Mosaic Sets Phosphates Volume Shipping Record

The Mosaic Co of Plymouth, MN has reported fourth quarter net earnings of US$129 million on net sales of US$2.2 billion compared with US$616 million on sales of US$2.4 billion in the same quarter of 2012. For the full year, the company generated a net income of US$1.1 billion on net sales of US$9.0 billion versus US$1.9 billion on sales of US$10.0 billion in 2012. Jim Propanko, Mosaic’s CEO, said, “While our results for the fourth quarter reflect the low market prices for potash and phosphates, current market conditions are improving. Market dynamics are unfolding as we expected they would, with sales volumes increasing before prices; in fact, we shipped a record volume of phosphates during the quarter, and potash volumes increased significantly.” Fourth quarter net sales in Mosaic’s Potash segment totaled US$652 million in the latest quarter down from US$726 million. Higher volume sales of 1.9 million tonnes were more than offset by 30% decline in average realized price to US$303/tonne. Potash production was 1.7 million tonnes, down from 1.8 million tonnes a year ago. Mosaic’s Phosphates segment generated fourth quarter net sales of US$1.6 billion, down 6% from the prior year period, as higher sales volumes were more than offset by lower finished product prices. Sales volume in the quarter increased 21% in the quarter to 3.4 million tonnes while the average realized price decreased from US$532/tonne to US$381/tonne Agrium Inc of Calgary, AB reported fourth quarter 2013 Potash sales of US$107 million compared with US$153 million in the same period of 2012. The decline reflects a decrease of over 30% in average selling price to US$313/tonne and a 1% increase in sales volume to 344,000 tonnes. Potash prices came under pressure due to weaker demand from India, delayed negotiations for second half Chinese supply contracts and uncertainty created by the breakup of the Belarusian Potash Co. Agrium’s Phosphate business reported fourth quarter sales of US$159 million versus US$201 million in the prior year period with a 2% increase in sales volume, to 285,000 tonnes more than offset by a 22% decrease in average selling price to US$560/tonne. The cost of product sold increased from US$556/tonne to US$576/tonne reflecting the higher cost of imported rock following the closure of the company’’s mine in Kapuskasing, ON in the second quarter of 2013.

Volume 28 issue 5

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