K+S anticipates rise in core profit in 2021
Published by Nicholas Woodroof,
The salt and potash fertilizer supplier saw earnings before interest, taxes, depreciation and amortisation (EBITDA) of €440-€540 million (US$523-US$642 million) this year.
That compares with the €266.9 million posted for 2020, which beat analysts’ forecast of €246 million in a company-provided poll.
The group said its 2021 guidance included an expected one-off gain from the contribution of assets to the REKS joint venture of around €200 million, which is set to be generated on closing of the transaction in the summer.
K+S said the impairment loss on assets in the Europe+ operating unit, caused by lower long-term potash price expectations and a higher cost of capital rate, amounted to €1.86 billion, around €140 million lower than the figure it had announced in November.
The company said its auditor had confirmed the impairment loss, which is being examined by Germany’s Audit Office for Accounting (DPR), should not have been recognised earlier.
In February, K+S said the DPR was examining its financial reports after financial watchdog BaFin found impairment requirements in the reports for 2019 and the first half of 2020 may not have been determined correctly.
Read the article online at: https://www.worldfertilizer.com/potash/10032021/ks-anticipates-rise-in-core-profit-in-2021/
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