Major players have concluded Tampa anhydrous ammonia at the $470/mt CFR mark for August, down some $55-$57/mt from business concluded for July. Phosphate producers who have been seeing lower prices for their own products are aggressively seeking the same for their input costs. If current price ideas for third-quarter sulfur hold, those prices should be down at least $60/lt or 39 percent from the second-quarter’s $155/lt to $95/lt.
Potash Corp. of Saskatchewan Inc. reported net income of $643 million ($.73 per diluted share) on sales of $2.14 billion for the second-quarter ending June 30, 2013, compared to the year-ago $522 million ($0.60 per share) on sales of $2.4 billion.
“Global fertilizer demand was strong during the quarter, but highly competitive markets around the world had an impact on our results,” said PotashCorp President and CEO Bill Doyle. “Despite some weakening of prices in each of our nutrients, the continued engagement of buyers in our key markets was a positive sign.”
Six-month net income was $1.2 billion ($1.37 per share) on sales of $4.24 billion versus the year-ago $1.01 billion ($1.16 per share) on sales of $4.14 billion.
However, PotashCorp has adjusted its forecast for full-year earnings to $2.45-$2.70 per share. This is down from April’s forecast of $2.75-$3.25 per share. The third-quarter forecast is $0.45-$0.60 per share.
The full-year forecast for potash gross margins is $1.8-$2.1 billion, down from April’s forecast of $1.9-$2.4 billion. Estimated potash shipments for the year remained the same at 8.5-9.2 million mt.
The full-year forecast for combined nitrogen and phosphate margins is $1.3-$1.5 billion, down from April’s forecast of $1.4-1.7 billion.
In other news, PotashCorp’s board of directors has approved the commencement of a share repurchase program authorizing up to $2 billion in repurchases of PotashCorp’s outstanding common shares (5 percent of its outstanding common shares) over a one-year period through a normal course issuer bid. The commencement of the share repurchase program is subject to regulatory approval.
At least 12 railcars derailed early this morning at the Port of Tampa, closing the main part of the port, according to local reports. Firefighters were using foam to clean up ethanol that leaked from a few of the railcars. Reports are that it could take most of the day to remove the railcars.
Major players have concluded Tampa sulfur prices for the third-quarter, with new deals reported at $95/lt, down from the second-quarter’s $155/lt, a 39 percent drop.
