All Posts from November 7, 2012

Agrium 3Q hammered by one-time charges

Agrium Inc. reported a 56 percent drop in net earnings for the third quarter ending Sept. 30, 2012, to $129 million ($0.80 per diluted share) on sales of $2.96 billion versus the year-ago $293 million ($1.85 million) on sales of $3.14 billion. Excluding major one-time charges, third quarter earnings were $215 million.

Agrium said its Wholesale nitrogen and Retail businesses delivered solid earnings. Gross profit from nitrogen was the highest for a third quarter in history, while Retail EBITDA nearly matched year-ago results. Potash results were impacted by downtime at the company’s mine due to its major expansion as well as a weaker potash market stemming from delayed contracts to India and China.

For more details, see the Green Markets Web Edition November 12.

Agrifos looks to build N plant

Agrifos Holdings Inc. said today that while it has sold its production assets in Pasadena, Texas, to Rentech Nitrogen Partners LP (GM Nov. 5, p. 1), it will retain full ownership of 350 acres of land adjacent to the plant site sold to Rentech and the site will be used to build a world‐scale nitrogen fertilizer plant with deep‐water access.

Agrifos has formed a new, wholly-owned subsidiary, Pasadena Nitrogen LLC. which will be the vehicle for developing, constructing and operating the production facility.
“We believe that our Pasadena site will be very suitable for development of a new nitrogen fertilizer plant, combining Houston’s well developed gas supply infrastructure and supplies, efficient logistics to agricultural markets in the US and internationally, and a site in the heart of America’s chemical industry,” Farouk Chaouni, Agrifos chairman.

Agrifos said it has already completed a basic feasibility study for the project and plans to initiate permitting activities in the near future. Agrifos noted that it is currently the sole owner of Pasadena Nitrogen, which was not part of the Nov. 1, 2012 transaction with Rentech. Agrifos intends to partner with a major international participant in the fertilizer sector in developing Pasadena Nitrogen.

Agrifos is also a shareholder in JDC Phosphates of Fort Meade, Fla., through its affiliate Vulcan Phosphates, as well as Agrifos West Africa, based in Dakar, Senegal. Macquarie Capital Inc. was Agrifos’ exclusive financial advisor in the sale of Agrifos LLC to Rentech. Seward & Kissel LLP served as lead transaction counsel to Agrifos.