German minerals group K+S maintains annual outlook on soaring potash prices

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Aug 11 (Reuters)Potash and salt miner K+S SDFGn.DE reiterated its full-year core revenue steerage on Thursday, because it expects soaring prices to offset the influence of a possible gasoline scarcity in Germany.

The group confirmed its April forecast of 2022 earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) of between 2.3 billion and a pair of.6 billion euros ($2.37 billion and 2.67 billion) however now included a gasoline bottleneck situation in its calculations.

This situation assumes a 25% discount in pure gasoline availability within the fourth quarter, which along with a brand new gasoline levy would lead to a price burden within the low triple-digit million euro vary, Chief Executive Officer Burkhard Lohr stated in a press release.

Last week, Germany’s cupboard imposed a levy on gasoline customers from October to assist suppliers hit by exploding import prices brought on by Russia’s invasion of Ukraine.

Potash demand remained “significantly” beneath final yr resulting from restricted provide, Lohr added, although he predicted that spot prices would stabilise at a excessive degree within the second half of the yr.

Ok+S’s EBITDA rose greater than six-fold year-on-year to 706 million euros within the April-June interval, beating analysts’ common forecast of 664 million euros in a company-provided poll, whereas revenues greater than doubled to 1.5 billion euros.

Western sanctions on rivals Belaruskali from Belarus and Russia’s Uralkali URKA.MM, which collectively account for about one third of the world’s potash manufacturing, have made the important thing crop fertiliser extra scarce and costly.

“We had very good general conditions for our business,” Lohr stated.

Canadian peer Nutrien NTR.TO posted file income attributable to sanctions on Russia final week but additionally lower its full-year adjusted revenue forecast because it expects greater gasoline prices to weigh on its nitrogen enterprise.

($1 = 0.9720 euros)

(Reporting by David Latona and David O’Sullivan in Gdansk; further reporting by Patricia Weiss; enhancing by Tom Sims and Rashmi Aich)

((david.latona@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.



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