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The increase in revenue more than offset expected increases in energy, logistics and material costs, the company said in Kassel on Wednesday. Group CEO Burkhard Lohr now expects operating profit (Ebitda) to grow between 2.3 and 2.6 billion euros in 2022. That’s more than analysts expected in mean. So far, the council had targeted 1.6 to 1.9 billion euros – after just under a billion euros in 2021.
The K+S share price eventually climbed via XETRA by 4.94% to EUR 33.99. This put K+S’s share among the top values in the MDAX a little lower. The stock has gained around 120% since the start of the year.
The fertilizer maker has been taking advantage of strong agricultural markets for some time, pushing up potash prices. Additional price increases have recently been caused by Western sanctions against Belarus and Russia. The American bank JPMorgan only recommended the K+S action on Friday and raised its target price to 44.50 euros.
Adjusted free cash inflow should reach 1.0 to 1.2 billion euros for the current year. So far, the council had targeted 600 to 800 million – after 93 million in 2021. However, a total of around 230 million euros should be deducted from this forecast due to the purchase of CO2 certificates, it said. -He specifies. Taking this effect into account, the lower end of the new forecast is roughly at the upper end of the old target range.
In the forecast, however, K+S did not take into account production interruptions that could occur if the supply of natural gas to German sites were compromised due to Russia’s war against Ukraine. The company intends to present a full year outlook when it presents its first quarter figures on May 11.
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