Seeking Alpha

SQM cuts capex as potash price war looms

  • Chilean fertilizer producer SQM (SQM -1.3%) says it will cut its planned spending for this year to ~$400M, below $500M estimated previously, and invest even less in 2014, in the wake of the increasingly nasty potash dispute between Russia and Belarus.
  • The bleak outlook comes on top of a difficult Q2 for SQM, which reported overall sales slipping and sharply lower net profit, down 44% Y/Y.
  • Analysts at Chile-based LarrainVial estimates that existing pressure on SQM's margins and the Russian situation could result in realized 2014 prices for potassium chloride of ~$300/metric ton vs. its previous forecast of $471.
From other sites
Comments (3)
  • bd4uandu
    , contributor
    Comments (2022) | Send Message
    If SQM potash business is only 3% why....?
    28 Aug 2013, 05:10 PM Reply Like
  • pfifla1
    , contributor
    Comments (525) | Send Message
    I believe it is somewhere around 30%?? What i want to understand is the Lithium side of the business - with TSLA taking off and more EVs to come.
    28 Aug 2013, 05:29 PM Reply Like
  • bd4uandu
    , contributor
    Comments (2022) | Send Message
    "As you may know, we are a minor player in this market, and our sales represent less than 3% of world demand"
    28 Aug 2013, 05:35 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs