K+S confirms 2024 forecast as potash prices stabilise (updated)
13/05/2024 09:19
(Adds 2024 outlook in paragraphs 4, 7, CEO comments in
paragraphs 5, 6, share reaction in paragraph 10)
By Tristan Veyet and Matteo Allievi
May 13 (Reuters) - German potash and salt miner K+S
SDFGn.DE confirmed its quarterly core profit beat and 2024
guidance on Monday, as it benefits from a strong performances in
its European speciality and industry businesses.
Prices of potash, used for fertilisers in the agricultural
industry, have started to recover and stabilise following a
period of volatility due to Russia's invasion of Ukraine that
hurt the margins of potash miners.
Hessian-based K+S reported first-quarter earnings before
interest, tax, depreciation and amortisation of 200 million
euros ($215 million), in line with its consensus-beating
preliminary announcement at the end of April.
The company reaffirmed its annual guidance for an EBITDA of
between 500 million and 650 million euros, with an adjusted free
cash flow at break-even.
"Our strong European business with a high share of
fertilizer specialties has provided a successful start into the
financial year," CEO Burkhard Lohr said in an interview
published alongside the results.
This has increased the probability that annual EBITDA will
be above the lower end of the 2024 guidance range, Lohr added.
K+S also said it expects no oversupply in the potash market
this year.
The upbeat results echo those of Toronto-listed fertiliser
group Nutrien NTR.TO , whose core profit was fuelled by strong
demand for crop nutrients from North America.
However, they come in contrast with U.S.-based Mosaic
MOS.N and Norway's Yara YAR.OL , which both said lower prices
were weighing down on their earnings.
Shares in K+S were down 1% at 0811 GMT.
($1 = 0.9286 euros)
(Reporting by Tristan Veyet and Matteo Allievi in Gdansk;
Editing by Janane Venkatraman and Milla Nissi)
((Tristan.Chabba@thomsonreuters.com;))