JOHANNESBURG (miningweekly.com) – German potash and salt producer K+S on Wednesday reaffirmed its earnings forecast for the full year, as it posted higher third-quarter revenue and earnings.
The Kassel-headquartered company, which has production sites in Europe, North America and South America, increased its revenue by 6% year-on-year to €726.5-million and its earnings before interest, taxes, depreciation and amortisation (Ebitda) by 37% year-on-year to €76.7-million.
Operating earnings (Ebit I) improved to €12-million, from a loss of €31-million in the prior-year period. According to newswire Reuters, analysts had expected an average of €17-million.
Adjusted after-tax earnings increased from a loss of €27.4-million in the September 2016 quarter to a profit of €1.5-million in the three months under review.
Improved product availability, especially of fertiliser specialities, along with higher average prices for potash and magnesium products had helped to improve third-quarter revenue and earnings, the company reported.
However, chairperson Dr Burkhard Lohr said in a media statement that 2017 would remain a “transitional year” and that K+S had not yet fully exploited its strengths.
The mining group has reiterated its forecast of higher earnings in 2017, based on expectations of “tangibly” higher sales volumes of the potash and magnesium products business unit at 6.8-million to 7-million tonnes, compared with 6.1-million tonnes in 2016. Ebitda is forecast to increase to between €560-million and €660-million, from €519-million in 2016, while Ebit I is forecast in the range of €260-million to €360-million, from €229-million in 2016.
Meanwhile, K&S reported that it had adjusted the ramp-up curve at its new $4.6-billion Bethune potash mine, in southern Saskatchewan, Canada. The mine would produce 500 000 t this year, rather than the originally intended 600 000 t to 700 000 t.
Initial shipments from Bethune, which would produce two-million tonnes a year at full capacity, started in the third quarter. The first large rail shipment left the mine in late September and the first 30 000 t of potash fertiliser departed the Pacific port of Vancouver in late October.