effort for the victims of the massive earthquake in Nepal. The donation is being directed to food aid by providing support for the WFP’s US$150 million effort aimed at providing for an estimated 1.9 million people who do not have access to food. “The situation in Nepal is heartbreaking and, as a global citizen whose products help feed the world, we want to lend our support,” said Jochen Tilk, PotashCorp president and CEO. “By joining forces with the World Food Programme, PotashCorp is helping provide basic nutrition to those people rebuilding their lives and their country.”The UN estimates that at least eight million people in 39 different districts of Nepal have been affected by the April 26 earthquake, or about one quarter of the country’s population.

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