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 Aug. 3, 2023 Source: Nutrien news release SASKATOON, Saskatchewan--Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2023 results, with net earnings of $448 million ($0.89 diluted net earnings per share), which includes non-cash impairments of $465 million primarily related to our South American Retail goodwill and $233 million related to our Phosphate property, plant and equipment. Second quarter 2023 adjusted net earnings per share1 was $2.53 and adjusted EBITDA1 was $2.5 billion. "Nutrien's results have been impacted by unprecedented volatility in global crop input markets over the last 18 months. We continue to see demand strengthen in our key markets, in particular North America, however the process of recovery has been more uneven in offshore markets," commented Ken Seitz, Nutrien's President and CEO. "We are announcing a number of strategic actions to reduce our controllable costs and enhance free cash flow in 2023 and beyond. This includes an indefinite pause of our potash ramp up and suspension of work on our Geismar clean ammonia project. These actions, along with other operational efficiency initiatives, demonstrate our commitment to disciplined capital allocation and focus on long-term value creation," added Mr. Seitz. Financial Highlights *Generated net earnings of $1.0 billion ($2.03 diluted net earnings per share) and adjusted EBITDA1 of $3.9 billion ($3.63 adjusted net earnings per share) in the first half of 2023, down significantly from the record levels achieved in the first half of 2022. This was primarily due to lower net realized fertilizer prices, offshore Potash sales volumes and Nutrien Ag Solutions ("Retail") earnings. *Retail adjusted EBITDA declined to $1.1 billion in the second quarter primarily due to lower gross margin for crop nutrients and crop protection products. North American crop nutrient sales volumes were up 16 percent in the second quarter compared to the same period in the prior year and per-tonne margins in the US returned to more normalized levels. Crop protection margins were pressured by lower prices for certain commodity products and the impact of selling through higher cost inventory. *Potash adjusted EBITDA declined to $654 million in the second quarter as weaker net realized selling prices and lower offshore sales volumes more than offset higher North American sales volumes. Lower demand from customers in Asia was partially offset by increased Canpotex sales volumes to Brazil. *Nitrogen adjusted EBITDA declined to $569 million in the second quarter due to lower net realized selling prices for all major nitrogen products, which more than offset higher sales volumes and lower gas costs. *Recognized a $465 million non-cash impairment primarily to goodwill relating to our South American Retail assets in the second quarter of 2023, mainly due to the impact of crop input price volatility, more moderate long-term growth assumptions, and higher interest rates. Nutrien also recognized a $233 million non-cash impairment in Phosphate relating to our White Springs property, plant and equipment due to the volatility of forecasted phosphate margins. *Repurchased approximately 13.4 million shares year-to-date as of June 30, 2023, under our normal course issuer bid programs, for approximately $1.0 billion. Cash used for dividends and share repurchases in the first half totaled $1.6 billion. *Full year 2023 adjusted EBITDA and adjusted net earnings per share guidance1 was revised to $5.5 to $6.7 billion and $3.85 to $5.60 per share, respectively. To read the entire report click here. Tweet |
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