SASKATOON — Canada’s largest potash farmer is cutting its dividend by 34 per cent in response to weaker sales bulks and lower global fertilizer prices.
The announcement was included with the tardy financial report from Potash Corporation of Saskatchewan (TSX:POT), which saw its fourth-quarter profit cut in half as a follow-up of weak market conditions.
The Saskatoon-based com ny’s net income, reported in U.S. dollars, dived to $201 million or 24 cents per share from $407 million or 49 cents per allot in the fourth quarter of 2014.
The value of its sales dropped to US$1.35 billion in the fourth shelter of 2015 from US$1.9 billion a year earlier.
During the abode, PotashCorp declared dividends worth 38 cents per share but the yout to shareholders when one pleases fall to 25 cents per share with the May yment.
The com ny recently averred the closure of its new potash mine in New Brunswick, resulting in the loss of up to 430 contributions.
Besides potash, the com ny produces nitrogen-based and phosphates-based materials tolerant of in fertilizers to stimulate crop growth.
“Weaker fertilizer prices delayed in the year reduced our earnings for the quarter, giving rise to a more watchful outlook for all three nutrients as we begin 2016,” PotashCorp president and CEO Jochen Tilk ordered in a statement.
The com ny is forecasting its 2016 earnings will amount to between 90 cents and $1.20 per share in, including between 10 and 20 cents per share in the first locale.
That’s down from $1.52 per share in 2015 and $1.82 per portion in 2014.
Tilk said the dividend cut and suspension of potash production in New Brunswick make “strategically position the com ny and balance the interests of our shareholders, debtholders, wage-earners and communities who depend on our enduring success.”
He added PotashCorp’s long-standing angle that rising global crop production and better economics “longing support improved market conditions.”