Nutrien Ltd. (TSX: NTR) has reported its third-quarter 2024 financial results, highlighting net earnings of $25 million, or $0.04 diluted net earnings per share. Adjusted EBITDA for Q3 2024 reached $1.0 billion, while adjusted net earnings per share were $0.39.
Ken Seitz, Nutrien’s President and CEO, commented, “Nutrien has experienced increased Potash sales volumes and reduced operating costs throughout the first nine months of 2024, leveraging the capabilities of our six-mine network and global distribution channels to meet rising customer demand. We are witnessing strong demand for crop nutrients in North America as we approach the fall application season, following a period of low field activity in Q3.”
“We are committed to advancing strategic initiatives that reinforce the competitive advantages of our business across the agricultural value chain. This includes accelerating our timeline to achieve annual consolidated cost savings, optimizing capital expenditures, growing fertilizer sales volumes, and driving high-return growth opportunities in our Retail segment. These actions position us to achieve long-term improvements in earnings and free cash flow,” Seitz added.
Key Highlights:
- For the first nine months of 2024, Nutrien generated net earnings of $582 million and adjusted EBITDA of $4.3 billion.
- Retail adjusted EBITDA increased to $1.4 billion, driven by higher product margins in North America. However, the company lowered its full-year 2024 Retail adjusted EBITDA guidance to $1.5–$1.6 billion, following reduced pest pressure and lower field activity in Q3.
- Potash adjusted EBITDA decreased to $1.6 billion for the first nine months of 2024, primarily due to lower net selling prices, though offset by record sales volumes of 11.1 million tonnes. Full-year Potash sales volumes guidance was raised to 13.5–13.9 million tonnes due to continued strong global demand.
- Nitrogen adjusted EBITDA dropped to $1.4 billion, impacted by lower net selling prices, although higher sales volumes and improved ammonia production in Trinidad provided some offset.
- Operational efficiency initiatives are on track, with expected consolidated savings of approximately $200 million by 2025, ahead of the initial 2026 target.
- Total capital expenditures for 2024 remain in the range of $2.2–$2.3 billion, with expected capital expenditures for 2025 to be between $2.0–$2.1 billion.
Additionally, Nutrien repurchased 1.5 million shares for approximately $75 million in the second half of 2024 (as of November 5, 2024).
Market Outlook and Guidance:
Agricultural Conditions:
- Favorable growing conditions in the U.S. are expected to lead to record corn and soybean yields in 2024, although prospective crop margins have decreased compared to recent years. Despite this, U.S. Midwest growers are generally in a healthy financial position.
- Fertilizer demand in North America has been bolstered by early harvests and the need to replenish soil nutrients, following lower field activity in Q3.
Crop Nutrient Markets:
- Global potash shipment forecasts have been raised to 70–72 million tonnes for 2024, driven by higher expected demand in Brazil and Southeast Asia. For 2025, potash shipments are forecasted to range from 71–74 million tonnes.
- The global ammonia market remains supported by supply disruptions and higher European natural gas prices, while urea export restrictions from China and strong demand from India and Brazil have tightened the urea market.
- Phosphate markets continue to face tight supply, with Chinese export restrictions and production outages in the U.S. contributing to the strain.
Guidance:
- Retail adjusted EBITDA guidance has been lowered to $1.5–$1.6 billion due to reduced field activity in North America.
- Potash sales volumes guidance has been increased to 13.5–13.9 million tonnes due to strong demand.
- Nitrogen sales volumes guidance has been lowered to 10.6–10.8 million tonnes, impacted by unplanned outages and extended turnarounds in Q3.
- Phosphate sales volume guidance has been reduced to 2.4–2.5 million tonnes, following weather-related production impacts.
Nutrien has also updated its tax rate on adjusted net earnings guidance, lowering it due to changes in its geographic earnings mix.
For more details on Nutrien’s financial results and guidance, please visit the company’s website or refer to the “Non-GAAP Financial Measures” and “Forward-Looking Statements” sections in their official report.
