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After Fertilizer Company Mosaic Reports 654% Profit Increase in the First Quarter, Balances Show New Peak Valuation of 137% in the Second Half

Written by Daiane Souza
Published on 02/08/2022 at 09:03
Updated on 02/08/2022 at 09:05
Após empresa de fertilizantes Mosaic ter alta de 654% de lucro no primeiro trimestre, balanços mostram novo pico de valorização de 137% no segundo semestre
Fonte: Pixabay
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The Mosaic Company Benefited From The High Commodity Prices Following The Outbreak Of The War Between Russia And Ukraine And Thus Increased Its Profit Exponentially. 

According to Canal Rural, Mosaic, a fertilizer company from the United States, reported a net income of US$ 1.18 billion, an increase of at least 684% in the first quarter of this year. With the recent disclosures of the second-quarter financial results from the institution, a new peak valuation of 137% can be noted compared to the same period in 2021.

 The hypervaluation of the fertilizer giant intensified after the start of the  Ukraine’s War Against Russia, which forced Brazilians to depend on other countries for the import of fertilizers necessary for agribusiness beyond the Russians. 

According to an announcement by Valor Econômico at the end of last Monday, August 1, the institution reported a net income of at least  US$ 1 billion due to the recent rise in fertilizer and commodity prices. 

Min — Max (Day) 130.00 – 135.67
Change (Day) -4.17%
Change (Month) -4.17%
Change (2022) +19.94%
Change (52 Weeks) +61.13%
Mosaic’s Rise Exceeds 60% In A Year. Source: Infomoney

Beyond Mosaic: Numerous Companies In The Commodity Sector Report Positive Results  

Below is a list of companies, in addition to Mosaic, that operate in fertilizer production and reported high net profits in the second quarter, along with their respective sectors of activity. 

BP, British Oil Company, Reports The Highest Profit In The Last 14 Years 

Like Shell and Petrobras, which operate in oil and gas, BP, a British oil company, reported one of its highest profits in the last 14 years, exceeding US$ 8 billion, which translates to more than R$ 45 billion when converting dollars to reais. 

Just as the war between Russia and Ukraine led to an increase in commodities related to fertilizers, oil and  gas were the products that exceeded these rises. Despite this, it is estimated that the oil company’s shares and the value of the company may decline in the long term, as historical economic patterns indicate that whenever there is an economic recession, the price of oil falls. 

Gasoline, which for several months remained at around R$ 7 in over 20 Brazilian states, is now priced at about R$ 5.4 in some regions of Santa Catarina (SC). Nevertheless, diesel prices remain high, approaching R$ 8. 

Intelbras Reports Net Revenue Of R$ 1 Billion In The Second Quarter 

Intelbras announced last Friday, July 29, that it achieved net income of R$ 96.776 million and operational revenue of R$ 1 billion following the acquisition of leading companies in renewable and solar energy due to the heightened demand from Brazilians for this new energy matrix before the legal framework that allows anyone installing solar panels before January 2023 to be exempt from ICMS ends. 

Despite the revenue results exceeding expectations, the institution continues to be down 6.52% in its accumulated value on the stock market, Ibovespa. In the last trading session, which took place on Monday, August 1, the company had a negative variation of 1.4%.  Nevertheless, the Investing portal reports that its indicators estimate that Intelbras, a major Santa Catarina technology producer, will have a 36% appreciation. 

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