Saturday, August 15, 2015

K+S report Q2 2015


K+S, Q2, 2015, front page

The potash and salt mining company K+S arrived with their Q2 report and for me it was once again happy reading. The market was not overexcited with the report which I am.


For the report in full please click here and for the previous summary regarding this great company please go to K+S report Q2 2015 and to find out more about them then please click on analysis of K+S 2015.

They have managed to keep up the revenue increase during also the Q2 and we are still +16%! The earnings are also remained at a high level with over 40% in comparison to 2014 which I did no expect. I thought they would start to push more of the profit into the Legacy project that still needed 1.3 billion during 2015 which they by the look of it did not do. Instead the managers seem to have borrowed 1 billion at a moment when interest rates are as low as they can be so they used the most clever option at hand. Well done! My trust for the K+S  managers are growing. We also see that they salt business did very well during Q2 in terms of earnings. The cuts they performed to slim the business seems to have had an excellent effect.


K+S, Q2, 2015, highlights


Conclusion: K+S is still doing very well. They have managed to secure almost all the cash needed for the Legacy investment and this is good news! We are also now at an EPS of 1.66 € and with the dividend payment of 40-50% I hope to get a bit over 1 € per share in dividend for 2015 and I will of course remain as a shareholder.

2 comments:

Anonymous said...

Hi,

Not sure if you've already seen this: https://global.handelsblatt.com/edition/258/ressort/companies-markets/article/sources-potash-willing-to-go-hostile Let's see if this is true and the fight begins.

Hopefully payday is coming!

Btw thanks for the eQ analysis.

br

Walhroos

Fredrik von Oberhausen said...

Hi Wahlroos,

You are welcome on the eQ analysis!

Yes, I have read about it and I put in a long running sales order at a price that I found reasonable. I keep my fingers crossed that it will be taken.

Thanks for the heads up though!