(Reuters) – Canada’s Potash Corp of Saskatchewan reported bigger-than-expected revenue on Thursday as it sold more potash at higher prices compared with a year earlier, marking a slow recovery in the oversupplied market.
Potash prices have rebounded modestly since last year but remain low, under pressure from bloated global capacity and soft crop prices. The Saskatoon, Saskatchewan-based fertilizer producer’s revenue rose 6.4 percent to $1.11 billion, beating the average estimate of $1.09 billion.
Potash Corp’s results were mostly in line with expectations, but the company’s second-half prospects may not be bolstered by improving potash market conditions, disappointing some investors, Citi analyst P.J. Juvekar said.
The company left unchanged its guidance for full-year profits of 45 cents to 65 cents per share. U.S.-listed shares of the company rose 1.7 percent in pre-market trading to $18.
Potash demand this year has been robust, helped by low prices and brisk offshore sales by Canpotex Ltd, the export company owned by Potash, Agrium Inc and Mosaic Co. Canpotex signed supply contracts this month with Chinese buyers at a higher price.
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