PotashCorp President and CEO Jochen Tilk says the company saw positive pricing trends in the second half of 2016 and he expects that to continue this year.
He sees a continued potash recovery given the healthy level of underlying consumption, lower global inventories and with Canpotex fully committed for the first quarter. But, Tilk sees a more cautions second-half outlook for their nitrogen earnings as well as challenges in phosphate results. Tilk says Rocanville, their lowest cost operation, is in the process of being ramped up. The company is reporting fourth quarter earnings of 7 cents per share, bringing earnings for the year to 40 cents per share. Results were down from the 24 cents per share and $1.52 per share earned in the respective periods of 2015. Gross margins for both the quarter and the year were well below the 2015 totals. Weaker prices for all three nutrients were blamed. The merger of equals that is currently underway with Agrium continues. The regulatory review and integration processes are continuing and the transaction is expected to close mid-year.