Sherritt 2Q fertilizer sales up 30 percent

Toronto—Sherritt International Corp., citing higher prices, reported a 30 percent increase in fertilizer sales for the second quarter ending June 30, 2012, to C$43.7 million from the year-ago $33.6 million. Fertilizer sales volumes were up only 1 percent, to 71,294 mt from the year-ago 70,651 mt. Production saw a healthier increase, to 67,764 mt, up from 55,593 mt. Cost of sales were down 26 percent, to $18.1 million from $24.4 million. Company-wide, Sherritt reported an average natural gas cost of $1.93/mmBtu, down from the year-ago $3.76/mmBtu. Sulfur prices were up at $260.08/mt from $242.49/mt, while sulfuric acid prices were down at $183.19/mt from $196.68/mt. Six-month fertilizer sales were up 40 percent, to $58.7 million from the year-ago $41.8 million. Sales volumes were up 11 percent to 97,921 mt, up from 88,345 mt, while production was 133,885 mt, up from 115,166 mt. The company attributed the increased volumes to better field conditions, as the year-ago period saw a late spring due to heavy snowfall. Cost of sales were down 15 percent, to $27.6 million from $32.3 million. Company-wide gas costs were $2.05/mmBtu, down from $3.73/mmBtu. Sulfur and sulfuric acid prices were up at $267.42/mt and $190.42/mt, respectively, from the year-ago $221.14/mt and $185.98/mt. In the meantime, Sherritt’s Coal segment reported a 21 percent drop in second-quarter potash royalties, to $4.1 million from $5.2 million. Six-month royalties were off 32 percent, to $6.8 million from $10 million. Company-wide, Sherritt second-quarter net earnings were off, with the company citing lower nickel prices, lower export coal volumes, higher depreciation, and net finance expense. Earnings were $40.8 million ($0.14 per diluted share) on sales of $487.9 million, down from $60.1 million ($0.20 per share) on sales of $500.6 million. Six-month earnings were $73.1 million ($0.25 per share) on sales of $950.1 million, down from the year-ago $123.7 million ($0.42 per share) and sales of $975.1 million.