kusadasi schreef op 6 augustus 2019 12:31:
The Mosaic Company Reports Second Quarter 2019 Results
Business Wire•August 6, 2019
PLYMOUTH, Minn.--(BUSINESS WIRE)--
ANNOUNCES BRAZILIAN DAM REMEDIATION AHEAD OF SCHEDULE AND TEMPORARY IDLING OF COLONSAY POTASH MINE
Unprecedented North American spring weather expected to drive strong nutrient demand in fall 2019 and beyond
The Mosaic Company (MOS) today announced that the unprecedented wet weather in the Midwest United States has negatively impacted its North American spring fertilizer sales volumes and phosphates margins. These same factors have driven grain prices higher and provide significant opportunities in fall 2019 and beyond.
“We’ve experienced a North American spring season that was wetter and later than any in recorded history,” said Mosaic President and CEO Joc O’Rourke. “While our Potash and Mosaic Fertilizantes businesses continued to perform well, weakness in the phosphates market negatively impacted second quarter results. Moving forward, strong price increases in grains together with depleted soil nutrients in North America are expected to drive fertilizer applications significantly higher this fall.
“The actions we’ve taken to reshape our business, including the permanent closure of our Plant City phosphates facility and the acceleration of the development of the K3 potash mine leading to today’s announced curtailment of potash production at Colonsay, are expected to increase our operating leverage to the anticipated strong market fundamentals in the second half of 2019 and beyond."
Mosaic reported a net loss of $233 million for the second quarter of 2019, including a $284 million noncash after-tax charge for the permanent closure of the company’s Plant City phosphate facility. The company reported diluted earnings per share (EPS) of negative $0.60, which includes a negative $0.72 per share impact for notable items, primarily the closure of the Plant City facility. For the period, adjusted EBITDA(1) was $349 million, and adjusted EPS(1) was $0.12.
Highlights:
Mosaic Fertilizantes plans to complete tailings dam remediation activities and return to full operations more than a month ahead of schedule:
The Catalão mine tailings dam remediation was completed, and the mine resumed full operations in May.
The Tapira mine resumed operations at 60 percent in July, and is expected to resume full operations in August.
The Araxá mine received an operating permit for tailings dam B6, and is expected to resume full operations in August.
The company expects Mosaic Fertilizantes to achieve its targeted $275 million in net synergies in 2019, despite challenges related to the new Brazilian tailings dam regulation.
The Potash segment delivered gross margin per tonne of $84 as cash costs per tonne declined sequentially, despite a lower operating rate as a result of slower sales in the quarter.
The accelerated ramp up of the low-cost Esterhazy K3 potash project is on schedule, having produced over 400,000 tonnes of ore year-to-date June 30, 2019. This production, combined with available inventory, facilitated the temporary idling of the higher cost Colonsay potash mine. These actions are expected to lower Mosaic’s cost of production, accelerate inventory depletion, avoid $40 to $50 million in cash expenditures in 2019, and increase the company’s leverage to strengthening markets into 2020.
In June, the company announced the permanent closure of the Plant City phosphates facility. The closure will result in lower idle plant costs and cash expenditures to be incurred for the care of the facility.
The company revised its full-year adjusted EBITDA(1) guidance to $1.8 to $2.0 billion. Mosaic announced adjusted EPS(1) guidance of $1.10 to $1.50, primarily reflecting the impact of lower than expected sales volumes in the first half of 2019 and a slower recovery of phosphates margins.
Cash flow from operating activities in the second quarter of 2019 was $507 million. The company continues to expect cash flow generation to strengthen in the second half of the year, in line with expected adjusted EBITDA(1) guidance.
Capital expenditures totaled $295 million in the quarter. Mosaic’s total cash and cash equivalents, excluding restricted cash, were $402 million compared with $848 million at year end 2018, largely due to the weather’s impact on sales and resulting increase in the company’s inventories. Long-term debt was $4.6 billion as of June 30, 2019.