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Mar 31, 2023
Intrepid Potash Q1 2023 Earnings Report
Intrepid Potash reported a decrease in sales and net income for Q1 2023 due to lower realized sales prices for potash and Trio, despite increased sales volumes.
Key Takeaways
Intrepid Potash's Q1 2023 sales decreased by 17% to $86.9 million compared to Q1 2022, with net income significantly dropping to $4.5 million from $31.4 million year-over-year. The decline was primarily due to lower average net realized sales prices for potash and Trio, although sales volumes for both products increased.
Total sales decreased by 17% to $86.9 million, compared to $104.4 million in Q1 2022.
Net income decreased to $4.5 million (or $0.35 per diluted share) from $31.4 million (or $2.31 per diluted share) in Q1 2022.
Potash and Trio sales volumes increased to 89 thousand and 65 thousand tons, respectively.
Adjusted EBITDA decreased to $16.4 million from $50.2 million in the same prior year period.
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 steady demand for its products in the second quarter and is focused on the successful execution of its capital projects to improve brine quality and production.
Positive Outlook
- Anticipate steady demand for our products as farmers look to maximize their yields.
- The recent settlement of a key international contract has also helped establish a pricing floor for potash.
- In the U.S., we've recently seen increases in pricing as in-season demand has exceeded nearby supply.
- The conflict in Eastern Europe continues to be a key potash supply risk, adding further pricing support for the industry.
- We feel that we have the right personnel in place to help ensure we'll deliver improved brine quality and production.
Challenges Ahead
- Due to the solar evaporation process at our potash facilities, it will take multiple evaporation seasons until we see the full benefit from the HB pipeline and Moab potash cavern projects
- Permitting delays for Phase 1 of the HB facility project
- Phase 2 - the in-line pigging system - which is designed to clean the pipeline and prevent scaling, is still being permitted, with construction likely beginning by the end of the year.
- Sand project permitting process is ongoing.
- Decreased water sales in Oilfield Solutions segment
Revenue & Expenses
Visualization of income flow from segment revenue to net income