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Mosaic posts net income of $1.0 billion in second quarter, expects strong fundamentals to continue

Kitco Media
By Vladimir Basov
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(Kitco News) - The Mosaic Company (NYSE: MOS) today reported net income of $1.0 billion ($2.85 per diluted share) for the second quarter of 2022.

The company said that second quarter revenues were up 92 percent year-over-year to $5.4 billion, adding that the gross margin rate in the quarter was 34 percent, up from 27 percent in second quarter of 2021.

Adjusted EBITDA totaled $2.0 billion, up from the prior year period total of $829 million. The company generated cash flow from operations of $1.6 billion and free cash flow of $794 million.

Potash operating earnings totaled $915 million, up from $49 million in the prior year period, and Adjusted EBITDA totaled $998 million, up from $285 million in the second quarter of 2021. Higher pricing was partially offset by higher input costs, royalties, and Canadian resource taxes, the company said.

Phosphates operating earnings totaled $578 million, up from $283 million in the prior year period, and Adjusted EBITDA totaled $758 million, up from $408 million in the second quarter of 2021.

"Higher pricing more than offset lower volumes, which were impacted by a compressed North American spring application season and plant turnarounds during the quarter," the company said.

Mosaic Fertilizantes operating earnings totaled $420 million and Adjusted EBITDA totaled $444 million in the second quarter of 2022. This compares to operating earnings of $170 million and Adjusted EBITDA of $203 million from the prior year period. Second quarter results reflect higher pricing and improved market positioning, Mosaic explained.

"Mosaic's second quarter results demonstrate the strength of the business," said Joc O‘Rourke, President and CEO. ”We are expanding production to help meet global demand and returning significant capital to shareholders. We expect strong fundamentals will continue for the rest of the year and into 2023.”

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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