Production continues to rise
High demand for potash drives K+S . results
The demand for potash has ensured that fertilizer producer K+S earned considerably more in the second quarter of 2017 than in the same period last year. In Europe in particular, the company detects more demand for potassium and magnesium. This increases the deposited volume. It also expects more turnover for other locations.
In the second quarter of 2017, K+S made €163,3 million in revenue. That is an increase of €8 million, compared to the same period in 2016. According to the financial report published on 15 August from the company from the German Kassel.
60.000
ton
Strong demand from Europe
The fertilizer producer from Germany attributes the increase in turnover to the increasing demand for fertilizer. It has been able to sell more MOP (potassium) and magnesium products, especially in Europe. A total of 1,54 million tons in the second quarter, compared to 1,48 million tons a year earlier. In the first quarter of 2017, sales were even higher at 1,82 million tons. 52% of the profit, good for almost €19 million, comes from the sale of potash and magnesium.
More production in Canada
The high production volumes at the German mine of K+S are driving the company's results higher worldwide. In addition to the Werra mine, in the state of Thuringia, higher production for the mine in Canada is also expected. This location is expected to reach a production of 2017 million tons by the end of 2. The manufacturer hopes that this can be increased to 2,86 million tons in the long term. This new mine, in the province of Saskatchewan, has been in operation since July.
Question from Southeast Asia
Growth is expected again for the second half of 2017. Partly due to demand from China and India, where the company has struck lucrative deals. Sales volume is increasing, especially in Southeast Asia. For the whole of 2017, K+S expects a profit of between €260 and €360 million, with a production of 6,8 to 7 million tons of fertilizer.
dry periods
Ongoing lawsuit in Germany
The only blemish on K+S's reputation is the lawsuit that is currently pending against the mine in Werra. The local municipality is suing the company because it discharges waste water into old mines and the Werra River. As a result, K+S threatens the drinking water supply, says the municipality of Gerstungen. In the current quarter, both parties hope to resolve this dispute. The manufacturer, in turn, says that their wastewater has to go somewhere. If this is not possible, the potash production will come to a standstill.
The issue is not expected to be resolved with a lawsuit. Fertilizer production is stopped during dry periods due to problems with waste water. In the first 6 months of 2017, work had been forced to stop for almost a month.
Niels van der Boom
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