Potash Corp, the second-biggest potash producer by output after Russia’s Uralkali OAO, said it expects to sell 9.0-9.2 million tonnes of potash in the current year.
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“Despite challenges over recent months, we are seeing signs of a shift in focus by distributors and farmers to 2016”, PotashCorp chief executive Jochen Tilk said in a statement.
“We believe the need for increased global agricultural production – coupled with supportive crop prices – provides a compelling opportunity for farmers”, Tilk said.
Potash Corp of Saskatchewan said on Thursday it would cut production and trim its full-year earnings and sales forecasts, as volatile currencies and economic pressures weigh on demand for the crop nutrient potash.
The company said Thursday net income in the third quarter fell to $282 million, or 34 cents per share, from $317 million, or 38 cents per share. Analysts expect annual earnings of $1.73 per share.
Let’s have a quick look at the company’s third-quarter release.
Picadilly is expected to produce up to 1.8 million tonnes of potash when it is fully operational.
Cash from operating activities of $358 million in the third quarter and $1.7 billion for the first nine months of 2015 were below last year’s comparable totals of $574 million and $1.9 billion, respectively.
Excluding non-cash charges, it earned 37 cents per share. The company has a market cap of $17.51 billion. Supply, meanwhile, remains very high.
Nitrogen realized prices also fell, but the decline was less pronounced than in potash’s case.
At the same time, Potash Corp. lowered its shipments guidance for both China and India.
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Nonetheless, Potash Corp. remained relatively upbeat about the market going forward. Increased Chinese exports and weaker demand in Latin America more than offset stronger Indian demand and resulted in relatively flat pricing. This translates into $313.41M profit for POT giving the stock a 13.97 P/E. Of course only in case the $0.38 EPS is accurate.
