Agrium posts loss, partly due to high gas prices for Nikiski fertilizer plant

Allen Baker

A poor spring planting season continued to drag down results at fertilizer-maker Agrium Inc. The Calgary-based company reported a net loss of $17 million (U.S.) in the third quarter, after making a $14 million profit in the same quarter of 2000.

Agrium owns the big fertilizer plant in Nikiski. High prices for its natural gas feedstock hurt the company’s results in the quarter, as it also liquidated excess inventory at reduced prices. The company also wrote off $5 million in the quarter to shut down a small Illinois plant. Net sales were up 8 percent to $410 million as the Nikiski plant was included in the 2001 quarter but not in the 2000 period.

Agrium also added a plant in Argentina.

Company executives expect an industry rebound in the near future, however.

“Natural gas prices are stabilizing at a lower level,” said John Van Brunt, Agrium’s president and CEO. “Future grain prices are improving and an anticipated return to more normal weather conditions across North America should all lead to a turnaround in 2002.”