Russia’S leading potash producer Uralkali, which merged with Silvinit fertilizer producer last year, saw first quarter IFRS net profit fall 10.6 percent quarter-on-quarter to $780 million, the firm said in a statement on Thursday.
The company’s revenue for the quarter fell 11.8 percent in January-March 2012 to $901 million, with sales volume falling 19.2 percent to 2.1 million tons.
“The financial results of the first quarter reflected, on the one hand, lower potash deliveries at the beginning of the year and, on the other hand, continuing strength in potash prices that managed to maintain the levels achieved in 2011,” Uralkali CEO Vladislav Baumgertner was quoted in the statement as saying. “Market conditions and cautious buyer sentiment that had continued since the fourth quarter of 2011 impacted global potash sales in the beginning of the year.”
Uralkali’s potash chloride production in the first three months of 2012 fell 32.1 percent to 1.9 million tons. The average export potash price (FCA) rose to $376 per ton from $363, while the average domestic potash price increased to $268 per ton from $212.
“At the beginning of the second quarter of 2012 the market returned to normal following strong demand in Brazil, and seasonal pick-up in application in the USA, Europe and Asian countries. As a result, potash inventories depleted across spring application in all major markets excluding India,” Uralkali said.