Potash Corporation of Saskatchewan is reporting increased profits for its first quarter and predicts even higher profits for the upcoming quarter.
Last year the company joined two other major producers – Agrium and Mosaic – in reducing production and in some cases shutting down mines in an effort to boost prices.
Prices tumbled two years ago when a deal between Russia and Belarus fell apart and they started competing, instead of cooperating, on production and marketing.
Potash Corporation’s profit was $370 million in U.S dollars, an increase of $30 million over the same quarter last year. It said the 8.8 per cent increase in profits came from higher potash prices and lower production costs.
Saskatchewan's potash taxes increased and the company sold less nitrogen as it faced stiffer competition on global markets.
Sales for the three months ended March 31 were nearly $1.67 billion compared with $1.68 billion last year.
The company says that the decline in the value of the Canadian dollar since last year will likely continue to push costs per tonne lower.