All Posts from July 24, 2014

PotashCorp 2Q income exceeds guidance

While Potash Corp. of Saskatchewan Inc. second quarter income was below year-ago levels, it exceeded company guidance. “Robust global fertilizer demand provided a supportive earnings environment during the quarter,” said PotashCorp President and CEO Jochen Tilk. “Performance in all three nutrient segments improved from the beginning of the year and resulted in our second-quarter earnings exceeding the upper end of our guidance range. Although results were below those of the same period last year, an improving price environment and – in the case of potash and nitrogen businesses – cost efficiencies contributed to our bottom line.”

Second-quarter net income was off 27 percent to $472 million ($0.56 per diluted share) on sales of $1.89 billion, down from the year-ago $643 million ($0.73 per share) and $2.14 billion, respectively. Six-month net income was $812 million ($0.95 per share) on sales of $3.57 billion, down from $1.2 billion ($1.37 per share) and $4.24 billion, respectively.

With an improved demand outlook, PotashCorp has increased its estimate for potash gross margins for the year to $1.2-$1.4 billion and annual potash sales of 8.0-9.2 million mt.

On the nitrogen side, PotashCorp said full-year margins could approach record results.

PotashCorp expects third-quarter net income to be in the $0.35-$0.45 per share range and the company has increased its annual expectations to $1.70-$1.90 per share.

Tampa sulfur moves up, NH3 rolls over

Third-quarter sulfur prices at Tampa have been concluded at $136/lt DEL, up $3/lt from second-quarter figures. In the meantime, Tampa ammonia prices for August have rolled over from July prices at $520/mt CFR.

Arthur Companies to build liquid fert terminal for Koch Nitrogen

Arthur Companies Inc. has announced an agreement to build and lease a liquid fertilizer terminal near Harvey, N.D., for exclusive use by Koch Nitrogen Company LLC. The new facility will store 2.5 million gallons of liquid fertilizer. Construction is scheduled to begin later this summer.

“As liquid fertilizer use continues to grow in central North Dakota, we’re happy to be working on a project that will result in more opportunities for the grower,” said Brooks Burgum, CEO of Arthur Companies. “By working with Koch Nitrogen, we are gaining a partner that understands the values and needs of the customer.”

Headquartered in Arthur, N.D., Arthur Companies’ range of businesses include grain elevators, farms, a birdseed company, and the Agresource wholesale fertilizer operation in Carrington, N.D. In addition to the Harvey, Arthur, and Carrington locations, Arthur Companies also operates North Dakota grain and agronomy facilities at Anamoose, Ayr, Buffalo, and Page.

“This project is an important step in our ongoing efforts to provide value for our customers,” said Scott McGinn, Koch Fertilizer’s senior vice president, North America. “I am confident our relationship with Arthur Companies will greatly benefit the strategic growth of our liquid fertilizer business in the Northern Plains.”