Mosaic Announces October and November 2024 Revenues and Sales Volumes
Rhea-AI Summary
Mosaic Company (NYSE:MOS) has reported its October and November 2024 sales performance across segments. Potash segment saw sales volumes decline to 1,228K tonnes from 1,638K tonnes, with revenues dropping to $299M from $506M. Phosphates segment recorded sales volumes of 946K tonnes versus 1,019K tonnes, with revenues slightly up at $680M from $677M. Mosaic Fertilizantes showed growth with sales volumes of 1,640K tonnes compared to 1,472K tonnes, generating revenues of $823M versus $811M.
Performance was impacted by hurricanes Helene and Milton affecting phosphate production, while Canadian rail and port strikes delayed Potash shipments. The company has secured a third ammonia supply agreement to enhance raw materials reliability.
Positive
- Slight revenue increase in Phosphates segment to $680M from $677M
- Mosaic Fertilizantes showed growth in both volumes (11.4%) and revenues (1.5%)
- Secured third ammonia supply agreement enhancing supply chain reliability
Negative
- Potash sales volumes decreased 25% year-over-year
- Potash revenues declined 41% to $299M from $506M
- Phosphate sales volumes dropped 7.2% due to hurricane disruptions
- Additional logistics costs incurred in Potash segment due to strikes
Insights
Potash segment shows concerning metrics with sales volumes dropping
The new ammonia supply agreement strengthens vertical integration but may not offset near-term operational challenges. The compounding effects of weather disruptions and labor strikes suggest Q4 earnings could face significant pressure, though some Canpotex shipments may recover by quarter-end. The divergence between volume declines and revenue impacts across segments points to complex market dynamics affecting pricing power and operational efficiency.
The operational disruptions highlight significant vulnerabilities in Mosaic's supply chain infrastructure. The dual impact of natural disasters (Hurricanes Helene and Milton) on phosphate operations and labor disputes affecting Canpotex logistics represents a perfect storm of supply chain challenges. The successful execution of a third ammonia supply agreement demonstrates proactive risk management, but the immediate logistics hurdles have created substantial bottlenecks.
The Canpotex shipping delays particularly expose the risks of concentrated logistics channels in the Canadian distribution network. While the company expects volume recovery by quarter-end, the additional logistics costs incurred to mitigate strike impacts will compress margins. This situation underscores the need for diversified shipping routes and robust contingency planning. The volume-to-revenue ratios across segments suggest varying degrees of supply chain efficiency and pricing power in different markets.
TAMPA, FL / ACCESSWIRE / December 23, 2024 / The Mosaic Company (NYSE:MOS) today announced its combined October and November 2024 sales volumes and revenue by business segment.
Potash | Oct./Nov. 2024 | Oct./Nov. 2023 |
Sales volumes (000 tonnes (1)) | 1,228 | 1,638 |
Sales revenues (million USD) | ||
Phosphates | Oct./Nov. 2024 | Oct./Nov. 2023 |
Sales volumes (000 tonnes (1)) | 946 | 1,019 |
Sales revenues (million USD) | ||
Mosaic Fertilizantes | Oct./Nov. 2024 | Oct./Nov. 2023 |
Sales Volumes (000 tonnes (1)) | 1,640 | 1,472 |
Sales Revenues (million USD) |
(1)Tonnes = finished product tonnes
Phosphate sales volumes in the first two months of the fourth quarter of 2024 reflect the impact of lost production and shipments related to hurricanes Helene and Milton.
Potash sales volumes in the first two months of the fourth quarter of 2024 reflect a delay in Canpotex shipments caused by Canadian rail and port strikes which are expected to be recovered by the end of the quarter. Potash revenues for the first two months of the fourth quarter were impacted by additional Canpotex logistics costs incurred to mitigate volume losses from the strikes.
Mosaic has successfully completed a third ammonia supply agreement in line with our strategy to ensure raw materials supply reliability and competitiveness.
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: |
Jason Tremblay 813-775-4226 Joan Tong, CFA, 863-640-0826 | Ben Pratt, 813-775-4206 |
|
|
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 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 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 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 MWSPC, the future success of current plans for MWSPC and any future changes in those plans; risks related to the anticipated value of the Ma'aden shares to be issued in the proposed transaction at transaction announcement and at closing, the expected timing and likelihood of completion of the pending Ma'aden transaction, including the 5 inability to receive the required approval by Ma'aden shareholders and other approvals, including potential regulatory approvals, necessary to complete the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the applicable agreement; the risk that there may be a material adverse change with respect to the financial position, performance, operations or prospects of Ma'aden and MWSPC; 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; 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
View the original press release on accesswire.com
FAQ
How did hurricanes Helene and Milton impact MOS phosphate production in Q4 2024?
What were MOS Potash segment revenues for October-November 2024?
How did Canadian rail and port strikes affect MOS Potash shipments in Q4 2024?
What was the performance of MOS Fertilizantes segment in Oct-Nov 2024?
How many ammonia supply agreements does MOS now have in place?
