Lower potash prices and a very mild winter have negatively impacted profits in 2020.  Revenue was € 3.7 billion (€ 4.1 billion in 2019).  EBITDA was 445 million euros (640 million euros in 2019).  EBITDA from continuing operations is expected to range from € 440 million to € 540 million.

Thanks to extensive preventive measures and a well-functioning crisis management system, K + S is coping relatively well with the ongoing coronavirus pandemic.  Production at all potash deposits may even increase compared to last year.  The costs of the pandemic are estimated at around 40 million euros.

Following the long-awaited signing of contracts with Chinese buyers, the recovery in potash prices in 2020 was weaker than expected.  Mild winters in North America and Europe negatively impacted de-icing salt sales.  In addition, there were one-off costs associated with management restructuring, as well as transaction costs from the sale of an operating unit in the Americas.  All these factors led to a decrease in EBITDA.

 “Despite the challenging environment, we are not satisfied with the EBITDA achieved in 2020,” said Dr. Burkhard Lohr, Chairman of the Board of Executive Directors of K + S. “On the other hand, we have made significant progress.”  In this regard, Lohr refers to an agreement for the sale of an operating unit in the Americas, concluded in October 2020.  According to him, from this sale, K + S will receive revenues of about 2.5 billion euros and, therefore, will significantly reduce its debt.  The related management restructuring was completed as scheduled at the end of the year.  In the future, this will save 30% of costs, which is equivalent to 60 million euros.

 “We are seeing some improvement in our business environment in 2021 and therefore expect higher operating income this year,” said Dr. Lohr of the current year's forecasts.

The general business environment for K + S has improved since the beginning of the year.  Yield prospects are improving.  Accordingly, K + S assumes very good demand for potash fertilizers and further recovery in prices this year.  The company expects demand for deicing salt in the first quarter to be above average due to cold weather conditions earlier in the year.

News taken from the site - infoindustria.com.ua

https://infoindustria.com.ua/k-s-prognoziruet-uluchshenie-czen-na-kalijnye-udobreniya/#