Intrepid Potash Q2 2023 Earnings Report
Key Takeaways
Intrepid Potash reported second quarter 2023 sales of $81.0 million, a 12% decrease from the previous year. Net income totaled $4.3 million, or $0.33 per diluted share, a significant decrease from $23.7 million, or $1.74 per diluted share, in the second quarter of 2022. Adjusted EBITDA was $15.8 million, down from $41.5 million in the same prior year period.
Total sales reached $81.0 million, compared to $91.7 million in Q2 2022, with decreased average net realized sales prices for potash and Trio®.
Net income was $4.3 million, or $0.33 per diluted share, a decrease from $23.7 million, or $1.74 per diluted share, in Q2 2022.
Adjusted EBITDA totaled $15.8 million, compared to $41.5 million in Q2 2022.
Potash sales volumes increased to 79 thousand tons, up from 56 thousand tons in the prior year, while Trio® sales volumes increased to 63 thousand tons, up from 59 thousand tons in the prior year.
Intrepid Potash
Intrepid Potash
Intrepid Potash Revenue by Segment
Forward Guidance
The company anticipates a strong fall application season in the U.S., supported by crop futures prices and attractive fertilizer pricing, expecting robust demand underpinned by solid farmer economics.
Positive Outlook
- Successful project execution, particularly in potash assets, to maximize brine availability and residence time.
- Improvements in injection rates are expected to lead to production benefits next year.
- Strong potash sales volumes, representing an approximately 40% increase compared to the second quarter of 2022.
- Fertilizer pricing continues to drive strong margins for the Company.
- Expectation of robust demand underpinned by solid farmer economics was evident in improved sales volumes in the first half of the year.
Challenges Ahead
- Lower pricing for key products.
- Increase in cost of goods sold.
- Oilfield Solutions segment sales decreased $2.4 million, or 32%, primarily driven by decreases in water sales and surface use revenues.
- Trio segment gross margin totaled $1.2 million, which compares to $13.1 million in the second quarter of 2022.
- Potash production totaled 12 thousand tons in the second quarter of 2023, which compares to 25 thousand tons produced in the same prior year period
Revenue & Expenses
Visualization of income flow from segment revenue to net income