Mosaic Announces July and August 2024 Revenue and Sales Volumes
Rhea-AI Summary
The Mosaic Company (NYSE:MOS) has released its combined July and August 2024 sales volumes and revenue by business segment. Potash sales volumes decreased to 1,310,000 tonnes from 1,483,000 tonnes in the same period last year, with revenues falling to $358 million from $489 million. Phosphates sales volumes dropped to 937,000 tonnes from 1,081,000 tonnes, with revenues declining slightly to $620 million from $642 million. Mosaic Fertilizantes saw sales volumes decrease to 1,851,000 tonnes from 2,016,000 tonnes, with revenues dropping to $886 million from $1,150 million.
The company has resolved production challenges at Colonsay and restored Esterhazy hoisting capacity. However, due to various interruptions, Mosaic has adjusted its Q3 2024 guidance. Potash sales volumes are now expected to be 1.85-2.05 million tonnes, down from the previous 2.1-2.3 million tonnes. Phosphates sales volumes are projected at 1.45-1.65 million tonnes, reduced from 1.7-1.9 million tonnes, partly due to Hurricane Helene's impact on shipments.
Positive
- Production challenges at Colonsay have been resolved, with production returning to normal
- Esterhazy hoisting capacity has been restored to meet full milling capacity
- Production at the Louisiana facility has returned to normal after weather-related interruptions
Negative
- Potash sales volumes decreased by 11.7% in Jul/Aug 2024 compared to the same period in 2023
- Potash sales revenues declined by 26.8% in Jul/Aug 2024 compared to Jul/Aug 2023
- Phosphates sales volumes dropped by 13.3% in Jul/Aug 2024 compared to the same period last year
- Mosaic Fertilizantes sales volumes decreased by 8.2% in Jul/Aug 2024 compared to Jul/Aug 2023
- Mosaic Fertilizantes sales revenues declined by 23% in Jul/Aug 2024 compared to the same period in 2023
- Q3 2024 potash sales volume guidance reduced to 1.85-2.05 million tonnes from 2.1-2.3 million tonnes
- Q3 2024 phosphates sales volume guidance lowered to 1.45-1.65 million tonnes from 1.7-1.9 million tonnes
Insights
The reported sales volumes and revenues for July and August 2024 show a concerning trend across all segments. Potash sales volumes decreased by 11.7% year-over-year, with revenues dropping by
Phosphates segment also experienced a decline, with sales volumes down by
Mosaic Fertilizantes saw the largest revenue decline of
The production challenges and weather-related interruptions have led to downward revisions in Q3 2024 volume guidance for both Potash and Phosphates segments. While some recovery is expected in Q4, these issues will likely impact the company's full-year performance negatively.
The global fertilizer market is showing signs of softening demand and pricing pressure. Mosaic's volume declines across all segments indicate a broader industry trend rather than company-specific issues. The significant price drops in potash (implied
The revised guidance for Q3 2024 reflects both operational challenges and market conditions. Potash volumes are now expected to be
Despite these challenges, Mosaic maintains its price outlook for both MOP and DAP, which could indicate some stabilization in the market. However, investors should monitor whether these price levels can be sustained given the volume pressures. The company's ability to recover delayed shipments in Q4 will be important for meeting annual targets and maintaining investor confidence.
TAMPA, FL / ACCESSWIRE / September 26, 2024 / The Mosaic Company (NYSE:MOS) announced its combined July and August 2024 sales volumes and revenue by business segment.
Potash |
| Jul/Aug 2024 |
|
| Jul/Aug 2023 | ||
Sales volumes (000 tonnes(1)) |
|
| 1,310 |
|
|
| 1,483 |
Sales revenues (million USD) |
| $ | 358 |
|
| $ | 489 |
Phosphates |
| Jul/Aug 2024 |
|
| Jul/Aug 2023 | ||
Sales volumes (000 tonnes (1)) |
|
| 937 |
|
|
| 1,081 |
Sales revenues (million USD) |
| $ | 620 |
|
| $ | 642 |
Mosaic Fertilizantes |
| Jul/Aug 2024 |
|
| Jul/Aug 2023 | ||
Sales Volumes (000 tonnes(1)) |
|
| 1,851 |
|
|
| 2,016 |
Sales Revenues (million USD) |
| $ | 886 |
|
| $ | 1,150 |
(1) Tonnes = finished product tonnes
Mosaic provided an operations update earlier this month. The company is pleased to announce that the production challenges caused by electrical issues at Colonsay have been resolved and production has returned to normal. Esterhazy hoisting capacity, which has been negatively impacted by an electrical issue, has been restored to levels that meet full milling capacity and allow for full production. Additional work will be undertaken over the next few months to complete repairs and ensure the highest-level of reliability.
Third quarter 2024 potash sales volumes are expected to be in the range of 1.85-2.05 million tonnes, down from 2.1-2.3 million tonnes in our previous guidance, reflecting the midpoint estimate previously provided regarding the aforementioned production interruptions. The outlook for MOP prices at the mine is unchanged at
In Phosphates, earlier this month, Mosaic announced production interruptions caused by weather related events including Hurricane Francine in Louisiana. The company is pleased to report production at the Louisiana facility has returned to normal.
In addition, in anticipation of Hurricane Helene, product shipments were curtailed beginning September 23 rd as the Tampa port was temporarily shut down. With an average shipment rate of approximately 150,000 tons per week, and uncertainty on whether shipments will resume within the week, Mosaic has further adjusted its volume guidance to reflect a one-week delay in customer shipments. Mosaic expects to recover a portion of those volumes in the fourth quarter.
Phosphates third quarter sales volumes are now expected to be in the range of 1.45-1.65 million tonnes, down from our previous guidance of 1.7-1.9 million tonnes. Guidance on DAP prices at the plant is unchanged in the range of
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphates and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
Mosaic will publish a market update on the company's investor relations website immediately after this press release. Mosaic - Market Education (mosaicco.com)
The Mosaic Company Contacts |
|
Investors: | Media: |
Joan Tong, CFA, 863-640-0826 | Ben Pratt, 813-775-4206 |
Jason Tremblay 813-775-4226 |
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa'ad Al Shamal Phosphate Company (also known as MWSPC), the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic's decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic's operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic's potash mines; other accidents and disruptions involving Mosaic's operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE: The Mosaic Company
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FAQ
What were Mosaic's (MOS) potash sales volumes for July and August 2024?
How did Mosaic's (MOS) phosphates sales revenues change in July/August 2024 compared to 2023?
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How has Hurricane Helene affected Mosaic's (MOS) operations in September 2024?
