Mosaic plunges as hurricanes hit Q3 logistics, production results

Mosaic (NYSE:MOS) -9.2% in Tuesday’s trading after reporting much lower than expected Q3 adjusted earnings and revenues, as three hurricanes hurt its Florida phosphate production and selling prices for its products also hurt results.

Q3 net income swung to a profit of $122M from a $4M net loss in the year-earlier quarter, but revenues tumbled 21% Y/Y to $2.8B and adjusted EBITDA sank 25% to $448M, primarily reflecting the impact of lower selling prices.

Q3 phosphate sales volumes fell 12% Y/Y to 1.5M metric tons, and Q3 potash sales volumes slid 9.1% to 2M tons.

Mosaic (MOS) said its phosphate production has returned to full operating capacity and is on track to reach its target yearly run rate by year-end, but the magnitude of the logistical and production problems caused by the hurricanes on Q3 results was worse than expected, Scotiabank analyst Ben Isaacson said.

For Q4, Mosaic (MOS) guided for phosphate volumes of 1.6M-1.8M tons at an average realized selling price of $570-$590/ton, and potash volumes of 2.2M-2.4M tons at an average realized selling price of $200-$220/ton.

The company said it is making progress on the cost reduction plan announced last year and is on track to achieve the targeted $150M run rate by year-end 2025 compared to the 2023 baseline.

Also, Mosaic (MOS) said CFO Clint Freeland plans to retire, to be succeeded by former Vale executive Luciano Siani Pires, who will join Mosaic as CFO designate effective November 18 and become Executive VP and CFO on January 1.