The K+S Group had to record a significant decline in revenues to €1.8 billion in 1H16, representing a 20% dip.
“Alongside a difficult market environment in the potash business and lower de-icing salt sales volumes, the production standstills at the Werra potash plant had an adverse effect on our business, particularly in the second quarter,” said Norbert Steiner, Chairman of the Board of Executive Directors of K+S Aktiengesellschaft. “We are currently working hard to find additional saline wastewater disposal measures in order to reduce further standstills at the Werra potash plant.”
“We are expanding our specialties business with the acquisition of fertilizer activities in China and this will give us better access to the growth markets in Asia,” Steiner continued. The Company is also making progress with the ‘Salt 2020’ and ‘Fit for the Future’ initiatives.
K+S Group: Revenues and earnings down significantly
The K+S Group had to record a decline in revenues to €1.8 billion in 1H16, representing a 20% dip. Revenues of €732 million in the 2Q were also lower than 2015's €914 million.
In the second quarter, EBIT I of €5 million was almost 92% lower than in 2015.
Werra potash plant
The review of the application submitted by K+S to the Kassel Regional Council in April 2015 to continue deep-well injection until the end of 2021 is ongoing.
Measures to improve production capabilities
In order to maintain production at the Werra potash plant during the drier months with expected lower flow of water in the Werra river and limited deep-well injection volume, the Company is carrying out extensive tests on the feasibility of additional wastewater disposal measures.
Read the article online at: https://www.globalminingreview.com/finance-business/01092016/ks-reports-decline-in-revenues/