Earnings
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Corona crisis. Ukraine war. Energy crisis. It was a challenging year for LANXESS in 2022, still the Group increased sales and earnings closing fiscal year 2022 successfully
Read more: Lanxxes increased sales and earnings closing fiscal year 2022 successfully
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Fiscal 2022 impacted by geopolitical crises and a weak economy
Read more: Covestro: Full Year 2022 Results and Annual Press Conference
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Source: Mosaicco
• Full year net income of $3.6 billion, adjusted EBITDA(1) of $6.2 billion
• Cash from operations of $3.9 billion, free cash flow(1) of $2.6 billion
• Retired $550 million of long-term debt and returned $1.9 billion to shareholders through share repurchases and dividends in 2022
• Accelerated share repurchase of $300 million and special dividend of $0.25 per share in the first quarter of 2023
On February 22, 2023, The Mosaic Company reported net income of $3.6 billion and diluted earnings per share (EPS) of $10.06 for full year 2022. Adjusted EBITDA(1) for the year was $6.2 billion and adjusted diluted EPS(1) was $11.01.
The company also reported fourth quarter net income of $523 million and diluted EPS of $1.52. Adjusted EBITDA(1) totaled $1.05 billion for the quarter and adjusted diluted EPS(1) was $1.74.
“Mosaic delivered record results in 2022, and we expect favorable agricultural markets to continue in 2023,” said Joc O’Rourke, President and CEO. “Despite significant volatility through the year, (1)See “Non-GAAP Financial Measures” for additional information and reconciliation.our business was able to deliver strong free cash flow and return significant capital to shareholders, while also reinvesting in the business. Mosaic is well positioned to continue delivering strong results in 2023, thanks to our low cost potash operations, our portfolio of value-added phosphate products, and our leading footprint in Brazil, the world's fastest-growing major agricultural market." Highlights:
• Full year revenues were up 55 percent year-over-year to $19.1 billion, as stronger pricing more than offset lower volumes. The gross margin rate in 2022 was 30 percent, up from 26 percent in 2021.
• Net Income in 2022 totaled $3.6 billion, up 120 percent from 2021. Adjusted EBITDA(1) in 2022 totaled $6.2 billion, up 73 percent from 2021. Cash from operating activities totaled $3.9 billion and Free Cash Flow(1) totaled $2.6 billion.
• Potash operating earnings were $2.8 billion in 2022, up from $837 million in the prior year. Adjusted EBITDA(1) totaled $3.1 billion in 2022, up from $1.3 billion last year. Esterhazy's K3 mine reached its targeted initial annual run-rate of 5.5 million tonnes in the first half of 2022, and output was expanded further with the addition of an eleventh miner, which entered service in the fourth quarter. The decision to stop production at the Colonsay mine in the fourth quarter because of market conditions is expected to be temporary, and a restart is expected in the first half of 2023.
• Phosphate operating earnings were $1.3 billion in 2022, compared to $1.2 billion in 2021. Adjusted EBITDA(1) totaled $2.2 billion in 2022, up from $1.7 billion the prior year. The segment benefited from higher prices more than offsetting lower production and sales volumes, which were impacted by Hurricane Ian, unplanned operational outages, and a slower-than-expected recovery in demand in the second half of the year. Production returned to normal operating rates in February of 2023. MicroEssentials sales volumes totaled 2.8 million tonnes in 2022, with gross margins averaging $33 per tonne higher than commodity fertilizer sales. Performance products now account for 43% of total phosphate segment volumes.
• Mosaic Fertilizantes operating earnings were $910 million in 2022, up from $745 million in 2021. Adjusted EBITDA(1) totaled $1.0 billion in 2022, up from $821 million last year. Mosaic Fertilizantes saw market share for its distribution business grow to approximately 18% in 2022, from 16% in the prior year, and is now Brazil's largest distributor of fertilizer. When combined with direct sales from the production business, total sales volumes accounted for 23% of all fertilizer sales in Brazil.
(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
2023 Capital Allocation Strategy
Mosaic remains committed to a disciplined capital allocation strategy.
• Mosaic anticipates returning virtually all of 2023 generated free cash flow to shareholders through a combination of regular common dividends, special dividends, and share repurchases(2) .
• Mosaic expects to initiate an accelerated share repurchase (ASR) of $300 million in first quarter of 2023. Following execution of the ASR, Mosaic will have repurchased shares worth more than $2.5 billion since the third quarter of 2021. As of February 17, shares outstanding totaled 336.5 million shares.
• Mosaic has a regular common dividend target of $0.80 per share(2) .
• In an effort to further reward long-term shareholders, Mosaic's Board of Directors has approved a special dividend of $0.25 per share to be distributed on March 30, 2023, to shareholders of record on March 15, 2023.
• Consistent with the maintenance of a balance sheet reflective of investment grade metrics, Mosaic retired $550 million of long-term debt in November 2022 and met its previously established goal of reducing longterm debt by $1 billion.
• Management of assets remains a key focus. Mosaic divested Streamsong Resort in January of 2023 for gross proceeds of $160 million.
• Mosaic will continue to evaluate its capital expenditure budget in 2023. Capex is expected to total $1.3-1.4 billion, with a portion of the spend being directed to projects that we expect will improve operational performance in the phosphates segment. Mosaic is also pursuing high-returning projects. Examples include an expansion of MicroEssentials capacity at our Riverview facility, construction of the new Palmeirante blending and distribution facility in Brazil, construction of a purified phosphoric acid test plant in North America, and extending production from the Taquari potash mine in Brazil. On average, these projects are expected to generate an after tax, internal rate of return of approximately 50%.
Visit www.mosaicco.com for complete information
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SABIC announced its financial results for the fourth quarter of 2022. The company’s revenue reached SAR 42.98 billion [$ 11.46 billion] in the fourth quarter of 2022, a decrease of 8% compared with the third quarter of 2022.
