The Mosaic Company ( MOS Quick Quote MOS - Free Report) released its combined sales volumes and revenue data for July and August 2023, by business units.
In the first two months of the third quarter of 2023, potash sales volumes rose by 4% year over year to 1.48 million tons. However, revenues dropped from $967 million in the same period of 2022 to $489 million. For the third quarter, Potash sales volumes are projected to be close to the upper end of the previous guidance of 2.1-2.3 million tons. This reflects the continued robust demand in North America. The price guidance for MOP (Muriate of Potash) remains consistent at $250-$300 per ton.
Phosphate sales volumes rose by 10.4% year over year in the first two months of the third quarter of 2023 to 1.08 million tons, but revenues dropped from $966 million in the same period of 2022 to $642 million.
In the Phosphates division, third-quarter sales volumes are expected to be in the range of 1.6-1.8 million tons. However, shipments were affected by Hurricane Idalia, necessitating a brief proactive production halt. Operations in Florida, which produce approximately 20,000 finished product tons daily, resumed within three days. In Louisiana, an unforeseen local utility power disruption at the end of August led to damage at Louisiana's Uncle Sam facility, specifically the largest sulfuric acid plant. Repairs for this facility, operating at a production rate of 15,000 finished product tons per week, are anticipated to conclude by the end of October.
Third-quarter realized DAP (Diammonium Phosphate) prices, calculated on a FOB (Free on Board) basis, are expected to align with the previous guidance of $475-$525 per ton.
Mosaic Fertilizantes sales volumes rose by 6.6% year over year in the first two months of the third quarter of 2023 to 2.06 million tons, but sales revenues dropped from $1,788 million in the same period of 2022 to $1,150 million.
Mosaic’s shares have declined 31% in a year compared with a 34.9% fall recorded by the
industry. Image Source: Zacks Investment Research Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Carpenter Technology Corporation ( CRS Quick Quote CRS - Free Report) and Akzo Nobel N.V. ( AKZOY Quick Quote AKZOY - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), and Alamos Gold Inc. ( AGI Quick Quote AGI - Free Report) , carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
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