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Mar 31, 2022
Intrepid Potash Q1 2022 Earnings Report
Intrepid reported strong first quarter results driven by higher prices for potash and Trio, with adjusted EBITDA reaching the best figure since Q3 2012.
Key Takeaways
Intrepid Potash, Inc. reported a significant increase in sales and profitability for Q1 2022. Total sales increased to $104.4 million, net income reached $31.4 million, and adjusted EBITDA was $50.2 million. The company benefited from higher realized prices for potash and Trio® and is implementing projects to improve production volume.
Total sales increased to $104.4 million compared to $71.5 million in Q1 2021, driven by higher potash and Trio net realized sales prices.
Net income was $31.4 million ($2.31 per share), a $29.0 million improvement compared to Q1 2021.
Gross margin improved by $38.1 million year-over-year to $47.2 million.
Adjusted EBITDA was $50.2 million, a $37.3 million improvement over the prior year.
Intrepid Potash
Intrepid Potash
Intrepid Potash Revenue by Segment
Revenue by Segment
Potash Revenue
CapyFin.comTrio Revenue
CapyFin.comOilfield Solutions Revenue
CapyFin.com Forward Guidance
Intrepid anticipates a positive outlook for the remainder of 2022 and the next few years, driven by a strong supply-demand balance for potash. Improvement projects are underway to increase potash production volume, and steady demand is expected due to current crop prices.
Positive Outlook
- Supply-demand balance for potash should continue to support strong economics.
- Strong international pricing continues to absorb supply, helping create a US market with minimal excess swing capacity in the near-term.
- Multiple improvement projects at potash facilities are beginning, including a new injection pipeline at HB, another potash cavern in Moab, and upgraded wells at the Wendover facility.
- These projects are expected to add production volume as early as the spring of 2023 and continue to increase through the next few evaporation seasons.
- Current crop prices should continue to drive steady demand in the US.
Challenges Ahead
- Sanctions on Belarus took effect in April, impacting the potash supply.
- Below-average 2021 production season led to fewer tons in inventory and less potash available in ponds.
- Unfavorable weather in various parts of the U.S. in the first quarter delayed planting.
- Reduced sales volumes due to fewer tons available.
- The Carlsbad, New Mexico area, where the HB solar solution mining facility is located, experienced unusually wet, humid weather, which limited evaporation and extraction rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income