02 May 2013 00:01 [Source: ICIS news]
HOUSTON (ICIS)--US-based potash producer Intrepid Potash reported on Wednesday a Q1 net income of $14.9m (€11.3m), down 28% from $20.6m reported for the same time last year because of lower sales as well as higher administrative expenses.
Q1 sales were $99.3m, down 11% from $112.2m for the same time last year.The company attributed the drop to the fact that, in 2012, farmers were able to get more applications of potash applied than had been the case in the first quarter of 2013.
Company officials said they are pleased with the results despite the moderate declines and that the company is focused on producing incremental tons at lower cost and investing capital to improve operating efficiency. In Q1 2013 capital investments totalled $64.2m with an anticipated investment budget of $235m-285m for the full-year.
They further added that demand for potash in North America remains strong and that there has been no evidence as of yet that price erosion is occurring due to planting delays.
“Our team delivered strong first quarter results, which have us off to a solid start this year. We developed and continue to utilise a deliberate approach to growing our customer base by diversifying our product offerings, adding marketing flexibility, leveraging our geographic advantage and building strong relationships," said Bob Jornayvaz, Intrepid's executive chairman.
"Our approach yielded robust sales despite the weather-related delays in the spring planting and potash application season. Furthermore, our marketing strategy was key to achieving healthy average net realised sales prices that, when combined with our operating performance that resulted in lower per ton costs, enabled us to maximise our margin and cash flows."
($1 = €0.76)
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