SASKATOON – Record fourth-quarter potash shipments and higher prices pushed the POTASH CORP. OF SASKATCHEWAN’s earnings for the period to US$117.1 million compared with US$100.1 million for the same quarter a year earlier. Record earnings, gross margins and production were all reported for the full 2005 year. The company’s 2005 earnings of US$542.9 million was more than 80% higher than the previous record set in 2004.
PotashCorp’s 2006 capital expenditures are estimated to be US$480 million, of which US$160 million will relate to sustaining capital. The majority of the new capital will be used to return long-idled capacity to production at the Allan and Lanigan mines in Saskatchewan, to conclude the final two Trinidad ammonia plant debottlenecking projects, and to complete the purified acid expansion at Aurora, Ont.
The complete press release, which includes this year’s outlook for potash, nitrogen and phosphate, is posted at www.PotashCorp.com.
PotashCorp is also increasing its interest in Hong Kong-based SINOFERT by exercising its option to purchase an additional 10.1% of the Chinese company. The company paid US$97 million for its initial stake and US$125 million to increase its holdings.