Uralkali has no plans to return to Belarus potash pact
"The price may touch $300 but this level is not sustainable," Uralkali head of sales, Oleg Petrov, told analysts.
The firm sees lower fertilizer prices boosting demand from price-sensitive farmers in Asia. But in the short-term, some potash importers are holding off accepting further orders in anticipation of price developments, the company said.
Uralkali intends to ramp up production capacity to offset the lower prices, seeing output rising to 15 million tonnes by 2020. The company also said it was on track to produce at least 10.5 million tonnes this year and is running close to capacity.
Its first-half net profit fell 53 percent year-on-year to $397 million, missing forecasts due to increased competition and foreign exchange losses. Net revenue was down 29 percent at $1.35 billion.
Uralkali may apply for a seven-year $400 million credit line from Sberbank and a five-year loan from VTB of up to $994 million to refinance its loans, the company said in a separate statement on Tuesday. The firm, whose shareholders will decide on the bank loans on Oct. 22, needs to repay $2 billion in 2014, CFO Belyakov said.
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