Itafos Releases Strong Q2 2023 Financial and Operational Highlights

Itafos Inc., a leading US phosphate and specialty fertilizer company, has unveiled its Q2 2023 financial and operational achievements, showcasing robust performance amid evolving market dynamics. The company’s Q2 2023 financial highlights showed a revenue of $116.1 million in Q2 2023 compared to $155.0 million in Q2 2022; adjusted EBITDA of $39.7 million in Q2 2023 compared to $63.6 million in Q2 2022; net income of $20.4 million in Q2 2023 compared to $44.3 million in Q2 2022; basic earnings of C$0.14/share in Q2 2023 compared to C$0.30/share in Q2 2022; and free cash flow of $44.1 million in Q2 2023 compared to $41.3 million in Q2 2022.

The decrease in the company’s Q2 2023 financial performance compared to Q2 2022 was primarily due to lower realized prices due to softer global market conditions partially offset by lower input costs. The company’s total capex spend in Q2 2023 was $18.1 million compared to $16.0 million in Q2 2022, with the increase primarily due to the development activities at H1/NDR upon receipt of ROD in Q2 2023.

G. David Delaney, the CEO of Itafos, expressed satisfaction with the company’s Q2 2023 outcomes, remarking, “We are pleased to report solid financial results and continuation of our strong safety and operational performance in Q2 2023.”

Within the report, Itafos highlighted that diammonium phosphate (“DAP”) New Orleans (“NOLA”) prices averaged $527/st in Q2 2023 compared to $860/st in Q2 2022, down 39% year-over-year and averaged $571/st in H1 2023 compared to $827/st in H1 2022, down 31% year-over-year. Among the factors driving the year-over-year decline in DAP NOLA company named the weakened demand in response to historically high 2022 phosphate prices, the softening of global Ammonia and Sulphur prices, the softening of historically high crop prices, and increased phosphate exports out of Russia and China.

While Itafos reported strong operational and financial results, the company acknowledged the challenges posed by the sharp decline in commodity prices during Q2. This downturn has led the company to revise its full-year EBITDA guidance. Despite this, Itafos remains optimistic about its prospects, noting a rebound in commodity prices early in Q3 due to improving demand and tighter US supply dynamics. The company’s resilience and focus on both operational excellence and long-term value enhancement position it favorably in a rapidly evolving market landscape.

Source: Stockwatch