Higher Prices Drive K+S Profit Up - K+S raises profit forecast after strong Q3 earnings and fertilizer demand
K+S, a German chemical company, has updated its financial outlook for the year. Despite increased investments, it anticipates a slightly positive adjusted free cash flow. The company's full-year profit forecast has been narrowed to a range of €570 million to €630 million.
K+S's earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped significantly by around two-thirds to €111 million in the third quarter. This was driven by a 1.5% year-on-year revenue increase to €879 million during the same period. The company benefited from modest price increases in its agricultural fertilizer business both in Europe and overseas markets. Additionally, strong sales of de-icing salt helped offset weak demand in its industrial division.
Prices for specialty products remained high and were even raised further in some cases. Looking ahead, the final full-year profit figure will depend on factors such as potash fertilizer production, gas prices, and weather conditions. Notably, K+S is accelerating the annual ramp-up in its Bethune project in Canada, aiming to reach 150,000 tons this year, with a long-term goal of 4 million tons per year.
K+S's third quarter results and updated financial outlook reflect a positive performance, with increased EBITDA and revenue. The company's adjusted free cash flow is expected to be slightly positive despite higher investments. The final full-year profit will be influenced by various factors, including the progress of the Bethune project.
