Nutrien (NTR) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 27.78%. A quarter ago, it was expected that this producer of potash and other fertilizers would post earnings of $0.72 per share when it actually produced earnings of $0.37, delivering a surprise of -48.61%.Over the last fo ...

Blue Potash Evaporation Ponds in Moab, Utah - Aerial halbergman Nutrien Ltd. (NYSE:NTR) dons the hat of a producer as well as a retailer. This Canadian company produces Potash, Nitrogen and Phosphate. In fact, it holds the distinction of being one of the top 3 global producers for each of the three. On the retail side, it sells to over 2,000 locations spanning 7 countries. NTR retail products comprise crop nutrients, crop protection products, seeds and application services. Its geographical footprint is wel ...

GoodLifeStudio/E+ via Getty Images Nutrien Ltd. (NYSE:NTR) is one of the largest and most diversified farm fertilizer manufactures in the world. The good news for investors is share pricing is back to 2018 levels (when its merger was completed and public trading began, before the pandemic), despite a much-improved balance sheet after years of strong operating profitability. In essence, the company is better positioned for the future than six years ago, both from a financial backstop and steady-growth vi ...

Financial Performance - Nutrien reported net sales of $19.5 billion for the Retail segment, $3.8 billion for Nitrogen, and $1.7 billion for Phosphate in 2023[77]. - The company achieved an adjusted EBITDA of $2.4 billion in the Retail segment, $1.9 billion in Nitrogen, and $0.5 billion in Phosphate for the fiscal year ended December 31, 2023[77]. - Nutrien's annual average cash provided by operating activities from 2019 to 2023 was $4.8 billion, indicating strong cash generation capabilities[71]. - The company paid out 20% of its cash flow as dividends and repurchased 33% of its shares during the same period[72]. - Adjusted Net Debt to Adjusted EBITDA ratio is 1.9X with a total adjusted net debt of $1.7 billion in 2023[202]. - Cash returned to shareholders through dividends and share repurchases totaled $2.1 billion in 2023, with 50% allocated to dividends and 50% to share repurchases[208]. - The average dividend yield for 2023 was 3.3%, and a 2% increase in quarterly dividend to $0.54 per share was announced for February 2024[208]. - Nutrien expects to maintain an adjusted net debt/adjusted EBITDA leverage ratio below three times through the cycle, ensuring a strong balance sheet[199]. Market Position and Strategy - Nutrien's market share in the US ag retail industry is 22%, with significant competition from independents and cooperatives[137]. - Brazil was identified as the largest market for Canpotex potash sales in 2023, highlighting the importance of this region for Nutrien's growth strategy[97]. - The agriculture retail industry is highly fragmented, with small and medium-sized competitors dominating the market, emphasizing the need for scale and innovative solutions[130]. - Nutrien completed 23 acquisitions in its core Retail markets, enhancing its market presence[182]. - Completed 23 Retail acquisitions across the US, Australia, and Brazil in 2023[208]. Sustainability and Environmental Initiatives - The company captured and sold at least 1 million tonnes of CO2 annually for the last five years, demonstrating its commitment to sustainability[90]. - Nutrien has a strong focus on environmental stewardship, having planted over half a million trees in 2023 as part of its sustainability initiatives[92]. - Nutrien's capital allocation framework emphasizes sustaining safe operations, maintaining a healthy balance sheet, and providing returns to shareholders through dividends and share repurchases[198]. - The company has doubled its sustainably engaged acres to two million, integrating high-value products and services into its sustainability programming[182]. Production and Supply Chain - Nutrien's potash production facilities in Saskatchewan are positioned to minimize supply risk, with access to the best potash geology globally[83]. - Nutrien operates six low-cost potash mines, which provide flexibility to adjust production in response to market conditions[83]. - Global potash demand for 2023 is estimated between 67 to 68 million tonnes, with expectations for 2024 to recover towards trend levels of 68-71 million tonnes[145][146]. - Global nitrogen demand for 2023 is projected at approximately 155 million tonnes, driven by the essential role of nitrogen in crop yield and quality[123][151]. - US nitrogen fertilizer net imports in the first half of the 2023/2024 fertilizer year decreased by an estimated 55 percent compared to the three-year average, indicating a tight supply and demand balance[155]. - Chinese DAP/MAP exports fell by approximately 30 percent in 2023 compared to 2021 levels due to export restrictions, impacting global phosphate markets[162]. Innovation and Technology - Nutrien is focusing on developing climate-smart agriculture practices to enhance resilience and improve yields under challenging conditions[106]. - The company is leveraging digital technologies and big data to transform agricultural practices and provide insights to growers[108][110]. - Nutrien increased its low-carbon ammonia production capability to 1.2 million tonnes across its Geismar, Redwater, and Joffre sites[194]. - Sales of the micronized sulfur dry phosphate product, MAP+MST, increased by 125 percent compared to 2022 levels, reflecting strong demand for premium products[196]. - Global proprietary seed revenue has grown by over 25% since 2021[240]. Capital Expenditures and Financial Management - Total capital expenditures for sustaining, mine development, and pre-stripping are $1.0 billion, with 84% allocated to sustaining and 16% to mine development and pre-stripping[202]. - Reduced planned capital expenditures by $300 million, providing flexibility in capital allocation[208]. - Maintained a BBB investment-grade credit rating and repaid $500 million in senior notes during the year[208]. Market Trends and Economic Factors - Global crop input sales in 2023 reached approximately $130 billion, with 49% from crop nutrients, 22% from seed, and 29% from crop protection[122]. - In 2024, US corn plantings are expected to range from 91 to 92 million acres, while soybean plantings are anticipated to be between 87 to 88 million acres[134]. - Global grain stocks-to-use ratios remain historically low, impacting grain and oilseed production and exports[133]. - Geopolitical instability continues to pose risks to supply chains and product distribution, potentially affecting operational performance[114][115]. - North American natural gas prices are expected to average approximately $2.50 per MMBtu in 2024, maintaining competitiveness against Europe and Asia[154].

Company and Industry Overview * **Company**: Nutrien Ltd. (NYSE:NTR) * **Industry**: Agriculture and Materials * **Event**: Bank of America Securities 2024 Global Agriculture and Materials Conference * **Date**: February 28, 2024 * **Time**: 9:50 AM ET Potash Market * **Historical Strategy**: Nutrien has maintained a consistent strategy of maintaining share in the potash market as global demand grows, historically holding a 19% to 20% share. * **Supply Disruptions**: In 2021, supply disruptions due to flooding, sanctions, and the war in Ukraine caused a supply crisis and led to potash prices exceeding $1,000 per ton, damaging demand. * **Market Recovery**: Since 2022, demand has been recovering, with global shipments falling from 70 million tons in 2022 to 61 million tons in 2023. In 2024, Nutrien expects demand to grow from 67 million to 68 million tons last year to 68 million to 71 million tons. * **Balanced Market**: Nutrien sees 2024 as a more balanced market, with demand recovery and improved affordability. The company aims to grow share with the market, targeting 14 million to 15 million tons in 2024. * **Investments**: Nutrien has invested in low-cost assets, with an installed capacity of 15 million tons, positioning the company for organic growth as the market recovers. Nitrogen Market * **U.S. Market**: The U.S. Gulf region is experiencing tightness in nitrogen supply, particularly in urea and UAN, due to strong planting expectations and supply constraints. * **Supply Constraints**: Constraints include exports leaving the U.S. or Trinidad, gas supply issues in Trinidad, production issues in the U.S., and logistics interruptions in the Middle East. * **Retail Supply**: Nutrien's retail business is adequately supplied, with inventory levels sufficient through the middle of April and into May. * **Capacity Expansion**: Nutrien plans to increase nitrogen production from 10.4 million tons in 2023 to 11.5 million to 12 million tons in the mid-cycle case through improvements in Trinidad, Borger, and Geismar, and incremental brownfield projects. Retail Business * **Acquisition**: Nutrien acquired a retail organization with a proprietary platform and scale, doubling profitability. * **Market Share**: Nutrien's retail business has a market share of less than 25% in the U.S. market, with opportunities for further consolidation. * **Synergies**: Nutrien leverages its low-cost position, proprietary products, and scale to drive synergies and profitability. * **Brazilian Business**: Nutrien's Brazilian business faced challenges due to market volatility, devaluation of fertilizer and crop protection markets, and inventory management issues. The company is taking a breather from acquiring further in Brazil and focusing on integrating existing acquisitions. Phosphate Business * **Focus**: Nutrien's phosphate business focuses on optimizing the asset base and product mix, with over 50% of phosphates used for non-agricultural purposes. * **MAP+MST**: Nutrien has successfully converted its traditional dry phosphates business to MAP+MST, a sulfur-enhanced MAP product with strong penetration in North America. * **LFP**: Nutrien is monitoring the global discussion around lithium iron phosphate (LFP) and its potential impact on the existing product mix.

Nutrien Ltd. (NYSE:NTR) BMO 33rd Global Metals, Mining and Critical Minerals Conference February 27, 2024 8:00 AM ET Company Participants Ken Seitz - CEO Conference Call Participants Joel Jackson - BMO Capital Markets Joel Jackson Good morning. Welcome to day two of the conference. So our first session this morning is going to be with Nutrien, who is of course the largest global fertilizer producer. Also is a very large retail farm center network. Very happy to welcome Ken Seitz, the CEO of Nutrien. Back a ...

Jacob Bout Thanks, Pedro. Rice is a part of that picture as well. That's playing a role that we think will lead to a positive rebound in demand there. And if you look at our global picture in terms of where we expect demand growth to come from in 2024, Southeast Asia is actually the biggest single contributor to that. At the midpoint, we've got Southeast Asia up by about two million tons from a shipment standpoint, and are optimistic based on what we've seen moving through the fourth quarter of 2023 and so ...

Financial Performance - Nutrien reported fourth quarter 2023 net earnings of $176 million ($0.35 diluted net earnings per share) and adjusted EBITDA of $1.1 billion[3]. - For the full year 2023, Nutrien generated net earnings of $1.3 billion ($2.53 diluted net earnings per share) and adjusted EBITDA of $6.1 billion, both down from record levels in 2022[7]. - Adjusted EBITDA for the full year 2023 decreased by 36% to $1,459 million, primarily due to lower gross margins for crop nutrients and crop protection products[23]. - Net earnings for Q4 2023 were $176 million, a significant drop from $1,118 million in Q4 2022, reflecting a decline of 84%[70]. - Adjusted net earnings for the twelve months ended December 31, 2023, were $2,206 million, down from $7,124 million in 2022, with diluted earnings per share of $4.44 versus $13.19[75]. - The company reported a comprehensive income of $1,363 million for the twelve months ended December 31, 2023, down from $7,510 million in 2022[104]. - Adjusted EBITDA for the three months ended December 31, 2023, was $1,075 million, compared to $2,095 million in the same period of 2022, a decrease of about 48%[119]. Sales and Revenue - Retail adjusted EBITDA for 2023 was $1.5 billion, a decrease attributed to lower gross margins for crop nutrients and crop protection products[7]. - Total sales for the twelve months ended December 31, 2023, were $29,056 million, a decrease of 23.2% compared to $37,884 million in 2022[103]. - Net sales for the twelve months ended December 31, 2023, were $28,082 million, down from $37,012 million in 2022, reflecting a decline of 24.0%[120]. - Sales volumes for nitrogen products were higher in Q4 2023, driven by increased UAN production, despite lower ammonia availability[37]. - Retail sales for crop nutrients decreased by 22% to $1,808 million in Q4 2023 compared to $2,320 million in Q4 2022, with gross margin declining from 19% to 15%[20]. - Crop protection products sales fell by 2% to $960 million in Q4 2023, with gross margin decreasing from 42% to 35%[20]. - Total sales for the three months ended December 31, 2023, were $5,664 million, down from $7,533 million in the same period of 2022, a decrease of approximately 25%[117]. Market Outlook - The company expects retail adjusted EBITDA guidance for 2024 to be between $1.65 billion and $1.85 billion, assuming increased gross margins across major product lines[10]. - Potash sales volume guidance for 2024 is projected between 13.0 and 13.8 million tonnes, reflecting demand growth in offshore markets[16]. - Nitrogen sales volume guidance for 2024 is estimated between 10.6 and 11.2 million tonnes, with expectations of higher operating rates at US and Trinidad plants[16]. - Global potash demand is expected to recover towards trend levels in 2024, with full-year shipments projected between 68 to 71 million tonnes[11]. - Nutrien anticipates a tight nitrogen supply and demand balance in 2024, with net imports down approximately 55% compared to the three-year average[11]. Impairments and Costs - The company recorded a non-cash impairment of $774 million in 2023, primarily related to Retail – South America goodwill and Nitrogen and Phosphate property, plant, and equipment[18]. - The company recognized a $465 million non-cash impairment related to goodwill of South American Retail assets in 2023[25]. - A non-cash impairment of $76 million was recognized for Trinidad property, plant, and equipment in Q4 2023 due to higher expected natural gas costs[37]. - The ammonia controllable cash cost of product manufactured per tonne increased in 2023, primarily due to lower ammonia production[37]. Expenses and Costs Management - Selling expenses increased by 40% to $7 million in Q4 2023 compared to $5 million in Q4 2022[42]. - General and administrative expenses rose by 5% to $104 million in Q4 2023, and by 12% to $364 million for the full year 2023[42][45]. - Finance costs increased by 13% to $213 million in Q4 2023 and by 41% to $793 million for the full year 2023[44][46]. - The effective tax rate on adjusted earnings for 2023 was 34%, up from 25% in 2022[44][46]. - Other expenses surged by 140% to $161 million in Q4 2023, driven by higher asset retirement obligations and foreign exchange losses[42][45]. Shareholder Returns - Nutrien returned $2.1 billion to shareholders in 2023 through dividends and share repurchases, with a quarterly dividend increase to $0.54 per share[7]. - The company repurchased 13,378,189 shares at a cost of $374 million during 2023[117]. - A dividend per share of $0.53 was declared for Q4 2023, an increase from $0.48 in 2022, with a total estimated dividend payment of $265[140]. Production and Operational Efficiency - Natural gas costs per MMBtu decreased by 55% in Q4 2023 to $3.30 from $7.44 in Q4 2022, contributing to lower production costs[35]. - Ammonia production adjusted operating rate improved to 91% in Q4 2023 from 83% in Q4 2022, indicating better production efficiency[62]. - Retail cash operating coverage ratio improved to 68% in 2023 from 55% in 2022, reflecting stronger cash flow management[58]. - The company plans to focus on operational efficiency and cost management in the upcoming year to improve margins and profitability[79].

............ ............. ............ ............ . . This presentation contains certain information which constitutes "financial outlook" and "future-oriented financial information" under applicable Canadian securities laws, including, adjusted net earnings per share, adjusted EBITDA (consolidated and by segment), cash provided by operating activities, depreciation and amortization and effective tax rate on adjusted earnings guidance ranges, the purpose of which is to assist readers in understanding our ...

Nutrien Ltd. (NYSE:NTR) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Jeff Holzman - Vice President, Investor Relations Ken Seitz - President and Chief Executive Officer Pedro Farah - Chief Financial Officer Mark Thompson - Executive Vice President and Chief Commercial Officer Jeff Tarsi - Executive Vice President and President, Global Retail Trevor Williams - Executive Vice President and President, Nitrogen and Phosphate Jason Newton - Chief Economist Conference Call Pa ...