-German potash and salt miner K+S on Wednesday raised its 2022 core profit outlook, as it expects rising average prices in the agriculture customer segment to outweigh energy, logistics and materials cost increases.
The group, which makes potash fertilisers and salts for cooking, animal feed and de-icing roads, now expects to report full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of 2.3-2.6 billion euros ($2.49-$2.82 billion).
The company, which produces about 11% of the world's potash, an essential nutrient for crops, said its new profit guidance was above a company-provided analyst consensus of 2.16 billion euros.
Previously, K+S expected its full-year core profit to come in between 1.6 and 1.9 billion euros.
Potash prices soared after Russia's invasion of Ukraine on concerns over global supply disruption of the key crop fertiliser.
In March, Chief Executive Burkhard Lohr said the company was 92% hedged against rising energy costs.
The company also expects its adjusted free cash flow for the year to reach 1.0 to 1.2 billion euros, up form a previous forecast of 600 to 800 million euros.
K+S shares were up 4.2% as of 1040 GMT, topping the German mid-cap index and reaching their highest level in 6.5 years.
($1 = 0.9233 euros)