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Potash production at the Werra plant secured until at least Christmas despite prolonged drought; full-year guidance confirmed
Despite the persistent, extreme drought, full production at the three sites of the Werra potash plant is now guaranteed up to and including December 23. Against this background and assuming a prolonged extreme drought, disposal-related stoppages in production are now only expected to continue over the holidays until January 1. Should significant rainfall occur in the coming days, these stoppages could be further reduced.
The negative effect on earnings would amount to a maximum of € 15 million. Nevertheless, K+S confirms its earnings guidance (EBITDA) in the range of € 570 to 630 million. This assumes an average de-icing salt business in December.
From today's perspective, stoppages in potash production at the Werra plant, even in the event of a prolonged drought, are unlikely in the first quarter of 2019 due to the reduction in stocks in the buffer storage ponds.
From early summer 2019 onwards, K+S will most likely be able to increase the on-site temporary storage capacity for saline wastewater by further up to 400,000 m3 to a total of up to 1 million m3.
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