Global fertilizer corporation and largest producer of finished phosphate products, The Mosaic Co. has announced its 2Q17 results, with net income of US$97 million in the quarter, compared to a net loss of US$10 million in 2Q16. The company reported higher net sales volumes, at US$1.75 billion this quarter, up from US$1.67 billion in 2Q16.
Operating earnings during the quarter were US$95 million, up from US$12 million a year ago. This was driven by higher phosphate and potash sales volumes, higher potash and international distribution segment margins, partially offset by lower phosphate margins.
“Mosaic generated improving results during 2Q17 as global demand for potash and phosphates remained strong,” said Joc O'Rourke, President and CEO of Mosaic. “We continue to focus on managing our margins, costs and capital as markets gradually improve.”
After a tough 2016, the company has experienced “positive developments” in the phosphates industry, according to O'Rourke. Chinese exports in 1H17 higher than estimated, which has helped the company. However, the region is still expected to export fewer tonnes of phosphates compared to last year.
Higher sales volumes offset lower phosphates realised prices. However, according to Reuters, Mosaic Co.’s shares dipped by as much as 9% after it forecasted slower phosphate sales of 2.2 - 2.5 million t in 3Q17, down from 2.6 million t in the 2Q17, and weaker prices.
Read the article online at: https://www.worldfertilizer.com/phosphates/02082017/mosaic-co-reports-2q17-results/