SASKATOON, Saskatchewan — Potash Corp. of Saskatchewan Inc. reported second-quarter earnings of $0.24 per share ($201 million), which included an $0.08 per share income-tax provision recovery, bringing the first-half total to $0.42 per share ($350 million). Results for both the quarter and the first six months surpassed the $0.14 per share ($121 million) and $0.23 per share ($196 million) earned in the respective periods of 2016.

Gross margin for the quarter ($255 million) and first six months ($523 million) exceeded 2016 levels ($243 million and $477 million, respectively), as higher potash contributions more than offset weaker nitrogen and phosphate prices. Despite higher earnings in the second quarter and first six months of 2017, cash from operating activities of $328 million and $551 million trailed last year’s totals, primarily due to changes in accounts receivable and the non-cash impact of our income tax provision recovery.

“In the second quarter, we continued to benefit from stronger potash market conditions and our improved cost position in this nutrient,” said PotashCorp President and Chief Executive Officer Jochen Tilk. “We anticipate more subdued nitrogen and phosphate markets in the second half to offset strength in potash and, as a result, have maintained our full-year earnings guidance range.”

In phosphate, weaker prices more than offset the benefit of lower input costs, resulting in negative gross margin of $26 million for the second quarter and negative $15 million for the first half of 2017. Both totals trailed those of the prior year and included non-cash notable charges of $28 million for the quarter and $32 million for the first half of 2017, which were lower than the comparative periods in 2016.

Sales volumes of 0.6 million tonnes for the quarter were higher than the 0.5 million tonnes sold in the prior year’s second quarter, mainly due to stronger North American agriculture demand, while first-half deliveries of 1.2 million tonnes were flat when compared to the same period in 2016.

Our average realized phosphate price for the quarter was $407 per tonne, down from $485 per tonne in the same period last year as prices for nearly all products decreased — most notably, liquid fertilizers.

Cost of goods sold was $452 per tonne for the second quarter, lower than $506 per tonne in the same period of 2016, primarily due to lower input costs and non-cash notable charges.