All Posts from August 9, 2024

Mosaic Posts 2Q Loss on Lower Prices, Margins; Colonsay Restarted to Meet Strong Demand

China, Earnings, Featured, Florida, Phosphate, Potash

The Mosaic Co. reported a second-quarter net loss of $162 million on net sales of $2.82 billion, down from net income of $369 million and sales of $3.4 million in last year’s second quarter. The quarterly loss was the company’s largest in five years, with Mosaic citing the impact of lower selling prices and margins.

Adjusted EBITDA fell to $584 million from $744 million last year, but beat the average analyst estimate of $576.4 million.

Lower pricing pressured potash operating earnings to $174 million for the quarter, down from $328 million last year. Adjusted EBITDA for the potash segment totaled $271 million, compared to $408 million last year, reflecting the impact of lower prices, partially offset by higher volume and lower costs per mt.

Net sales in the potash segment totaled $663 million, down from $849 million last year, while gross margin fell to $186 million from $336 million. Total potash production in the quarter was 2.2 million mt, up from 1.9 million mt last year, while potash sales volumes firmed to 2.3 million mt from 2.2 million mt last year.

Mosaic confirmed that it restarted its Colonsay mine in July to offset upcoming turnarounds at Esterhazy, and to meet what the company described as the “strong demand outlook as the market responds to the China and India contract settlements.”

Phosphate operating earnings for the quarter fell to $133 million from $146 million last year, while adjusted EBITDA for the segment dropped to $308 million from $385 million, with Mosaic citing lower sales volumes.

Phosphate net sales dipped to $1.2 billion from $1.3 billion last year, while phosphate sales volume totaled 1.7 million mt for the quarter, down 12% from last year. Phosphate production volumes were up 1%, however, to 1.7 million mt.

Mosaic Fertilizantes second-quarter earnings jumped to $61 million from an operating loss of $20 million last year. Adjusted EBITDA for the segment totaled $96 million during the quarter, up from $66 million last year, reflecting higher distribution margins.

Net sales for Mosaic Fertilizantes were $1.0 billion for the quarter, down from $1.4 billion last year due to lower pricing. Gross margin was $102 million, compared to $13 million for the same period last year. Mosaic said cash unit costs of mined rock, phosphate finished products conversion, and potash production all declined from the year ago period, reflecting the company’s focus on cost reduction.

Mosaic said potash sales volumes in the third quarter are expected to be in the range of 2.1-2.3 million mt, with realized mine-gate MOP prices in the $200-$220/mt range. Mosaic said its third-quarter potash pricing guidance reflects a higher mix of international volume. Phosphate sales volumes in the third quarter are expected to be in the 1.7-1.9 million mt range, with DAP prices at the plant projected at $555-$575/mt.

Looking ahead, Mosaic said low stocks-to-use ratios for grains and oilseeds are positives for agriculture fundamentals and should incentivize growers to maximize yields. While corn and soybean prices have softened, the company said nutrients remain affordable, which bodes well for fertilizer demand.

“North American demand is robust, with buyers seeking summer fill after emptying their bins this spring and Brazil in-season demand is solid on concerns of low stocks,” Mosaic said. The company said the long-term phosphate outlook remains favorable amid a 27% year-over-year decline in Chinese exports, while the recent potash contract settlements in China and India “should stimulate buying activities further in Southeast Asia and India.”

“These factors suggest the global potash market is balanced and the phosphate market will remain tight in 2024 and beyond,” Mosaic said.

Mosaic highlighted progress on a number of “low-capital-intensity projects,” include the addition of 800,000 mt of MicroEssentials capacity at its Riverview, Fla., facility; the completion of a potash compaction project at Esterhazy that allows the conversion of standard MOP to granular products, as well as a project to add 400,000 mt of milling capacity at Esterhazy, which is on track for completion in mid-2025; and the construction of a 1 million mt blending facility in Palmeirante, Brazil, which is on track for completion in 2025.

The company also highlighted progress on a cost reduction plan announced last year, and said it has achieved more than one-third of the targeted $150 million run rate compared to the 2023 baseline. Mosaic said it is on track to reduce 2024 capital expenditures by $200 million from 2023 levels.

Nutrien Reports Lower Prices, Increased Retail Earnings for 2Q

Ammonia, Australia, Brazil, Canada, China, Earnings, Featured, India, Natural Gas, Nitrogen, Phosphate, Potash, UAN

Nutrien Ltd. reported second-quarter net earnings of $392 million ($0.78 diluted net earnings per share) and adjusted EBITDA of $2.24 billion, down from $448 million ($0.89 diluted net earnings per share) and $2.48 billion, respectively, in last year’s second quarter. The EBITDA results were up slightly from the average analyst estimate of $2.2 billion.

Nutrien cited lower fertilizer net selling prices and a loss on foreign currency derivatives, partially offset by increased Retail earnings, higher offshore potash sales volumes, and lower natural gas costs.

“Nutrien benefited from improved Retail margins, higher fertilizer sales volumes, and lower operating costs in the first half of 2024,” said Ken Seitz, Nutrien President and CEO. “Our upstream production assets and downstream Retail businesses in North America and Australia have performed well in 2024.”

Nutrien said sales volumes were lower in the second quarter as wet weather in North America impacted the timing of nitrogen applications, while first-half sales volumes were flat from 2023.

Net selling prices were lower in the second quarter and first half for all major nitrogen products, the company said, primarily due to weaker benchmark prices in key nitrogen producing regions. Cost of goods sold per mt decreased in the second quarter and first half mainly due to lower natural gas costs.

Nutrien reported net earnings of $557 million and adjusted EBITDA of $3.3 billion for the first six months, down from last year due to lower fertilizer prices but partially offset by increased Nutrien Ag Solutions earnings, higher potash sales volumes, and lower natural gas costs.

Retail adjusted EBITDA increased to $1.2 billion in the first half supported by strong demand and a normalization of product margins in North America. Nutrien lowered its Retail adjusted EBITDA guidance to $1.5-$1.7 billion, however, due primarily to ongoing market instability in Brazil and the impact of delayed planting in North America in the second quarter.

Potash adjusted EBITDA declined to $1.0 billion in the first half due to lower prices, which more than offset higher sales volumes and lower operating costs. Potash sales volume guidance was raised to 13.2-13.8 million mt due to record first-half sales volumes and the expectation for strong global demand in the second half, Nutrien said, adding that the range “reflects the potential for a relatively short duration Canadian rail strike in the second half.”

“The settlement of contracts with China and India in July is expected to support demand in standard grade markets in the second half of 2024, while uptake on our summer fill program in North America has been strong,” the company said.

Nitrogen adjusted EBITDA decreased to $1.1 billion in the first half due to lower prices, which more than offset lower natural gas costs. The company narrowed its nitrogen sales volume guidance to 10.7-11.1 million mt based on expectations of higher operating rates at its North American and Trinidad plants and growth in sales of urea and UAN. Nutrien said its ammonia production increased in the first half, driven by improved reliability and less turnaround activity.

“Chinese urea export restrictions have been extended into the second half of 2024 and natural gas-related supply reductions could continue to impact nitrogen operating rates in Egypt and Trinidad,” the company said. “US nitrogen inventories were estimated to be below average levels entering the second half of 2024, contributing to strong engagement on our summer fill programs.”

Phosphate adjusted EBITDA decreased in the second quarter and first half primarily due to lower prices, partially offset by lower input costs. Phosphate sales volume guidance was lowered to 2.5-2.6 million mt reflecting extended turnaround activity and delayed mine equipment moves.

“Phosphate fertilizer prices are being supported by tight global supply due to Chinese export restrictions, low channel inventories in North America, and seasonal demand in Brazil and India,” Nutrien said. “We anticipate some impact on demand for phosphate fertilizer in the second half of 2024 as affordability levels have declined compared to potash and nitrogen.”

Nutrien said favorable growing conditions have created an expectation for record US corn and soybean yields and pressured crop prices. “Despite lower crop prices, demand for crop inputs in North America is expected to remain strong in the third quarter of 2024 as growers aim to maintain optimal plant health and yield potential,” the company said. “We anticipate that good affordability for potash and nitrogen will support fall application rates in 2024.”

Nutrien recognized a $195 million non-cash impairment of assets due to the company’s previously announced decision to halt its Geismar Clean Ammonia project (GM June 14, p. 1).

The company also highlighted is margin improvement plan in Brazil, which included the curtailment of three fertilizer blenders and the closure of 21 selling locations in the second quarter (GM May 31, p. 26). Nutrien recognized a $335 million non-cash impairment of its Retail-Brazil assets due to ongoing market instability and more moderate margin expectations, and incurred a loss on foreign currency derivatives of approximately $220 million in Brazil.

“In Brazil, we continue to see challenges and are accelerating a margin improvement plan that is focused on further reducing operating costs and rationalizing our footprint to optimize cash flow,” Seitz said.

Nutrien announced that its Board of Directors has declared a quarterly dividend of $0.54 per share payable on Oct. 18, 2024, to shareholders of record on Sept. 27, 2024.

CF Earnings Down on Lower Prices, Sales Volumes

Ammonia, Ammonium Nitrate, Asia, Brazil, China, Earnings, Europe, Featured, Natural Gas, Nitrogen, Russia, UAN, Urea

CF Industries Holdings Inc. reported second-quarter net earnings of $420 million ($2.30 per diluted share) and adjusted EBITDA of $752 million, down from $527 million ($2.70 per diluted share) and $857 million, respectively, in last year’s second quarter.

Net sales for the quarter were $1.57 billion, down from last year’s $1.78 billion but up from the average analyst estimate (Bloomberg Consensus) of $1.52 billion. CF cited lower average selling prices compared with last year, with lower ammonia, UAN, and ammonium nitrate sales volumes partially offset by higher urea volumes.

For the first half of 2024, net earnings were $614 million ($3.31 per diluted share) and adjusted EBITDA was $1.21 billion, down from $1.09 billion ($5.55 per diluted share) and $1.72 billion, respectively, in 2023. First-half net sales were $3.04 billion, down from $3.79 billion, while sales volumes were similar to the first half of 2023.

Cost of sales for the second quarter and first half were lower than last year due primarily to lower realized natural gas costs, partially offset by higher 1Q maintenance costs related to plant outages. The average natural gas cost was $1.90 per MMBtu in the second quarter and $2.53 per MMBtu in the first half, compared to $2.75 per MMBtu and $4.56 per MMBtu, respectively, in 2023.

Gross ammonia production for the first half and second quarter was approximately 4.8 million and 2.6 million tons, respectively, compared to 4.7 million and 2.4 million tons last year. The company expects gross ammonia production for the full year 2024 to be approximately 9.8 million tons.

Ammonia net sales for the quarter were $409 million, down 22% year-over-year and slightly under the average analyst estimate of $409.2 million. Ammonia sales volumes came in at 979,000 st, down 7% from last year but above the analyst estimate of 978,472 st, while the average ammonia selling price was $418/st, down 16% year-over-year and trailing the analyst estimate of $421.11/st.

Granular urea net sales for the quarter were $457 million, down slightly from $460 million last year but above the average analyst estimate of $398.8 million. Granular urea sales volumes were 1.25 million st, up 9.1% from last year and above the analyst estimate of 1.15 million st, while the average selling price of urea came in at $365/st for the quarter, down 9% from last year but above the analyst estimate of $346.88/st

UAN net sales were reported at $475 million for the quarter, down 13% from last year but above the $456.7 million average analyst estimate. UAN sales volumes came in at 1.75 million st, down 3.4% from last year and only slightly trailing the 1.76 million st analyst estimate, while the average UAN selling price was $272/st for the quarter, down 10% from last year but ahead of the analyst estimate of $259.31/st.

Ammonium nitrate (AN) net sales were $98 million for the quarter, down 5.8% from last year and trailing the analyst estimate of $109.8 million. AN sales volumes were 340,000 st, down 7.9% from last year and below the 378,766 st analyst estimate, while the average selling price was reported at $288/st, up 2.1% from last year but trailing the $289.47/st analyst estimate.

Capital expenditures in the second quarter and first half were $84 million and $182 million, respectively, and the company projects capital expenditures for the full year to be approximately $550 million.

CF repurchased 4.0 million shares for $305 million during the second quarter and 8.3 million shares for $652 million during the first half of 2024. On July 31, 2024, CF’s Board of Managers approved a semi-annual distribution payment to CHS Inc. of $165 million for the distribution period ended June 30, 2024. The distribution was paid on July 31, 2024.

CF said recent gas curtailments in Egypt and Trinidad, along with scheduled outages and urea export restrictions in China, have “supported global nitrogen pricing during a period of year that typically sees lower prices and low global shipments as demand shifts from the Northern Hemisphere to the Southern Hemisphere.”

CF said it believes nitrogen channel inventories in North America for all products are below average following strong urea and UAN demand this spring and higher-than-expected planted corn acres. It noted that UAN and ammonia fill programs “achieved prices above 2023 levels despite softening farm economics” due to falling corn and soybean prices.

CF said it believes urea consumption in Brazil in 2024 will be up 3% year-over-year, to more than 8.0 million mt, with urea imports to Brazil in the 7.0-8.0 million mt range this year. It anticipates an active urea import market into India during the second half of the year, with urea exports from China remaining limited.

The company said approximately 25% of ammonia and 30% of urea capacity in Europe was reported in shutdown/curtailment in early July 2024, with operating rates and overall domestic nitrogen product output expected to remain below historical averages over the long term, resulting in higher-than-average imports of ammonia and upgraded products into the region.

CF expects urea and ammonia exports from Russia to increase this year due to the start-up of new urea granular capacity and the completion of the country’s Taman port ammonia terminal in the second half of 2024.

“Over the medium-term, significant energy cost differentials between North American producers and high-cost producers in Europe and Asia are expected to persist,” CF said. “As a result, the company believes the global nitrogen cost curve will remain supportive of strong margin opportunities for low-cost North American producers.”

CF expects the global nitrogen supply-demand balance to tighten over the longer term, however, as global nitrogen capacity growth over the next four years fails to keep pace with expected global nitrogen demand growth of approximately 1.5% per year for traditional applications and new demand growth for clean energy applications.

CF highlighted several low-carbon strategic initiatives, and said it expects “greater clarity later in 2024 regarding demand for low-carbon ammonia, including the ammonia carbon intensity requirements of offtake partners as well as government incentives and regulatory developments in partners’ local jurisdictions.”

Intrepid Posts 2Q Loss on Lower Sales Volumes, Prices

Earnings, Featured, Potash, U.S.

Intrepid Potash Inc., Denver, Colo., reported a second-quarter net loss of $0.8 million ($0.06 per diluted share) on total sales of $62.1 million, down from income of $4.3 million ($0.33 per diluted share) and sales of $81 million in last year’s second quarter. Lower sales volumes and net realized prices were cited.

Adjusted EBITDA was $9.2 million for the quarter and $16.9 million for the first six months, down from $15.8 million and $32.2 million, respectively, in 2023. Total revenue came in at $62.05 million for the quarter and $141.3 million for the first six months, down from $81 million and $167.9 million, respectively, in 2023.

Potash and Trio® sales volumes for the quarter were reported at 55,000 st and 63,000 st, respectively, compared with 79,000 st and 63,000 st last year. Average net realized sales prices were $405/st for potash and $314/st for Trio®, down from $479/st and $333/st, respectively, in the second quarter of 2023.

“We sold fewer tons of potash in the second quarter of 2024 compared to the second quarter of 2023, as we had fewer tons of potash to sell due to lower potash production from our HB and Wendover facilities,” Intrepid said, noting the 30% drop in sales volumes and the 15% drop in net realized potash prices.

“Our strategic focus continues to be improving our potash production, and I’m happy to share that we saw the first indications of this in our second-quarter results,” said Matt Preston, Intrepid’s Chief Financial Officer and Acting Principal Executive Officer. “Improved brine grades at HB from the Eddy Cavern and good early-season evaporation rates allowed us to extend our spring production season, and we still expect our 2024 potash production to be approximately 15% higher than 2023.”

“As the broader potash market looks to be finding its midcycle pricing floor, we remain focused on improving our unit economics by means of higher potash production,” Preston added.

Trio® segment sales were down 8% from last year while Trio® sales volumes were flat year-over-year. Intrepid said improved potassium fertilizer supplies pressured Trio® prices, though cost of goods sold were down 18% in the quarter due to improved production rates and decreased total production costs. The company said it produced 68,000 st of Trio® during the quarter, up from 58,000 st last year.

“In Trio®, our sales volumes and production are well ahead of last year’s pace through the first six months of the year as increased operating rates from our new continuous miners and our modified operating schedule have driven significant improvement in both our total and per ton production costs,” Preston said. “Trio® segment gross margin of $2.2 million in the second quarter was an increase of approximately $3.3 million sequentially and $1 million year-over-year.”

Sales in the company’s oilfield solutions segment increased $0.4 million from last year, primarily due to a $0.2 million increase in brine water sales and a $0.3 million increase in other oilfield solution products and services. Intrepid noted increased water and brine water sales due to continued strong demand from oil and gas operators in the Permian Basin near Intrepid South.

As for operational updates, Intrepid said it completed a new extraction well project at is HB Solar Solution Mine in Carlsbad, N.M., in June, and the company expects to commission Phase Two upgrades at the mine in the third quarter, which includes an in-line pigging system to remove scaling and help ensure more consistent flow rates.

A new primary pond at the company’s Wendover, Utah, mine is expected to increase the brine evaporation area and improve production by the fall of 2025, and Intrepid said it continues to advance its lithium project at Wendover.

The company also said it now has all permits to begin construction and operation of its sand project at Intrepid South, but developments there have been paused due to “softening conditions in the oilfield services market.”

Gross margins for the quarter slipped to $7.6 million from $15.4 million, while cash flow from operations dipped to $27.7 million from $30.5 million. Capital expenditures were $11.3 million for the second quarter and $23.0 million for the first six months ended June 30, 2024. The company said it continues to expect full-year 2024 capital expenditures of $40-$50 million.

AdvanSix Income Improves on Higher AS Sales

Ammonium Sulfate, Earnings, News Briefs

AdvanSix posted second-quarter net income of $38.9 million on sales of $453.5 million, up from the year-ago $32.7 million and $427.9 million, respectively, citing a 5% increase in sales volume and a 1% increase in net pricing driven by higher sales of nylon and ammonium sulfate amid favorable North American supply and demand conditions. Adjusted EBITDA for the quarter was $78.1 million, up from $65.8 million.

“Our strong second-quarter results, featuring top and bottom line growth as well as year-over-year cash flow improvement, reflect our collective organization’s execution and the advantages of our business model and diverse product portfolio,” said Erin Kane, President and CEO of AdvanSix. “We realized a 6% improvement in sales reflecting higher domestic nylon sales volume, a robust domestic application season for ammonium sulfate, and continued strength in acetone pricing.”

Kane said the company delivered its “second-highest quarter of granular ammonium sulfate production ever” as plant output returned to targeted utilization rates after a first-quarter operational disruption (GM Jan. 19, p. 1). Second-quarter ammonium sulfate sales were $139.7 million, representing 31% of total company sales, versus the year-ago $138.9 million, or 32%.

AdvanSix said it anticipates higher ammonium sulfate pricing in the third quarter compared with last year, reflecting robust demand entering fall fill, though it noted that “typical North American ammonium sulfate seasonality” is expected to drive sequential pricing declines in the third quarter.

“While we anticipate typical North American ammonium sulfate seasonality, we are starting the third quarter with a strong fall fill program at higher pricing levels compared to the prior year,” Kane said. “Over the long-term, we continue to positively position the enterprise through high-return growth and cost savings programs, an improved portfolio mix, and disciplined capital deployment to fuel future earnings, cash flow performance and robust total shareholder returns.”

Cash flow from operations was reported at $50.2 million for the quarter, up $15.2 million from last year due to higher net income the favorable impact of changes in working capital, while capital expenditures were up $14.2 million, to $33.5 million, primarily due to maintenance and enterprise programs.

AdvanSix continues to expect capital expenditures of $140-$150 million in 2024 to address critical enterprise risk mitigation and growth projects, including the company’s SUSTAIN (Sustainable U.S. Sulfate to Accelerate Increased Nutrition) program. The company anticipates a pre-tax income impact of $38-$43 million in 2024 due to planned plant turnarounds.

The company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on the company’s common stock, payable on Aug. 27, 2024, to stockholders of record as of the close of business on Aug. 13, 2024.

Nutrien Ltd. – Management Brief

Management Briefs

Nutrien Ltd. on Aug. 7 announced the appointment of Mark Thompson as Executive Vice President and Chief Financial Officer, effective Aug. 26, 2024. Thompson succeeds Pedro Farah, who will remain with Nutrien in an advisory capacity until his departure on Dec.31, 2024.

Thompson currently serves as Executive Vice President and Chief Commercial Officer, and has been with Nutrien since 2011. He previously held numerous executive and senior leadership roles across the company, including Chief Strategy & Sustainability Officer, Chief Corporate Development & Strategy Officer, and Vice President of Business Development for Nutrien’s Retail business.

“Mark’s impressive track record of execution, along with his proven financial and strategic acumen provides the unique ability to succeed in this position on day one. He brings in-depth knowledge of our business that will support the advancement of our strategic actions to enhance quality of earnings and cash flow,” said Ken Seitz, Nutrien President and CEO. “On behalf of the Nutrien team, I would also like to thank Pedro for his service and commitment to Nutrien over the last five years.”

Negotiations Resume Between Railroads, Union

Canada, News Briefs

Labor negotiations resumed this week between the Teamsters Canada Rail Conference (TCRC) and Canadian National Railway Co. (CN) and Canadian Pacific Kansas City (CPKC) to avert a major railroad strike in Canada that could happen as early as next week. Negotiations between the union and railroads have been stalled for several months.

“The meetings were frank, constructive discussions that reflected the gravity of the situation before Canada’s railways, workforce, and entire economy,” said Labor Minister Steve MacKinnon in an Aug. 5 statement.

Christopher Monette, a spokesperson for TCRC, told Bloomberg that the goal was to increase “the pace and frequency” of discussions. “A work stoppage can be avoided, provided both companies are willing to return with fair and equitable proposals,” he wrote in an email. The union represents close to 10,000 workers at the two companies.

The railroads and TCRC are awaiting a decision by the Canadian Industrial Relations Board (CIRB), which is considering whether a strike would compromise safety and essential services. CIRB in July said it expects to make its ruling by Aug. 9 (GM July 19, p. 1), and no strike or lockout can take place until at least 72 hours after the decision.

Weather, Margins Impact The Andersons 2Q

Carbon, Earnings, News Briefs, U.S.

The Andersons Inc., Maumee, Ohio, reported second-quarter net income attributable to The Andersons of $36 million ($1.05 per diluted share), down from $55 million in last year’s second quarter. Adjusted net income came in at $39.5 million ($1.15 per diluted share), down from $51.8 million.

Adjusted EBITDA was $98 million for the quarter, down from $144 million last year. While adjusted pretax incomewas up in the company’s Trade segment, to $9.5 million from $7.2 million last year, results were down for the Renewables and Nutrien & Industrial segments.

“Overall, our second-quarter results were consistent with our expectations given the shift in ag markets over the past several months,” said Chairman and CEO Pat Bowe. “Renewables had a very solid quarter with increased ethanol production and higher margins but didn’t match last year’s results on declining co-product values. Trade results were slightly improved from last year despite lower prices and volatility.”

“Nutrient & Industrial had solid results although well behind last year’s outsized performance given weather-related delays and lower margins,” Bowe continued. “Farmer selling remains relatively quiet with adequate supply in this low-price commodity environment. We are seeing the benefits of our portfolio mix with grain assets and our growing premium ingredients business helping to offset a reduction in merchandising opportunities.”

The Nutrient & Industrial segment reported pretax income of $23 million for the quarter, down sharply from last year’s $43 million, with EBITDA falling to $32 million from $52 million. The company said volumes were negatively impacted by a late and wet spring application season, while declining nutrient prices failed to provide the “margin opportunities” seen in previous years.

“Also impacting the year-over-year comparison was a 2023 second quarter that had a significant shift of income from Q1 into Q2,” the company said. “The engineered granules business saw improvement in the quarter on higher sales volume. Looking forward, second half agronomy sales and applications are dependent on the timing of harvest and grower’s overall profitability.”

The Renewables segment reported second-quarter pretax income of $39 million and adjusted pretax income attributable to the company of $23 million, down from last year’s $67 million and $32 million, respectively.  Renewables posted second-quarter EBITDA of $52 million down from $74 million in 2023.

The company highlighted its announcement in June to acquire an ownership interest in Skyland Grain LLC, with grain and agronomy assets across Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles.

“We are devoting significant resources to this opportunity and expect to provide an update later in the third quarter,” Bowe said. “Our longer-term Renewables projects are moving forward, and we are focused on lowering the carbon intensity of our ethanol plants. We continue to manage a robust pipeline with meaningful growth opportunities in each of our businesses.”

OCI Reports Lower 2Q Revenues, EBITDA

Europe, Low-Carbon, Middle East, Natural Gas, News Briefs, Nitrogen, Texas

OCI reported second-quarter 2024 revenues of $1.2 billion and EBITDA of $295 million, down 12% and 9%, respectively, from last year due to lower nitrogen prices globally, higher gas prices in the Middle East, and planned maintenance at Natgasoline.

The nitrogen major highlighted its strong operational performance, boasting a 90% asset utilization rate at its Beaumont and OCI Nitrogen facilities. Additional tailwinds in the amount of $22 million stemmed from lower natural gas prices globally.

“Following extremely challenging market conditions in 2023, conflated with prolonged turnarounds at some of OCI’s assets, OCI benefited in the second quarter of 2024 from sustained improved asset reliability across the business,” said OCI CEO Ahmed El-Hoshy. “OCI’s manufacturing excellence program and investments to improve reliability continue to drive productivity gains, with asset utilization rates surpassing historical levels across both the nitrogen and methanol complex.”

OCI highlighted its recent European product portfolio expansion with AdBlue, CAN+Sulphur, as well as bio-melamine. OCI also announced the sale of its Beaumont Texas low-carbon facility to Australian energy major Woodside. No updates on the closing of the IFCo and Fertiglobe sales were provided.

SABIC Posts 2Q Profit of $0.58 Billion

News Briefs

SABIC reported second-quarter net profit of SAR2.18 billion ($0.58 billion), representing an 85% year-over-year increase. EBITDA rose 37%, to SR4.88 billion, fueled by higher sales volume and average selling prices.

“The significant rise in profits is attributed to better product margins and increased sales volumes, along with effective management of supply chain challenges in the region,” said SABIC CEO Abdulrahman Al-Fageeh. “This reflects our resilience, innovation, and ability to adapt under the prevailing challenging circumstances and meet the demands of our customers worldwide.”

SABIC Agri-Nutrients (formerly SAFCO) reported net income of SAR705 million ($188 million) for the quarter, up 8% from last year, with total sales reported at SAR2.7 billion ($0.7 billion), up 2% from 2023.

Average sales prices were down 4% from last year while sales volumes were up 6%. Compared with the first quarter, sales prices were down 15% and sales volume were up 25%, resulting in a 6% increase in revenue. Agri-Nutrients’ net profits fell 5% in the first half due to lower average selling prices.

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