SPY423.52-0.79 -0.19%
DIA343.00-2.12 -0.61%
IXIC14,128.95+59.53 0.42%

CORRECTED-Minerals group K+S hikes 2021 profit forecast on higher potash prices

05/11/2021 01:00
CORRECTED-Minerals group K+S hikes 2021 profit forecast on higher potash prices

Corrects paragraph 7 to show transaction closed last month, not expected to close this summer

- German potash and salt miner K+S SDFGn.DE raised its 2021 core profit forecast on Tuesday, saying a recent rise in potash prices should have an increasingly positive impact in the coming quarters.

K+S, which produces around 11% of the world's potash, an essential nutrient for crops, said it had seen good demand for the mineral across its key regions.

The group, which also makes salts for cooking, animal feed and de-icing roads, now expects full-year earnings before interest, tax, depreciation and amortisation (EBITDA) in a range of 500-600 million euros ($607-$728 million).

In March, it had forecast 440-540 million euros. nL1N2L71DN

The company's first-quarter EBITDA rose 27% to 126 million euros, beating analysts' average forecast of 113 million euros in a company-provided poll.

"From today's perspective, we are also optimistic about the further course of the year," Chief Executive Burkhard Lohr said in a statement.

K+S is working to cut debt after big spending on a new potash mine in Canada. Last month, it closed a deal to sell its Americas salt business as part of a plan to focus on potash. nL8N2GW5CR nL1N2MC281

Quarterly revenue rose 13% to 733 million euros, beating a consensus forecast of 714 million.

The group's main potash competitor, Canada's Nutrien NTR.TO, last week reported better-than-expected quarterly profit and said it expected potash demand to grow for the next decade. nL1N2MR1CW

K+S's shares have risen by a third this year, outperforming Germany's mid-cap index .MDAXI.

($1 = 0.8238 euros)

(Reporting by Milla Nissi and Jagoda Darlak in Gdansk. Editing by Mark Potter)

(([email protected] ; +48 58 769 6566))