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(Reuters) -Mosaic Co posted higher second-quarter profit on Monday as a global fertilizer shortage drove up prices of crop nutrients.
Companies such as Mosaic are benefiting from sanctions on Russia and Belarus, the world’s No.2 and 3 fertilizer suppliers. Russia produces 13% of the world’s fertilizers that contain potash, phosphate and nitrogen.
The sanctions have worsened global supply shortfalls of crucial crop nutrients and sent their prices soaring. During the April-June quarter, prices of these nutrients approached levels not seen since the 2008 food crisis, when the prices had hit an all-time high.
Mosaic, the world’s largest producer of finished phosphate products, said net sales in its phosphates segment grew to $1.8 billion from last year’s $1.2 billion.
Net earnings attributable to the world’s fourth-biggest fertilizer producer more than doubled to $1.04 billion, or $2.85 a share, in the quarter ended June 30, from $437.2 million, or $1.14 per share, a year ago.
CF Industries Holdings Inc (NYSE:CF), which overtook Mosaic in market capitalization during the quarter to become the world’s third-biggest fertilizer maker, posted record quarterly profits.
Net income attributable to CF was $1.17 billion, or $5.58 a share, in the quarter ended June 30, from last year’s $246 million, or $1.14 per share.
