MOS - Mosaic Q2 profit revenues tumble on lower selling prices
2023-08-01 17:55:47 ET
Mosaic ( NYSE: MOS ) -0.8% post-market Tuesday after missing estimates for Q2 adjusted earnings while revenues slumped 37% Y/Y to $3.4B, reflecting the impact of lower fertilizer prices.
Q2 net income fell to $369M, or $1.11/share, from $1.04B, or $2.85/share, in the year-earlier quarter, adjusted EBITDA dropped to $744M from $2B in the same period last year, and free cash flow plunged to $197M from $794M a year ago.
Q2 potash net sales dropped to $849M from $1.6B in last year's Q2, as sales volume slipped to 2.2M metric tons from 2.3M tons reflecting idled production at the Colonsay mine in Saskatchewan, and the average MOP selling price fell by half to $326/ton from $678/ton.
Q2 phosphate net sales declined to $1.3B from $1.8B a year earlier, as sales volumes rose to 1.9M metric tons from 1.7M metric tons but the average DAP selling price fell to $585/ton from $920/ton a year earlier.
Q2 Mosaic Fertilizantes net sales were $1.4B, down from $2.3B a year ago, with sales volumes rising to 2.4M tons from 2.3M tons but the average finished product selling price falling to $595/ton from $974/ton.
Mosaic ( MOS ) said it restarted the Colonsay mine in July to ease the short-term impact of lower potash production related to planned summer maintenance at the Esterhazy mine and help manage inventory levels.
The company forecasts Q3 potash sales volumes of 2.1M-2.3M metric tons with MOP prices of $250-$300/ton, phosphate sales volumes of 1.7M-1.9M metric tons with DAP prices of $475-$525/ton
Mosaic ( MOS ) said it expects grain and oilseed markets will remain tight through 2023 and beyond, citing the disruption to Ukraine's production, coupled with reduced fertilization and sub-optimal weather in major growing regions.
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Mosaic Q2 profit, revenues tumble on lower selling prices