http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.89Change: -0.01
R/$ = 12.56Change: 0.01
Au 1097.15 $/ozChange: 1.80
Pt 988.50 $/ozChange: 5.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 04, 2009

Foskor FY profit doubles on strong commodity prices

Back
PROJECT|Sustainable|Product|Products
PROJECT|Sustainable|Products
project|sustainable|product|products
© Reuse this



South African phosphate rock and phosphoric acid producer Foskor’s net profit increased by 128% to R1,9-billion in the 2009 financial year, compared with R841-million the year before, driven by strong commodity prices.

“Foskor’s renewed focus on fiscal and managerial discipline yielded great returns in the past financial year and were further boosted by strong commodity prices throughout most of 2008,” CEO Alfred Pitse said in a statement on Tuesday.

He noted that phosphoric acid prices had, in the year ended March 31, 2009, almost doubled from the start of the financial year, peaking at about $2 200/t in August 2008.

However, this was an unprecedented price, which would not likely be repeated in future, said Pitse.

Further, he noted that the company had seen buoyant demand for monoammonium phosphates and diammonium phosphates on the back of global demand for crops as inventory levels reached historical lows.

Foskor produced 2,41-billion tons of phosphate rock in 2009, a 1,38% increase on the 2,38-billion tons produced the year before.

However, rock sales prices increased by 161% year-on-year, with an average price of $188/t in 2009, compared with $72/t in 2008.

Phosphoric acid production volumes were down nearly 5% to 659 000 t in 2009, compared with 692 000 t in 2008. The average phosphoric acid price had, however, increased by 148% to $1 505/t, compared with $607/t the year before.

Foskor’s revenues increased by 163% to R10,2-billion in the year ended March 31, 2009, compared with R3,87-billion the year before.

“Although Foskor’s revenues and profitability were enhanced by higher commodity prices, the costs of raw materials such as sulphur and ammonia also increased exponentially. Foskor was, however, able to counter some of the input cost increases as it is one of the few vertically integrated companies in the world,” stated Foskor CFO Theuns Koekemoer.

Meanwhile, the producer said that its pyroxenite expansion project phase one (PEP 1) was in progress.

PEP 1 would be completed at a cost of R550-million and would raise Foskor’s phosphate rock concentrate production to 2,65-million tons a year, up 150 000 t/y on its current production.

The second phase, called PEP 2, was expected to be commissioned by 2011 at a cost of about R652-million. This would lead to an increase in capacity of about 200 000 t/y.

Further, Foskor was also conducting feasibility studies to broaden its product range away from conventional fertiliser as part of its growth strategy.

Meanwhile, Pitse noted that the business cycle for the producer had “turned sharply within a very short space of time”, following the end of its financial year.

“We are concerned about the impact that the global recession and financial crisis will have on our bottom line in the next financial year,” he warned.

However, as there would always be demand for food, and thus fertiliser, the producer was still reaching sales volumes that enables it to retain its employees.

“We will also continue to market our noncore products and raise operational efficiencies consistently to ensure that Foskor remains a sustainable business for the benefit of all its stakeholders,” he concluded.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Chemicals News
The South African Nuclear Energy Corporation’s (Necsa’s) subsidiary company NTP Radioisotopes has, in conjunction with the Steve Biko Academic Hospital/University of Pretoria and Germany’s ITG Isotopes Technologies Garching, undertaken a new anti-cancer procedure in...
AECI CEO Mark Dytor
Explosives and specialty chemicals company AECI’s R400-million bulk property sale, in Somerset West, paired with a maintained market share, despite a difficult environment, pushed its headline earnings for the six months to June 30, up 45% to R632-million, compared...
Explosives and specialty chemicals group AECI expects the R400-million in revenue it earned through the recent bulk sale of land in Somerset West to the City of Cape Town to bolster its headline earnings per share (HEPS) for the half-year ended June 30 by up to 47%...
More
 
 
Latest News
Updated 44 minutes ago This eight-page brief covers key developments in South Africa’s water sector over the past 12 months. It provides details of the state of South Africa’s water sector, planning and regulation, infrastructure, nonrevenue water and water-quality issues, as well as...
Transnet National Ports Authority CIO Mmutle Lentle
State-owned enterprise Transnet National Ports Authority’s (TNPA’s) new Web-based integrated port management system (IPMS) went live on July 26 at the Port of Durban, with crude oil tanker Colorado being the first vessel to be brought into the port using the new...
South Africa’s automotive industry is not in crisis – but there is a very real danger that inertia could see it regress into lightweight assembly rather than claim its place as a globally competitive vehicle manufacturer. Speaking at the National Localisation Indaba,...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Meyerton-based steel tank manufacturer Structa Technology is currently rolling out a water infrastructure build programme that supports local municipalities, water utilities, schools, hospitals and clinics. As a member of the Structa Group, Structa Technology proudly...
Alternative funding models could be expected to begin coming to the fore in South Africa’s renewable-energy sector as the market becomes more competitive and domestic development finance institutions (DFIs) begin scaling back their direct involvement in projects....
DIMITRI MARKOULIDES An innovation champion must involve employees in innovation projects and keep them updated to enable them to support and drive innovation and create the future of the business
An innovation champion course that trains executives to manage innovation in their organisations aims to help companies grow revenue streams and tap new markets, says business change management consultancy BMGI South Africa innovation practice lead Dimitri...
Future digital workplaces will require employees to continuously learn new “literacies”, including new media, information and technical skills, to help their company thrive and spur personal growth. Information technology (IT) research firm Gartner, thus, suggests...
Only 25% of large construction projects surveyed in KPMG’s Global Construction Project Owner’s Survey, released in June, were concluded on time and within budget over the last three years. “Every project owner wants predictability when it comes to large projects, and...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96