All Posts from May 5, 2020

The Andersons Posts $38 M Loss; Fertilizer a Bright Spot

The Andersons Inc., Maumee, Ohio, posted a first-quarter net loss attributable to the company of $37.7 million on revenues of $1.85 billion, versus a year-ago loss of $14 million and revenues of $1.98 billion.  The Plant Nutrient Group improved year-over-year results by $2.7 million, recording a pretax loss of $1.2 million on lower operating and interest expenses.

“Most parts of our business were off to a decent start to the quarter, but the COVID-19 pandemic had a profound negative impact on our operating results,’ said President and CEO Pat Bowe. “Stay-at-home orders reduced vehicle miles traveled, which in turn dramatically reduced demand for gasoline, ethanol and corn, significantly hurting the performance of both the Ethanol Group and Trade Group. The Plant Nutrient Group demonstrated resiliency during the quarter as results improved year-over-year and benefited from a good start to the planting season.”

Compass Reports Increased Income, Volumes

Compass Minerals, Overland Park, Kan., reported first-quarter net earnings of $27.6 million on revenues of $413.9 million up from the year-ago $7.6 million and $403.7 million, respectively. North American plant nutrient sales volumes were up at 96,000 mt from the year-ago 57,000 mt, while South America’s were up at 68,000 mt from 52,000 mt.

“Despite mild winter weather throughout most of our highway deicing service markets, our strong Salt price performance and a rebound in specialty plant nutrition demand in both North and South America fueled strong earnings results for us in the first quarter,” said Kevin S. Crutchfield, Compass Minerals President and CEO.

Nutrien Takes Down Ammonia Plant

Nutrien Ltd., Saskatoon, announced today that it has made the difficult decision to temporarily shut down one of the four ammonia plants at its Trinidad facility. It said temporary shutdown is in response to the current market price of ammonia. The plant has an annual ammonia capacity of 600,000 mt/y.  The other three ammonia plants and one urea facility at the site will continue to operate at normal rates.     

Nutrien expects the shutdown to last for a minimum of three months. It said it will continue to monitor market conditions going forward as it assesses any further changes in production.

Mosaic Reports 1Q Results

The Mosaic Co., Tampa, reported a first-quarter net loss of $203 million, including $295 million of noncash foreign currency losses, which were primarily offset in other comprehensive income on the balance sheet. Adjusted net loss was $21 million, a decrease of $119 million from the prior year, as lower finished goods prices were partially offset by lower phosphate raw material costs and strong sales volumes. First-quarter net sales were $1.8 billion and finished goods sales volume increased 14 percent.

Uralkali Says New China K Price Not An Appropriate Level For The Industry

Uralkali, Moscow, said earlier today it believes that the commercial conditions that were reached by Belarusian Potash Company (BPC) with the Consortium of Chinese Buyers for the new potash supply contract “do not reflect the real market situation that is developing at this time, or its outlook”. 

“The price that has been agreed is not appropriate either for the length of that particular contract, or for the industry as a whole,” said Urakali in a statement on its website. “We will need to consider whether we are prepared to conclude contracts at the price set by BPC.” 

BPC announced on April 30 it had agreed a new contract price of $220/mt CFR with the Consortium of Chinese Buyers for standard potash deliveries in 2020. The agreed price marks a $70/mt reduction on the previous seaborne contract price of $290/mt CFR struck in September 2018, or almost 25 percent lower. The seaborne contract price that China agrees with the first supplier is then traditionally used in other seaborne contracts between the country and other international suppliers.