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Behind PotashCorp’s Potash Shipments in 3Q17

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Potash shipments

PotashCorp’s (POT) Potash segment sales grew by ~9% YoY (year-over-year) to $1.2 billion in 3Q17. Strong shipment volumes and price growth drove this growth in the segment’s sales.

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Shipment growth

In 3Q17, PotashCorp’s shipments took a big jump from the volume levels shipped one year ago. The company’s shipment volume grew ~13% YoY (year-over-year) to 2.9 million metric tons in 3Q17, up from 2.5 million metric tons in 3Q16. During the 3Q17 earnings call, POT President Jochen E. Tilk stated that potash volumes in 3Q17 were at their “highest total ever sold in a single quarter.”

Shipments in North America grew 10% YoY, while offshore shipments grew 14% YoY.

According to PotashCorp, it saw record Canpotex sales volumes during the quarter. Canpotex is a marketing and distribution consortium held jointly by PotashCorp, Agrium (AGU), and Mosaic (MOS), which sells potash products for all three companies on the international market. Canpotex exports to a total of 40 countries, and its key markets include India, China, Brazil, Malaysia, and Indonesia.

Shipment outlook

During the 3Q17 earnings call, the company’s management stated that it expects total potash shipment volumes to be 9.1 million–9.3 million metric tons for fiscal 2017, which would be 5.8% higher YoY, up from 8.6 million metric tons in fiscal 2016.

Stroger potash sales have heightened expectations for the potash segments (MOO) of peers Agrium (AGU), Intrepid Potash (IPI), and Mosaic (MOS), which will report their earnings later this month.

Next, we’ll discuss potash prices.

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