Toronto — Fertilizer was a bright spot for Sherritt International Corp. for the third quarter ending Sept. 30, 2012. Third-quarter fertilizer volumes were up 36 percent, to 20,451 mt from the year-ago 15,055 mt, while revenues were up 28 percent to C$12.2 million from $9.5 million. Cost of sales was down slightly, to $6.6 million from $6.7 million. Production was 67,065 mt, up from 58,083 mt. Potash royalties were down at $3 million from $4.8 million. The average natural gas price dropped during the quarter to $2.27/mmBtu from the year-ago $3.45/mmBtu, as did sulfuric acid – $184/mt versus $192/mt – while the average sulfur price was up slightly, to $263/mt from $261/mt. Company-wide net income was a negative C$22.6 million ($0.08 per diluted share) on sales of $422.2 million, compared to the year-ago positive $45.5 million ($0.15 per share) on sales of $466.4 million. EBITDA dropped to $17.2 million from $44.4 million. Sherritt cited lower nickel prices and volumes, and lower coal export volumes. Nine-month fertilizer volumes were up 14.5 percent, to 118,372 mt from 103,400 mt, while sales were up 38 percent, to $70.9 million from $51.3 million. Cost of sales declined 12 percent, to $34.2 million from $39 million. Production was 200,950 mt, up from 173,249 mt. Potash royalties dropped to $9.8 million from $14.8 million. The average natural gas price was $2.13/mmBtu for the first nine months, down from the year-ago $3.64/mmBtu. Sulfuric acid prices were level at $188/mt, while sulfur was up at $266/mt from $235/mt. Sherritt-wide nine-month earnings were $50.5 million ($0.17 per share) on sales of $1.37 billion, down from the year-ago $169.2 million ($0.57 per share) on sales of $1.44 billion. EBITDA was $95.9 million, down from $164.7 million.
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