K+S: production stoppage shorter than expected; shares rise

(CercleFinance.com) - Germany's K+S rose on Tuesday as investors bought shares of the fertiliser maker after it announced that it will increase potash production at its Werra plant by the end of the year.


The company said recent rainfall has raised the water level of the Werra river, meaning that the capacity of the retention basin at the plant has increased.

This means that production will only stop over Christmas - from 24 to 26 December - with full production resuming from 27 December.

This shorter-than-expected production stoppage means that K+S expects that its Q4 2018 EBITDA will only be impacted by roughly 10 million euros in the fourth quarter of 2018, compared to a maximum of 15 million euros previously.

Moreover, K+S says that stoppages are unlikely in the first quarter of 2019 - even in the event of drought - it said, which has prompted its shares to rise 2.2% to 15.6 euros.



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