The Mosaic Company (NYSE: MOS) announced on Thursday that its North American phosphate operations are expected to be negatively impacted by damage caused by Hurricane Ida.
Wind damage to the Faustina and Uncle Sam facilities from the storm is expected to result in reduced production as repairs are completed over the next 8 to 9 weeks, the company said. The expectations also include estimates of production loss from an August equipment failure at the company’s New Wales facility in Florida.
In the third quarter, relative to historical averages, Mosaic said it expects production to be down by approximately 300,000 tonnes. Fourth quarter operating rates are likely to improve sequentially, but production may still be down from historical averages, it added.
The hurricane also caused navigational issues on the Mississippi River, which could cause congestion during the busy fall application season and create logistical risks for Mosaic’s production.
The company plans to provide an update, including estimated financial impacts of the hurricane, when it reports third quarter results.
Meanwhile, as it completes repairs to operations, Mosaic is also supporting its employees and communities through a $100,000 disaster relief grant to the Capital Area United Way and by providing affected employees with access to funds through the company’s employee-to-employee assistance plan.
Based in Tampa, Mosaic currently operates nine facilities (mines and shafts) across the continent, producing potash and concentrated phosphate crop nutrients. Its products account for 73% and 40% of North America’s phosphate and potash annual production, respectively.
Shares of Mosaic Co advanced 1.9% by noon EDT in New York, giving the company a market value of approximately $12.3 billion.