All Posts from April 2, 2014

Agrium 1Q impacted by late spring

Agrium Inc. announced today that the late spring season this year is expected to result in first quarter earnings per share just above breakeven. The slow start to the spring season is expected to impact the timing of Wholesale, and to a lesser extent Retail, earnings. First quarter Wholesale results were also impacted by reduced rail availability and the usual lag in realized wholesale nutrient prices.

Additionally, the Carseland nitrogen facility experienced a failure in the auxiliary boiler on March 22, 2014. There will be an unplanned shutdown to fix the boiler which is expected to be complete in the second half of May 2014. The shutdown is anticipated to lower product availability of urea by approximately 100,000 mt and ammonia by approximately 20,000 mt in the second quarter of 2014.

Agrium will provide guidance for the second quarter with first quarter results, to be issued on May 6, 2014. Agricultural fundamentals continue to improve and Agrium anticipates a strong spring season which will benefit both Retail and Wholesale results in the second quarter.

CHS nitrogen plant reported on hold

CHS Inc. has reportedly put its proposed nitrogen plant for Spiritwood, N.D. on hold, according a report in today’s Jamestown Sun. The paper cited a CHS spokesperson who said the plant had “significantly higher than expected construction and labor cost estimates,” which were prompting further review. CHS was expected to announce a decision on the project within the next few months. A CHS spokesperson was not immediately available for further confirmation or details.