Because of AGU guidance for fertilizer market LIFT the whole sector. POT, IPI, CF, MOS, etc..
CALGARY - Fertilizer producer Agrium Inc. (TSX:AGU) says it is looking forward to record profits as "unprecedented demand for crop inputs."
The Calgary-based company said it expects second-quarter earnings of US$2.80 to $3 per share, up from previous guidance of $1.92 to $2.22, "due to very strong results from both our retail and wholesale operations."
Agrium's results are "particularly impressive given that the North American spring application season has been hampered by excessively cold and wet weather this year," president and CEO Mike Wilson said in a release.
"Continued strong global crop prices have created unprecedented demand for crop inputs and we foresee an extended demand-driven cycle."
The company said its forecast assumes there is no unfavourable financial impact from its Egyptian nitrogen facility EAgrium, at which construction was halted in April"due to permitting and other delays created by the Egyptian government."
A syndicate of banks providing financing for the project has requested the suspension of future draws on a credit facility and says the loan is in default.
Agrium said it expects government approval but has "concerns these issues may not be resolved in the near term, in which event EAgrium's shareholders would be exposed to the loss of their total equity commitment."
Agrium has $165 million invested in the project with a total equity commitment of $280 million.
