Nutrien(US:NTR)2021-11-01 21:53Financial Performance - Nutrien raised its full-year 2021 adjusted EBITDA guidance to $6.9 to $7.1 billion, up from $6.0 to $6.4 billion[12]. - Adjusted net earnings guidance for 2021 increased to $5.85 to $6.10 per share, compared to the previous range of $4.60 to $5.10 per share[12]. - Sales for the three months ended September 30, 2021, reached $6,024 million, a 43% increase from $4,227 million in the same period of 2020[15]. - Adjusted EBITDA for the third quarter of 2021 was $1,642 million, a 145% increase compared to $670 million in Q3 2020[15]. - Free cash flow for the first nine months of 2021 increased by over $1 billion, reaching $2,751 million compared to $1,634 million in the same period of 2020[17]. - Nutrien's gross margin for the nine months ended September 30, 2021, was $3,427 million, a 20% increase from $2,851 million in 2020[21]. - Gross margin for the third quarter reached $816 million, a significant increase of 183% compared to $288 million in Q3 2020, with gross margin per tonne rising to $215[24]. - Adjusted EBITDA for Q3 2021 was $808 million, up 131% from $350 million in the same quarter last year, driven by higher sales volumes and prices[24]. - Q3 2021 sales reached $6,024 million, a significant increase from $4,227 million in Q3 2020, while net earnings attributable to equity holders were $717 million compared to a loss of $587 million in the same period last year[54]. - Adjusted EBITDA for Q3 2021 was $1,642 million, up from $670 million in Q3 2020, reflecting strong operational performance[54]. - Comprehensive income for the nine months ended September 30, 2021, was $1,978 million, compared to $57 million in the same period of 2020[118]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $4,663 million, compared to $2,899 million in 2020, representing a 61% increase[143]. Sales and Market Trends - Nutrien Ag Solutions' crop nutrients sales increased by 53% to $1,194 million in Q3 2021, with a gross margin of $246 million[19]. - Global potash prices are rising due to record demand, with shipments forecasted between 69 and 71 million tonnes for 2021[11]. - The company expects Brazilian growers to increase plantings by 5 to 7 million acres, leading to higher crop input spending[11]. - Net sales for North America increased by 92% to $483 million in Q3 2021, while offshore sales rose by 108% to $705 million, resulting in total net sales of $1,188 million, a 101% increase year-over-year[24]. - Latin America accounted for 48% of sales volumes in Q3 2021, up from 36% in the same period last year, indicating a shift in market demand[29]. - Total consolidated sales for the nine months ended September 30, 2021, reached $20,445 million, a 21% increase from $16,856 million in the same period of 2020[137]. - Net sales for the nine months ended September 30, 2021, were $19,792 million, compared to $16,203 million in 2020, reflecting a 22% year-over-year growth[137]. Cost and Expenses - Overall gas cost per MMBtu increased by 119% to $4.77 in Q3 2021, impacting production costs due to higher North American gas index prices[34]. - Cost of goods sold per tonne increased due to higher raw material input costs, impacting gross margin negatively[39]. - Total cost of goods sold for nitrogen increased to $695 million in Q3 2021 from $482 million in Q3 2020, representing a 44.2% increase[96]. - Cash cost of production per tonne for potash decreased to $66 in Q3 2021 from $53 in Q3 2020, while cash COPM for nitrogen increased to $53 from $47[96][94]. Debt and Cash Flow Management - Cash used in operating activities was $(1,565) million in Q3 2021, a 128% increase compared to $(685) million in Q3 2020[46]. - Short-term debt rose significantly by 689% to $1,255 million as of September 30, 2021, compared to $159 million at the end of 2020[47]. - The company anticipates that internally generated cash flow will be sufficient to meet future capital expenditures and cash requirements[45]. - As of September 30, 2021, total outstanding and committed short-term and long-term debt amounted to $1,255 million, with short-term debt at $128 million and long-term debt at $156 million[50]. - The company expects to reduce long-term debt by approximately $2 billion in the next six months using cash on hand and proceeds from commercial paper issuance[52]. - The company reported a significant reduction in short-term debt, decreasing to $1,255 million from $1,644 million in 2020, indicating better debt management[124]. Shareholder Returns - Dividends paid to shareholders in Q3 2021 amounted to $261 million, slightly up from $257 million in Q3 2020[120]. - A dividend of $0.46 per share was declared for the three months ended September 30, 2021, compared to $0.45 in 2020, with total dividends of $1.38 for the nine months ended September 30, 2021, up from $1.35 in 2020[152]. - The company reported a share repurchase of 2,460,097 shares in the nine months ended September 30, 2021[122]. - The average price per share for repurchases in the three months ended September 30, 2021, was $61.18, with a total cost of $148 million for that period[151]. Operational Highlights - The company operates as the world's largest provider of crop inputs, producing approximately 27 million tonnes of potash, nitrogen, and phosphate products globally[66]. - Retail adjusted EBITDA margin for 2021 was 11%[70]. - Crop nutrients sales volumes increased to 10,562 thousand tonnes in the nine months ended September 30, 2021, compared to 10,047 thousand tonnes in 2020, representing a 5.1% increase[69]. - Crop nutrients selling price per tonne rose to $595 in 2021 from $411 in 2020, a 45% increase[69]. - The company continues to focus on expanding its market presence and enhancing its product offerings to support sustainable food production globally[126].