Helium Rises with Global Helium Corp.
Global Helium Corp. announced Thursday, August 12 that the company has established a new position in Saskatchewan’s “helium fairway.” Global first established a core area at Vermillion Hills, 150 km northeast of Swift Current and has now added a second core area south of Regina. Global Helium Corp. now has 164,195 hectares of land holdings in Saskatchewan.
“This new acreage significantly expands our land position within the helium fairway. In addition to significant helium prospectivity, southern Saskatchewan has access to road, rail, pipeline and power infrastructure and attractive fiscal terms, including a 4.25% royalty rate. We believe southern Saskatchewan has the potential to be a significant contributor to the global helium market and we are excited to position our company in this area.” said Wes Siemens, president of Global Helium Corp.
Stay tuned for the next in our series, The New Elements, where we examine helium exploration and development in Saskatchewan – coming in our Fall 2021 issue.
K+S Half-Year Financial Report Released
K+S announced released its half-year financial report and Q2 earnings on August 12. Among the highlights:
- Revenues increased to €664 million, up from €590 million in the same quarter in 2020 with EBITDA of €112 million – increased from €53 million in Q2 2020.
- The 2021 outlook is positive with EBITDA forecast increased to between €700 million and €800 million from between €500 million and €600 million previously.
- Higher prices and increased sales in fertilizer was a driver for the reporting period.
“In the second quarter too, we benefited in particular from the positive development of agricultural markets and further reduced our costs,” said Dr. Burkhard Lohr, chairman of the K+S Aktiengesellschaft board. “In the remainder of the year, we expect a continued positive development in the fertilizer business and in industrial products, so that we have once again been able to raise our earnings forecast.”
Nutrien Sees Record Earnings
Nutrien released its Q2 2021 financial results, seeing net earnings of $1.1 billion ($1.94 diluted earnings per share) in the quarter. Q2 adjusted net earnings were $2.08 per share, and adjusted EBITDA was $2.2 billion.
“We delivered record earnings across our global business for the second quarter and first half of 2021 and expect the remainder of the year to contribute to a full year record. We showcased Nutrien’s unique competitive advantages, strong operating performance and the significant leverage to higher fertilizer prices as we focus on our purpose to help growers meet the ever-growing demand for increased food production in a sustainable manner,” said Mayo Schmidt, Nutrien president and CEO on August 9.
Schmidt also noted that the global outlook for crop and fertilizer markets is strong. The company increased its full year 2021 adjusted EBITDA guidance1 by over $1.5 billion.
Among the highlights in the Q2 results, Nutrien saw sales through its digitally-enabled retail platform reach $1.6 billion in the first half of 2021, nearly double the sales compared to the same period in 2020 and it exceeded the full year 2020 results of $1.2 billion in six months.
Nutrien stock prices may also be buoyed by the recently announced U.S sanctions aimed at Belarus potash producer Belaruskali OAO, who control about one fifth of the world’s potash market. The sanctions were not applied to Belarusian Potash Co., where Belaruskali OAO owns a 48 per cent stake. The sanctions could help producers such as Nutrien, Mosaic and BHP with higher prices for the commodity.
Jump in Oil & Gas Revenue for Province
On Tuesday, August 10, Saskatchewan’s August public offering of Crown petroleum and natural gas rights was held, raising $3,124,990.99 – the most revenue raised in a public offering since December 2019. The Estevan area saw the most interest with 44 parcels. This was the third of six offerings for the 21-22 fiscal year, with the next scheduled for October 5, 2021.
SREDA Snapshot Looks Good
SREDA released its Q2 Sector Snapshot with highlights for the sectors in the Saskatoon region. Agriculture and mining stayed relatively flat, with tourism and hospitality still down. Manufacturing, retail sals, construction and housing, science and innovation, and tech were all positive. Among the highlights in Q2 were the announcements of new facilities for VIDO-Intervac and Northern Nutrients, and record venture capital investment into Saskatchewan tech firms Vendasta, 7shifts and Curbie.