NYSE-listed fertiliser company Mosaic on Monday reported second-quarter earnings of $97.9-million, on net sales of $2.2-billion and increased its earnings before interest, taxes, depreciation and amortisation (Ebitda) range on strong underlying business performance and lower full-year taxes.

The Plymouth-based company’s net earnings are much lower than the $97.3-million reported in the second quarter of 2017, as a result of costs associated with the acquisition of Vale Fertilizantes. The acquisition had a negative impact of $0.22 a share on second-quarter earnings.

However, CEO Joc O’Rourke said that the group had witnessed positive developments in the potash and phosphate markets and that it expected momentum to continue.

“Strong operational performance across our three business units and constructive market developments are driving improved earnings and cash flow. We are making excellent progress on the transformational initiatives at Mosaic Fertilizantes and are well positioned to benefit from today’s improved business environment,” he said in a press release.

Adjusted earnings a share during the second quarter of 2018 were $0.40, ahead of both last year and the first quarter of 2018.

Mosaic’s net sales in the second quarter of 2018 were $2.2-billion, compared with $1.8-billion last year, primarily driven by the acquisition of Vale Fertilizantes and higher average sales prices in all three operating segments. Operating earnings during the quarter were $196-million, up from $95-million a year ago, driven by higher gross margins in all segments.

Cash flow from operating activities in the second quarter of 2018 was $807-million, compared with $243-million in the prior year.

Mosaic again increased its full-year Ebitda guidance to a range of $1.80-billion to $1.95-billion, up from the previously increased $1.70-billion to $1.90-billion range.

The company has also paid down an additional $200-million of long-term debt subsequent to quarter end, reaching its full-year 2018 debt retirement target of $500-million. O’Rourke said that the firm was ahead of schedule to achieve its debt paydown target of $700-million by 2020.