Mosaic Co (NYSE:MOS) stock rose 5.97% (As on November 8, 11:00:51 AM UTC-4, Source: Google Finance) though the company misses third-quarter profit estimates, hurt by damage from Hurricane Ian and cooling prices of crop nutrients. Prices of nutrients such as phosphates and potash have cooled from the near record highs they touched earlier this year as farmers cut back on fertilizer use to rein in costs. Mosaic, the world’s largest producer of finished phosphate products, saw a 4% drop in production and 10% drop in sales volumes of phosphates as its Tampa, Florida-based operations were damaged by Hurricane Ian as well as resulting rail and port closures. The adjusted earnings in its potash segment more than tripled to $871 million, but earnings in its phosphate segment were flat. Mosaic’s net income more than doubled to $841.7 million in the three months ended Sept. 30. Mosaic Fertilizantes operating earnings totaled $323 million and adjusted EBITDA totaled $343 million in the third quarter of 2022. This compares to operating earnings of $290 million and Adjusted EBITDA of $317 million from the prior year period. • Equity earnings from MWSPC, the joint venture in Saudi Arabia, totaled $72 million in the third quarter and $137 million year-to date, which is excluded from Adjusted EBITDA.

MOS in the third quarter of FY 22 has reported the adjusted earnings per share of $3.22, missing the analysts’ estimates for the adjusted earnings per share of $3.40, as per Refinitiv data. The company had reported the adjusted revenue growth of 56 percent to $5.35 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $5.79 billion. The gross margin rate in the quarter was 28 percent, up from 25 percent in third quarter of 2021. Adjusted EBITDA totaled $1.7 billion, up from the prior year period total of $969 million. The company generated cash flow from operations of $889 million and free cash flow of $587 million.

Additionally, Mosaic returned $1.8 billion to shareholders during the first nine months of 2022, including $1.6 billion of share repurchases, which represents 96% of free cash flow and 58% of net income. The company expects to complete its goal of reducing long-term debt by $1.0 billion with the retirement of $550 million later this month. Mosaic has no plan to further reduce long-term debt. Total expected capital expenditures in 2022 remain unchanged at $1.3 billion.