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Released February 12, 2015 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite improved sales volumes for phosphates and potash, leading miner and fertilizer producer The Mosaic Company (NYSE:MOS) (Plymouth, Minnesota) saw mostly flat revenues and profits in 2014 when compared with 2013. The stronger sales, along with lower operating costs for potash, were negated by weak realized prices for potash. Net earnings were reported to be $1.02 billion for 2014, a 3.23% decrease from 2013.
Industrial Info is tracking $5.5 billion in active projects involving Mosaic, including the $150 million expansion of an ammonia unit at the Faustina fertilizer facility in Saint James, Louisiana. The project involves rebuilding and improving the existing reformer, and replacing and debottlenecking the processing equipment to boost capacity from 1,500 tons to an estimated 1,800 tons per day of ammonia. KBR Incorporated (NYSE:KBR) (Houston, Texas) is performing turnkey services on the project, which is set to kick off in the fourth quarter.
Net sales stood at $9.06 billion, an increase of less than 1% when compared with 2013. Mosaic executives expect the coming spring application season in North America to be strong, and attributed the narrow sales gains to demand from customers seeking to replenish empty inventories. The Phosphates segment benefited from higher realized prices and lower costs for raw materials, particularly phosphate rock, although costs for ammonia and sulfur increased. The Potash segment benefited from lower operating costs and higher shipments.
When including investments in Wa'ad Al Shamal Phosphate Company (also known as the Ma'aden joint venture), capital expenditures totaled $1.1 billion in full-year 2014 and $254 million in the fourth quarter alone, compared with $1.43 billion in full-year 2013 and $352.6 million in fourth-quarter 2013. Mosaic also completed its $1.2 billion purchase and integration of CF Industries Incorporated's (NYSE:CF) (Deerfield, Illinois) phosphate assets.
"A year ago, on our fourth quarter 2013 earnings call, I said the following: We're starting to see some rays of sunlight at the end of this tunnel, and Mosaic is well positioned for the daylight to come," said James T. Prokopanko, the chief executive officer, president and director of Mosaic, in a conference call. "Well, our predictions don't always come true, but in this case, it's very gratifying to be proven right. The sunlight was real and Mosaic was, and is, in an excellent position to benefit in better parts of the business cycle."
He added: "Robust demand for our products and good execution were the primary drivers of our earnings, and we expect global demand to remain strong in 2015."
Mosaic executives expect capital expenditures and investments for full-year 2015 to total between $1.1 billion and $1.4 billion. Total sales volumes for the Phosphates segment are expected to range from 2.8 million to 3.1 million tonnes for the first quarter, compared with 2.7 million in the same period last year, with higher prices and lower raw material costs; sales volumes for the Potash segment are expected to total 2 million to 2.3 million tonnes, down from 2.4 million in first-quarter 2014, although demand is expected to be strong and Canadian production less expensive.
"The ADM distribution acquisition in Brazil and Paraguay closed toward the end of the year, and integration work is proceeding well," Prokopanko said in the conference call. "We are now a major player in South America, with the capacity to distribute 6 million tons of product."
He added: "We continue to be on track for the first phase of our Esterhazy K3 project, which is expected to begin delivering tonnes in 2017. The board [of directors] has approved the modification of the original scope to accelerate the second phase of K3 development. The accelerated construction plan will move up the time frame when could execute the option to replace underground operations at K1 and K2, and thus entirely eliminate brine management costs."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking $5.5 billion in active projects involving Mosaic, including the $150 million expansion of an ammonia unit at the Faustina fertilizer facility in Saint James, Louisiana. The project involves rebuilding and improving the existing reformer, and replacing and debottlenecking the processing equipment to boost capacity from 1,500 tons to an estimated 1,800 tons per day of ammonia. KBR Incorporated (NYSE:KBR) (Houston, Texas) is performing turnkey services on the project, which is set to kick off in the fourth quarter.
Net sales stood at $9.06 billion, an increase of less than 1% when compared with 2013. Mosaic executives expect the coming spring application season in North America to be strong, and attributed the narrow sales gains to demand from customers seeking to replenish empty inventories. The Phosphates segment benefited from higher realized prices and lower costs for raw materials, particularly phosphate rock, although costs for ammonia and sulfur increased. The Potash segment benefited from lower operating costs and higher shipments.
When including investments in Wa'ad Al Shamal Phosphate Company (also known as the Ma'aden joint venture), capital expenditures totaled $1.1 billion in full-year 2014 and $254 million in the fourth quarter alone, compared with $1.43 billion in full-year 2013 and $352.6 million in fourth-quarter 2013. Mosaic also completed its $1.2 billion purchase and integration of CF Industries Incorporated's (NYSE:CF) (Deerfield, Illinois) phosphate assets.
"A year ago, on our fourth quarter 2013 earnings call, I said the following: We're starting to see some rays of sunlight at the end of this tunnel, and Mosaic is well positioned for the daylight to come," said James T. Prokopanko, the chief executive officer, president and director of Mosaic, in a conference call. "Well, our predictions don't always come true, but in this case, it's very gratifying to be proven right. The sunlight was real and Mosaic was, and is, in an excellent position to benefit in better parts of the business cycle."
He added: "Robust demand for our products and good execution were the primary drivers of our earnings, and we expect global demand to remain strong in 2015."
Mosaic executives expect capital expenditures and investments for full-year 2015 to total between $1.1 billion and $1.4 billion. Total sales volumes for the Phosphates segment are expected to range from 2.8 million to 3.1 million tonnes for the first quarter, compared with 2.7 million in the same period last year, with higher prices and lower raw material costs; sales volumes for the Potash segment are expected to total 2 million to 2.3 million tonnes, down from 2.4 million in first-quarter 2014, although demand is expected to be strong and Canadian production less expensive.
"The ADM distribution acquisition in Brazil and Paraguay closed toward the end of the year, and integration work is proceeding well," Prokopanko said in the conference call. "We are now a major player in South America, with the capacity to distribute 6 million tons of product."
He added: "We continue to be on track for the first phase of our Esterhazy K3 project, which is expected to begin delivering tonnes in 2017. The board [of directors] has approved the modification of the original scope to accelerate the second phase of K3 development. The accelerated construction plan will move up the time frame when could execute the option to replace underground operations at K1 and K2, and thus entirely eliminate brine management costs."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
