PotashCorp announces preliminary FY2016 earnings
Published by Angharad Lock,
Digital Assistant Editor
PotashCorp has announced the company’s preliminary FY2016 earnings, with highlights including:
- 4Q earnings of $0.07 per share; full-year total of $0.40/share.
- Annual cash provided by operating activities of $1.3 billion.
- Record second-half Canpotex shipments in 2016; fully committed for 1Q17.
- Initiated Rocanville ramp-up; expect company-wide potash cost of goods sold to decline by approximately $10/t in 2017.
- FY2017 guidance of $0.35 - $0.55/share, including merger-related costs of $0.05/share.
- Currently undergoing an impairment assessment of the carrying value of certain assets, with a particular focus on phosphate; the impact of that review is not reflected in the preliminary results.
“Strong customer engagement and positive potash pricing trends from the second half of 2016 are expected to carry into the new year,” said PotashCorp President and Chief Executive Officer, Jochen Tilk. “Supported by healthy underlying consumption, lower global inventories and with Canpotex fully committed for the first quarter of 2017, we see a continued potash recovery. Balancing this constructive market view is a more cautious second-half outlook for our nitrogen earnings and expected challenges for our phosphate results.
“We continue to proactively position the company for opportunity and resiliency in any market conditions. Our multi-year potash expansion program was completed in 2016 and we are now in the process of ramping up Rocanville, our lowest cost operation. Consistent with our long-held strategy, we have aligned our operating capability with expected market conditions. This includes operational changes recently initiated at Cory – as well as the previously announced suspension of operations in New Brunswick – to optimise production to our lowest cost facilities.
“Our work on the merger of equals with Agrium continues. The regulatory review and integration processes are advancing, and we expect the transaction will close mid-2017. Our Board and management team look forward to the opportunity to deliver significant value for our shareholders through this transaction, including up to $500 million of annual operating synergies,” said Tilk.
Read the article online at: https://www.worldfertilizer.com/potash/26012017/potashcorp-announces-preliminary-fy2016-earnings/
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