Higher prices
K+S intends to make unexpectedly strong gains
2/9/2022, 8:39 p.m
K+S can impose price increases on its customers. As a result, the Kassel-based company expects earnings to double this year. In addition, the company can draw a line under a dispute with conservationists.
Thanks to higher prices, the salt and fertilizer group K+S is aiming to double its earnings this year. An operating profit (Ebitda) of between 1.6 billion and 1.9 billion euros is expected for 2022, as the Kassel-based company announced. That is significantly more than analysts had previously expected at just under 1.3 billion euros. According to preliminary figures, K+S achieved earnings of around 960 million euros in 2021, which includes one-off income of around 220 million euros from the contribution of K+S waste disposal activities to a joint venture with the recycling group Remex.
K+S is banking on higher prices for its agricultural customers this year. These could more than compensate for rising costs, especially for energy, logistics and materials. The group intends to publish full figures and the entire outlook on March 10th. K+S produces about eleven percent of the world’s potash, an important nutrient for crops. Global potash spot prices hit a 13-year high in December after crop prices soared and demand recovered.
However, the company can draw a line under the legal dispute with the Hesse state association of the nature conservation organization BUND about the early start of the heap expansion at the K+S Hattorf site of the Werra plant. Both sides settled out of court. K+S undertakes not to carry out clearing work on sub-areas this winter. The trees in the infrastructure and edge strips of the area should also only be cleared to the extent that is absolutely necessary. In addition, a biotope in the edge strip will initially be preserved. In the meantime, K+S has resumed the interrupted preparations for the heap expansion, against which the BUND had filed a complaint.