Nutrien bolsters profit forecast on surging fertilizer prices

Corrects seventh paragraph to show reduction in forecast for potash shipments is global, not company specific

Reuters – Nutrien Ltd on Monday raised its fullyear earnings forecast well above estimates after posting a more than 10fold jump in firstquarter profit, as the worlds largest fertilizer company benefits strongly from soaring prices of crop nutrients.

Prices of essential crop nutrients such as potash and phosphate skyrocketed in the quarter, touching nearrecord levels, as sanctions imposed on major exporter Russia for its invasion of Ukraine disrupted supplies that were already tight.

Demand for fertilizer has also been strong as an inflationinduced surge in prices of major crops is driving farmers to increase production.

“Global agriculture and crop input markets are being impacted by a number of unprecedented supply disruptions that have contributed to higher commodity prices and escalated concerns for global food security,” interim Chief Executive Officer Ken Seitz said in a statement.

Seitz also said Nutrien could potentially expand its lowcost fertilizer production capability.

Shares of the company were up about 3 in extended trading.

The company, however, forecast a cut in global potash shipments for the year, citing supply uncertainties from Russia and Belarus.

Nutrien expects 2022 adjusted earnings of 16.20 to 18.70 per share, compared with its previous forecast of 10.20 to 11.80 per share. Analysts were expecting 15.20 per share, as per Refinitiv data.

Net earnings rose to 1.39 billion, or 2.49 per share, in the quarter ended March 31 from 133 million, or 22 cents per share, a year earlier.

Excluding items, it posted a profit of 2.70 per share, but missed estimates of 2.75.

Earlier, rival Mosaic Co, the worlds largest producer of finished phosphate products, posted a more than sevenfold surge in quarterly profit that narrowly beat estimates.

Mosaic said its potash and phosphate shipments were delayed by poor rail performance, adding that rail cycle times would not likely recover to normal levels until the second half of 2022.

The company earned 2.41 per share, excluding items, while analysts were expecting 2.40.