Potash production at the Werra plant secured until at least Christmas
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.
Because of this, K+S expects a negative EBITDA effect of a maximum of € 15 million in the fourth quarter of 2018. "We can now confirm our range for the EBITDA of € 570 to 630 million, including this possible additional burden. Thereby we expect an average de-icing salt business in December," says Dr. Burkhard Lohr, CEO of K+S.
K+S is seeing a positive business development in the current quarter. "Our de-icing salt business has started very well. But the important month is December. On top of that, there is a continuation of the positive price development as well as continued robust demand in the potash business." Dr. Lohr continues.
Positive view of production in 2019
K+S will use the expected production stoppages to reduce inventories in the buffer storage ponds. This should mean that stoppages in potash production at the Werra plant are unlikely, even if the drought persists in the first quarter of 2019.
From early summer 2019, K+S is also expected to be in a position 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. The technical solution for the underground storage of saline wastewater has been found. The preparation of the approval has been initiated. "In the coming year, we should have a significantly higher level of reliability in production, even in drought conditions", concluded Dr. Lohr.
K+S is a customer-focused, independent minerals company for the Agriculture, Industry, Consumers, and Communities segments and wants to grow the EBITDA to € 3 billion by 2030. Our approximately 15,000 employees enable farmers to provide nutrition for the world, solutions that keep industries going, improve daily life for consumers and provide safety in winter. We continually meet the growing demand for mineral products from production sites in Europe, North and South America as well as a worldwide sales network. We strive for sustainability because we are deeply committed to our responsibilities to people, environment, communities, and economy in the regions in which we operate. Learn more about K+S at www.k-plus-s.com.