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Jun 30, 2024
Intrepid Potash Q2 2024 Earnings Report
Intrepid Potash reported a net loss for Q2 2024, with decreased sales and gross margin compared to the same period in 2023. However, the company saw improvements in Trio® production and cost structure.
Key Takeaways
Intrepid Potash reported a decrease in sales and profitability for Q2 2024 compared to Q2 2023. Sales decreased by 23% to $62.1 million, and the company experienced a net loss of $0.8 million. Despite these challenges, Intrepid saw improvements in its Trio® segment, with increased production rates and decreased costs.
Total sales decreased to $62.1 million, compared to $81.0 million in Q2 2023.
Net loss was $0.8 million (or $0.06 per diluted share), compared to net income of $4.3 million in Q2 2023.
Adjusted EBITDA was $9.2 million, down from $15.8 million in the same prior year period.
Trio® segment gross margin increased to $2.2 million, an increase of approximately $3.3 million sequentially and $1 million year-over-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 expects potash production to be approximately 15% higher than 2023.
Positive Outlook
- Improved brine grades at HB from the Eddy Cavern
- Good early-season evaporation rates, allowed us to extend our spring production season
- Expect 2024 potash production to be approximately 15% higher than 2023
- Increased operating rates from our new continuous miners
- Modified operating schedule have driven significant improvement in both our total and per ton production costs
Challenges Ahead
- Broader potash market looks to be finding its midcycle pricing floor
- Softening conditions in the oilfield services market
- Pausing development on our sand project
- Dedicating our resources to other strategic priorities at this time
- Lower pricing for our key products
Revenue & Expenses
Visualization of income flow from segment revenue to net income