PotashCorp Reports 2015 Second Quarter Earnings

Potash Corporation of Saskatchewan (TSX:POT,NYSE:POT) announced its second quarter and first half financial results, which showed earnings of $417 million, or $0.50 per share, and $787 million, or $0.94 per share, respectively.
As quoted in the press release:

Earnings for both the quarter and the first six months trailed 2014’s comparable period amounts of $0.56 per share ($472 million) and $0.95 per share ($812 million), respectively.
Improved potash and phosphate contributions were offset by weaker nitrogen earnings, resulting in gross margin of $711 million in this year’s second quarter (down 5 percent) and $1.4 billion for the first half (up 5 percent).
Cash from operating activities of $836 million in the second quarter and $1.4 billion for the first half of 2015 surpassed last year’s comparable totals due to favorable changes in non-cash operating working capital. Earnings before finance costs, income taxes and depreciation and amortization (EBITDA)² of $792 million for the quarter and $1.5 billion for the first six months were below 2014 comparative figures.
Our investments in Arab Potash Company (APC) in Jordan, Israel Chemicals Ltd. (ICL) in Israel, Sociedad Quimica y Minera de Chile S.A. (SQM) in Chile and Sinofert Holdings Limited (Sinofert) in China contributed $64 million to our quarterly earnings. This result exceeded the $55 million earned in the second quarter of 2014 and brought first-half contributions to $97 million, down significantly from last year’s total of $155 million, which included a special dividend from ICL.

Jochen Tilk, president and CEO of PotashCorp, commented:

Our earnings for the quarter hit the midpoint of our guidance range but trailed last year’s total, primarily due to weaker nitrogen prices. While we have faced some near-term market headwinds, we are encouraged by the strength of global potash demand, especially in offshore markets. During the first six months of this year, our offshore shipments reached a record total and we believe these conditions will continue to support further growth of our potash business in the years ahead.

Click here to read the full PotashCorp (TSX:POT,NYSE:POT) press release.