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May 11, 2023 Source: Nutrien news release SASKATOON, Saskatchewan-- Nutrien Ltd. (TSX and NYSE: NTR) announced today its first quarter 2023 results, with net earnings of $0.6 billion ($1.14 diluted net earnings per share). First quarter 2023 adjusted net earnings per share1 was $1.11 and adjusted EBITDA1 was $1.4 billion. "Nutrien delivered adjusted EBITDA of $1.4 billion in the first quarter and continued to demonstrate the advantages of our flexible, low-cost production assets and global distribution network. We invested in initiatives to sustain and grow our asset base and returned $1.1 billion to shareholders during the quarter," commented Ken Seitz, Nutrien's President and CEO. "Crop input demand has strengthened as the spring planting season progresses in the northern hemisphere and higher cost inventory is moving through the channel. We are encouraged by the continued stabilization of fertilizer markets following a year of unprecedented volatility and anticipate increased demand in the second half of 2023 due to strong agriculture fundamentals, improved grower affordability and lower inventory levels. "With fertilizer prices near mid-cycle levels, we expect to generate strong operating cash flows in 2023 and to maintain a balanced and disciplined approach to capital allocation," added Mr. Seitz. Highlights *Nutrien Ag Solutions ("Retail") adjusted EBITDA declined to $(34) million in the first quarter of 2023 primarily due to lower sales and gross margins for crop nutrients and crop protection products compared to the record levels achieved in 2022. Crop nutrient margins were below normalized levels in the first quarter as prices declined and we worked through higher cost inventory. *Potash adjusted EBITDA declined to $676 million in the first quarter of 2023 due to lower net realized selling prices and lower sales volumes. North American sales volumes were impacted by just-in-time buying. Lower offshore demand from customers in Asia was largely offset by record first quarter Canpotex sales volumes to Brazil. *Nitrogen adjusted EBITDA declined to $676 million in the first quarter of 2023 due to lower net realized selling prices for all major nitrogen products. This was partially offset by lower natural gas costs and increased operating rates at our North American nitrogen plants. *Nutrien repurchased 11.8 million shares year-to-date as of March 31, 2023, under its normal course issuer bid programs, for approximately $900 million. The Company's total shares outstanding declined to 496 million as at the end of the first quarter of 2023, representing a 10 percent reduction compared to the same period in 2022. *Nutrien full year 2023 adjusted EBITDA and adjusted net earnings per share guidance1 was revised to $6.5 to $8.0 billion and $5.50 to $7.50 per share, respectively. Market Outlook and Guidance Agriculture and Retail Geopolitical and weather-related challenges continue to impact global agriculture commodity markets, including significant production and export reductions from Ukraine and severe drought conditions in Argentina. The global grain stocks-to-use ratio is projected to end the current growing season at the lowest level in over 25 years. Corn, soybeans and wheat prices have softened recently due to seasonal pressure resulting from the expectation of higher Brazilian and US crop production. However, new crop futures are still approximately 15 percent above the 10-year average and grower margins remain healthy, providing incentive to invest in their crop and boost production. We expect an 8 million acre increase in US major crop planted area in 2023, including an additional 3 million acres of corn, which is supportive of crop input demand. Planting activity is progressing well in North America and fertilizer application rates have been in line with historical average levels and well above rates in the spring of 2022. The combination of strong demand and logistical challenges has tightened North American fertilizer supply. South American crop production has been mixed as record Brazilian soybean production and strong prospects for the safrinha corn crop are balanced against the impacts of severe drought in Argentina. We expect increased application rates for the 2023 summer crop planting season due to improved affordability ratios compared to the previous year. Australian winter crop planting is progressing well, with no major shifts in acreage expected from record 2022 levels. Crop Nutrient Markets To read the entire report click here. Tweet |
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