Nutrien Delivers Earnings Growth and Expects Strong Market Fundamentals in 2023

 

 Nutrien revised full-year 2022 earnings guidance to reflect lower near-term potash sales volumes and prices; continue to advance strategic growth initiatives based on a positive multi-year view of the fundamentals.

 

Nutrien Ltd. (TSX and NYSE: NTR) announced today its third quarter 2022 results, with net earnings of $1.6 billion ($2.94 diluted net earnings per share), which includes a non-cash impairment reversal of $330 million relating to our Phosphate operations. Third quarter 2022 adjusted net earnings per share 1 were $2.51 and adjusted EBITDA 1 was $2.5 billion.

 

"Nutrien has delivered record earnings in 2022 due to the strength of agriculture fundamentals, higher fertilizer prices and excellent Retail performance. During the third quarter, we saw a temporary reduction in potash purchasing in North America and Brazil, which has impacted our sales volumes and realized prices in the second half of the year. However, the underlying demand drivers remain strong and global fertilizer supply challenges still persist, creating a supportive environment for Nutrien as we look ahead to 2023 and beyond," commented Ken Seitz, Nutrien's President and CEO.

 

"We are focused on efficiently supplying our customers with the products and services they need to help sustainably feed a growing world. We continue to take a multi-year view of the market and remain confident that our additional low-cost potash and nitrogen production capability will be required to meet future demand," added Mr. Seitz.

 

  Highlights:  

 
  • Nutrien generated record net earnings of $6.6 billion and adjusted EBITDA 1 of $10.1 billion in the first nine months of 2022 due to higher realized prices and strong Retail performance, more than offsetting a reduction in fertilizer sales volumes. As a result, cash provided by operating activities improved to $3.4 billion in the first nine months of 2022.
  •  
  • Nutrien revised full-year 2022 adjusted EBITDA guidance 1 and adjusted net earnings per share guidance 1 to $12.2 to $13.2 billion and $13.25 to $14.50 per share, respectively.
  •  
  • Nutrien Ag Solutions ("Retail") delivered record adjusted EBITDA in the first nine months of 2022, due to supportive market conditions in key regions where we operate. Retail cash operating coverage ratio 1 as at September 30, 2022 improved to 55 percent compared to 59 percent for the same period in 2021 driven by higher margins.
  •  
  • Potash adjusted EBITDA increased in the third quarter and the first nine months of 2022 compared to the prior year due to higher net realized selling prices and record offshore sales volumes, more than offsetting lower North American sales volumes.
  •  
  • Nitrogen third quarter and first nine months of 2022 adjusted EBITDA increased compared to the prior year due to higher net realized selling prices that more than offset higher natural gas costs and lower ammonia and urea sales volumes.
  •  
  • In the third quarter of 2022, we recognized a non-cash impairment reversal of $330 million associated with our Phosphate operations and $780 million for the first nine months due to a more favorable outlook for phosphate margins.
  •  
  • Nutrien repurchased approximately 40 million shares year-to-date as of November 1, 2022, under our share repurchase programs, for a total of approximately $3.5 billion. Nutrien plans to allocate approximately $4 billion to share repurchases in 2022. While some repurchases may now extend into the first quarter of 2023 due to lower forecasted operating cash flow in 2022, we still intend on completing our existing 10 percent share repurchase program prior to its expiry in February 2023.
  •  
 
1 These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.
 

  Management's Discussion and Analysis  

 

The following management's discussion and analysis ("MD&A") is the responsibility of management and is dated as of November 2, 2022. The Board of Directors ("Board") of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication, approves this disclosure pursuant to the authority delegated to it by the Board. The term "Nutrien" refers to Nutrien Ltd. and the terms "we", "us", "our", "Nutrien" and "the Company" refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our annual report dated February 17, 2022 ("2021 Annual Report"), which includes our annual audited consolidated financial statements and MD&A, and our annual information form dated February 17, 2022 ("2021 Annual Information Form"), each for the year ended December 31, 2021, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov . No update is provided to the disclosure in our 2021 annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission (the "SEC").

 

This MD&A is based on and should be read in conjunction with the Company's unaudited interim condensed consolidated financial statements as at and for the three and nine months ended September 30, 2022 ("interim financial statements") based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting", unless otherwise noted. This MD&A contains certain non-IFRS financial measures and ratios and forward-looking statements, which are described in the "Non-IFRS Financial Measures" and the "Forward-Looking Statements" sections, respectively.

 

  Market Outlook and Guidance  

 

  Agriculture and Retail  

 
  • Global grain stocks-to-use ratio, excluding China, is projected to decline to the lowest level in more than a quarter century, driven by reduced corn and wheat production expectations in the US and Europe. As a result of historically tight supply and demand balances, spot prices of corn, soybeans and wheat are up 25 to 50 percent compared to the 10-year average and we expect strong futures prices will provide an incentive for growers to boost production in 2023.
  •  
  • The re-opening of the Black Sea to Ukrainian grain exports positively impacted exports from the region but there is uncertainty over the continuation of the United Nations brokered agreement with Russia. The US Department of Agriculture (USDA) projects that Ukrainian grain exports will decline by 44 percent year-over-year in 2023, in large part driven by reduced production levels.
  •  
  • Weather has been favorable in North America and we anticipate that the rapid pace of harvest will support strong fall ammonia demand and normal application rates of potash, phosphate and crop protection products.
  •  
  • South American spring crop planting is proceeding with a mix of planting conditions. Argentina continues to be impacted by La Nina-related drought, while planting conditions in much of Brazil have generally been favorable. We expect that Brazilian soybean acreage will increase by 3 to 4 percent, which is also expected to support a proportional increase in safrinha corn acreage.
  •  

  Crop Nutrient Markets  

 
  • Potash shipments from Belarus are projected to be down 50 to 60 percent and Russia down 20 to 25 percent in 2022 compared to the prior year, in line with our previous expectations. We have lowered our global potash shipment forecast to between 60 and 62 million tonnes in 2022, largely due to the impact of higher-than-expected inventory and cautious buying in North America and Brazil during the second half of 2022.
  •  
  • We expect robust agricultural fundamentals will support increased potash consumption in 2023 and believe pent-up demand will emerge as inventories are drawn down and prices stabilize. We expect potash supply from Eastern Europe will continue to be constrained in 2023, with shipments from Belarus projected to be down 40 to 60 percent and Russia down 15 to 30 percent compared to 2021 levels. Global potash shipments are forecast between 64 to 67 million tonnes in 2023, with projected Nutrien potash sales volumes of approximately 15 million tonnes.
  •  
  • Nitrogen prices continue to be supported by historically high European natural gas prices that have led to significant curtailments of ammonia and downstream nitrogen products. Shifts in global nitrogen trade flows have led to higher US exports and lower import volumes, which we expect will result in a tight North American supply and demand balance entering 2023.
  •  
  • Chinese urea and phosphate export restrictions have limited exports in 2022 and are expected to persist into 2023. The restrictions have led to low Chinese phosphate operating rates, maintaining relatively tight global phosphate supplies, while contributing to lower global sulfur prices and supporting phosphate production margins.
  •  

  Financial Guidance  

 
  • Nutrien revised its full-year 2022 adjusted EBITDA guidance and full-year 2022 adjusted net earnings per share guidance primarily due to lower expected Potash earnings as a result of lower potash sales volumes and realized prices, which more than offset stronger expected Retail earnings. Adjusted net earnings per share guidance includes our plan to allocate approximately $4 billion to share repurchases in 2022.
  •  
  • Nutrien lowered potash sales volume guidance primarily to reflect the impact of the compressed spring application season in North America that resulted in higher inventory carry-over and cautious purchasing.
  •  
  • Nutrien lowered nitrogen sales volume guidance to reflect the impact of Trinidad gas curtailments during the second half of 2022.
  •  

All guidance numbers, including those noted above are outlined in the table below. Refer to page 53 of Nutrien's 2021 Annual Report for related assumptions and sensitivities.

 
                                                                                                         
 

 

 
 

  Guidance Ranges 1 as of  

 
 

 

 
 

  Nov 2, 2022  

 
 

Aug 3, 2022

 
 

(billions of US dollars, except as otherwise noted)

 
 

  Low  

 
 

 

 
 

  High  

 
 

 

 
 

Low

 
 

 

 
 

High

 
 

Adjusted net earnings per share 2

 
 

  13.25  

 
 

 

 
 

  14.50  

 
 

 

 
 

15.80

 
 

 

 
 

17.80

 
 

Adjusted EBITDA 2

 
 

  12.2  

 
 

 

 
 

  13.2  

 
 

 

 
 

14.0

 
 

 

 
 

15.5

 
 

Retail adjusted EBITDA

 
 

  2.15  

 
 

 

 
 

  2.25  

 
 

 

 
 

2.10

 
 

 

 
 

2.20

 
 

Potash adjusted EBITDA

 
 

  5.8  

 
 

 

 
 

  6.2  

 
 

 

 
 

7.6

 
 

 

 
 

8.2

 
 

Nitrogen adjusted EBITDA

 
 

  4.1  

 
 

 

 
 

  4.4  

 
 

 

 
 

4.0

 
 

 

 
 

4.7

 
 

Phosphate adjusted EBITDA (in millions of US dollars)

 
 

  700  

 
 

 

 
 

  800  

 
 

 

 
 

750

 
 

 

 
 

850

 
 

Potash sales tonnes (millions) 3

 
 

  12.5  

 
 

 

 
 

  12.9  

 
 

 

 
 

14.3

 
 

 

 
 

14.9

 
 

Nitrogen sales tonnes (millions) 3

 
 

  10.4  

 
 

 

 
 

  10.5  

 
 

 

 
 

10.6

 
 

 

 
 

11.0

 
 

Depreciation and amortization

 
 

  2.0  

 
 

 

 
 

  2.1  

 
 

 

 
 

2.0

 
 

 

 
 

2.1

 
 

Effective tax rate on adjusted earnings (%)

 
 

  25.0  

 
 

 

 
 

  26.0  

 
 

 

 
 

25.5

 
 

 

 
 

26.5

 
 

Sustaining capital expenditures 4

 
 

  1.3  

 
 

 

 
 

  1.4  

 
 

 

 
 

1.3

 
 

 

 
 

1.4

 
 

1 See the "Forward-Looking Statements" section.

 
 

2 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 

3 Manufactured product only. Nitrogen sales tonnes excludes ESN® products.

 
 

4 This is a supplementary financial measure. See the "Other Financial Measures" section.

 
 

  Consolidated Results  

 
                                                                                                                                                                 
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Sales

 
 

  8,188  

 
 

 

 
 

6,024

 
 

 

 
 

36

 
 

 

 
 

  30,351  

 
 

 

 
 

20,445

 
 

 

 
 

48

 
 

Freight, transportation and distribution

 
 

  204  

 
 

 

 
 

220

 
 

 

 
 

(7)

 
 

 

 
 

  628  

 
 

 

 
 

653

 
 

 

 
 

(4)

 
 

Cost of goods sold

 
 

  4,722  

 
 

 

 
 

3,639

 
 

 

 
 

30

 
 

 

 
 

  17,205  

 
 

 

 
 

13,589

 
 

 

 
 

27

 
 

Gross margin

 
 

  3,262  

 
 

 

 
 

2,165

 
 

 

 
 

51

 
 

 

 
 

  12,518  

 
 

 

 
 

6,203

 
 

 

 
 

102

 
 

Expenses

 
 

  1,056  

 
 

 

 
 

1,108

 
 

 

 
 

(5)

 
 

 

 
 

  3,368  

 
 

 

 
 

3,249

 
 

 

 
 

4

 
 

Net earnings

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

118

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

 

 
 

233

 
 

Adjusted EBITDA 1

 
 

  2,467  

 
 

 

 
 

1,642

 
 

 

 
 

50

 
 

 

 
 

  10,075  

 
 

 

 
 

4,663

 
 

 

 
 

116

 
 

Diluted net earnings per share

 
 

  2.94  

 
 

 

 
 

1.25

 
 

 

 
 

135

 
 

 

 
 

  11.96  

 
 

 

 
 

3.41

 
 

 

 
 

251

 
 

Adjusted net earnings per share 1

 
 

  2.51  

 
 

 

 
 

1.38

 
 

 

 
 

82

 
 

 

 
 

  11.10  

 
 

 

 
 

3.75

 
 

 

 
 

196

 
 

Cash provided by (used in) operating activities

 
 

  878  

 
 

 

 
 

(1,565)

 
 

 

 
 

n/m

 
 

 

 
 

  3,374  

 
 

 

 
 

249

 
 

 

 
 

n/m

 
 

Free cash flow 1

 
 

  1,543  

 
 

 

 
 

862

 
 

 

 
 

79

 
 

 

 
 

  6,770  

 
 

 

 
 

2,751

 
 

 

 
 

146

 
 

Free cash flow including changes in non-cash operating working capital 1

 
 

  450  

 
 

 

 
 

(1,890)

 
 

 

 
 

n/m

 
 

 

 
 

  2,496  

 
 

 

 
 

(544)

 
 

 

 
 

n/m

 
 

1 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 

Net earnings and adjusted EBITDA increased in the third quarter and first nine months of 2022 compared to the same periods in 2021. This was due to higher net realized selling prices from global supply uncertainties across our nutrient businesses and strong Retail performance. In the third quarter of 2022, we recorded a non-cash impairment reversal of $330 million related to our Phosphate operations, which impacted net earnings and brings the total impairment reversal to $780 million for the first nine months of 2022. Cash provided by operating activities increased in the third quarter and first nine months of 2022 compared to the same periods in 2021 due primarily to higher net earnings.

 

  Segment Results  

 

Our discussion of segment results set out on the following pages is a comparison of the results for the three and nine months ended September 30, 2022 to the results for the three and nine months ended September 30, 2021, unless otherwise noted.

 

  Nutrien Ag Solutions ("Retail")  

 
                                                                                                                                                                                                                                                                                                            
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  1,605  

 
 

 

 
 

1,194

 
 

 

 
 

34

 
 

 

 
 

  214  

 
 

 

 
 

246

 
 

 

 
 

(13)

 
 

 

 
 

  13  

 
 

 

 
 

21

 
 

Crop protection products

 
 

  1,716  

 
 

 

 
 

1,469

 
 

 

 
 

17

 
 

 

 
 

  436  

 
 

 

 
 

374

 
 

 

 
 

17

 
 

 

 
 

  25  

 
 

 

 
 

25

 
 

Seed

 
 

  134  

 
 

 

 
 

140

 
 

 

 
 

(4)

 
 

 

 
 

  33  

 
 

 

 
 

56

 
 

 

 
 

(41)

 
 

 

 
 

  25  

 
 

 

 
 

40

 
 

Merchandise

 
 

  241  

 
 

 

 
 

265

 
 

 

 
 

(9)

 
 

 

 
 

  41  

 
 

 

 
 

44

 
 

 

 
 

(7)

 
 

 

 
 

  17  

 
 

 

 
 

17

 
 

Nutrien Financial

 
 

  65  

 
 

 

 
 

54

 
 

 

 
 

20

 
 

 

 
 

  65  

 
 

 

 
 

54

 
 

 

 
 

20

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  244  

 
 

 

 
 

252

 
 

 

 
 

(3)

 
 

 

 
 

  153  

 
 

 

 
 

170

 
 

 

 
 

(10)

 
 

 

 
 

  63  

 
 

 

 
 

67

 
 

Nutrien Financial elimination 1, 2

 
 

  (25)  

 
 

 

 
 

(27)

 
 

 

 
 

(7)

 
 

 

 
 

  (25)  

 
 

 

 
 

(27)

 
 

 

 
 

(7)

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  3,980  

 
 

 

 
 

3,347

 
 

 

 
 

19

 
 

 

 
 

  917  

 
 

 

 
 

917

 
 

 

 
 

 
 

 

 
 

  23  

 
 

 

 
 

27

 
 

Cost of goods sold

 
 

  3,063  

 
 

 

 
 

2,430

 
 

 

 
 

26

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  917  

 
 

 

 
 

917

 
 

 

 
 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 3

 
 

  890  

 
 

 

 
 

808

 
 

 

 
 

10

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Earnings before finance

 

costs and taxes ("EBIT")

 
 

  27  

 
 

 

 
 

109

 
 

 

 
 

(75)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  206  

 
 

 

 
 

182

 
 

 

 
 

13

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  233  

 
 

 

 
 

291

 
 

 

 
 

(20)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 4

 
 

  2  

 
 

 

 
 

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  235  

 
 

 

 
 

291

 
 

 

 
 

(19)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Certain immaterial figures have been reclassified for the three months ended September 30, 2021.

 
 

2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

 
 

3 Includes selling expenses of $821 million (2021 – $746 million).

 
 

4 See Note 2 to the interim financial statements.

 
 
                                                                                                                                                                                                                                                                                                           
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Gross Margin  

 
 

 

 
 

  Gross Margin (%)  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  7,740  

 
 

 

 
 

5,255

 
 

 

 
 

47

 
 

 

 
 

  1,417  

 
 

 

 
 

1,169

 
 

 

 
 

21

 
 

 

 
 

  18  

 
 

 

 
 

22

 
 

Crop protection products

 
 

  6,086  

 
 

 

 
 

5,220

 
 

 

 
 

17

 
 

 

 
 

  1,523  

 
 

 

 
 

1,137

 
 

 

 
 

34

 
 

 

 
 

  25  

 
 

 

 
 

22

 
 

Seed

 
 

  1,861  

 
 

 

 
 

1,819

 
 

 

 
 

2

 
 

 

 
 

  382  

 
 

 

 
 

362

 
 

 

 
 

6

 
 

 

 
 

  21  

 
 

 

 
 

20

 
 

Merchandise

 
 

  755  

 
 

 

 
 

763

 
 

 

 
 

(1)

 
 

 

 
 

  133  

 
 

 

 
 

127

 
 

 

 
 

5

 
 

 

 
 

  18  

 
 

 

 
 

17

 
 

Nutrien Financial

 
 

  205  

 
 

 

 
 

138

 
 

 

 
 

49

 
 

 

 
 

  205  

 
 

 

 
 

138

 
 

 

 
 

49

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

Services and other 1

 
 

  729  

 
 

 

 
 

737

 
 

 

 
 

(1)

 
 

 

 
 

  555  

 
 

 

 
 

570

 
 

 

 
 

(3)

 
 

 

 
 

  76  

 
 

 

 
 

77

 
 

Nutrien Financial elimination 1

 
 

  (113)  

 
 

 

 
 

(76)

 
 

 

 
 

49

 
 

 

 
 

  (113)  

 
 

 

 
 

(76)

 
 

 

 
 

49

 
 

 

 
 

  100  

 
 

 

 
 

100

 
 

 

 
 

  17,263  

 
 

 

 
 

13,856

 
 

 

 
 

25

 
 

 

 
 

  4,102  

 
 

 

 
 

3,427

 
 

 

 
 

20

 
 

 

 
 

  24  

 
 

 

 
 

25

 
 

Cost of goods sold

 
 

  13,161  

 
 

 

 
 

10,429

 
 

 

 
 

26

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

  4,102  

 
 

 

 
 

3,427

 
 

 

 
 

20

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Expenses 2

 
 

  2,733  

 
 

 

 
 

2,467

 
 

 

 
 

11

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBIT

 
 

  1,369  

 
 

 

 
 

960

 
 

 

 
 

43

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  550  

 
 

 

 
 

528

 
 

 

 
 

4

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  1,919  

 
 

 

 
 

1,488

 
 

 

 
 

29

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 3

 
 

  (17)  

 
 

 

 
 

9

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  1,902  

 
 

 

 
 

1,497

 
 

 

 
 

27

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Certain immaterial figures have been reclassified for the nine months ended September 30, 2021.

 
 

2 Includes selling expenses of $2,556 million (2021 – $2,276 million).

 
 

3 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA in the first nine months of 2022 increased due to higher sales and gross margins across nearly all product categories and regions where we operate. This was supported by strong agriculture fundamentals, higher selling prices and growth in proprietary products sales. Adjusted EBITDA decreased in the third quarter of 2022 compared to the prior year's record results as strong crop protection product margins were offset by lower margins in other product categories as well as inflation on certain expense items in 2022. Retail cash operating coverage ratio 1 improved as at September 30, 2022 to 55 percent from 59 percent in the same period in 2021 due to significantly higher gross margin.
  •  
  •   Crop nutrients sales increased in the third quarter and first nine months of 2022 due to higher selling prices. Gross margin and gross margin per tonne increased in the first nine months of 2022 compared to the same period last year due to strategic procurement and the timing of inventory purchasing in the first half of 2022, with a decrease in the third quarter of 2022 due to higher cost inventory. Sales volumes decreased in the first nine months of 2022 due to reduced application resulting from a delayed planting season in North America and earlier engagement in the prior year in a rising price environment.
  •  
  •   Crop protection products sales and gross margin increased in the third quarter and first nine months of 2022, particularly in North America, due to higher prices along with increased sales and gross margin in proprietary products. Gross margin as a percentage of sales increased in the first nine months of 2022, supported by the reliability of our supply chain and strategic procurement in a rising price environment.
  •  
  •   Seed sales and gross margin increased in the first nine months of 2022 due to higher pricing and an increase in proprietary seed margins, with a decrease in the third quarter of 2022 as a result of timing and mix of seed sales compared to the same period in 2021.
  •  
  •   Merchandise gross margin for the first nine months of 2022 increased due to strong margin performance in Australia animal health products from increased flock and herd sizes, with a decrease in the third quarter of 2022 due to an unfavorable foreign exchange rate impact on Australian dollars.
  •  
  •   Nutrien Financial sales increased in the third quarter and first nine months of 2022 due to higher utilization and adoption of our programs and a higher interest-bearing trade receivable balance, driven by strong commodity pricing.
  •  
  •   Services and other decreased in the third quarter and first nine months of 2022 mainly due to lower livestock volumes as wet conditions in Australia impeded movement, along with an unfavorable foreign exchange rate impact on Australian dollars.
  •  
 
1 These (and any related guidance, if applicable) are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section for further information.
 

  Potash  

 
                                                                                                                                                                                                                                              
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  436  

 
 

 

 
 

483

 
 

 

 
 

(10)

 
 

 

 
 

  619  

 
 

 

 
 

1,515

 
 

 

 
 

(59)

 
 

 

 
 

  703  

 
 

 

 
 

319

 
 

 

 
 

120

 
 

Offshore

 
 

  1,568  

 
 

 

 
 

705

 
 

 

 
 

122

 
 

 

 
 

  2,548  

 
 

 

 
 

2,276

 
 

 

 
 

12

 
 

 

 
 

  616  

 
 

 

 
 

310

 
 

 

 
 

99

 
 

 

 
 

  2,004  

 
 

 

 
 

1,188

 
 

 

 
 

69

 
 

 

 
 

  3,167  

 
 

 

 
 

3,791

 
 

 

 
 

(16)

 
 

 

 
 

  633  

 
 

 

 
 

313

 
 

 

 
 

102

 
 

Cost of goods sold

 
 

  386  

 
 

 

 
 

372

 
 

 

 
 

4

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  122  

 
 

 

 
 

98

 
 

 

 
 

24

 
 

Gross margin – total

 
 

  1,618  

 
 

 

 
 

816

 
 

 

 
 

98

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  511  

 
 

 

 
 

215

 
 

 

 
 

138

 
 

Expenses 1

 
 

  352  

 
 

 

 
 

146

 
 

 

 
 

141

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  35  

 
 

 

 
 

35

 
 

 

 
 

2

 
 

EBIT

 
 

  1,266  

 
 

 

 
 

670

 
 

 

 
 

89

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  112  

 
 

 

 
 

131

 
 

 

 
 

(15)

 
 

 

 
 

and amortization – manufactured 3

 
 

  546  

 
 

 

 
 

250

 
 

 

 
 

119

 
 

EBITDA

 
 

  1,378  

 
 

 

 
 

801

 
 

 

 
 

72

 
 

 

 
 

Potash controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  

 
 

 

 
 

7

 
 

 

 
 

(100)

 
 

 

 
 

product manufactured 3

 
 

 

 
 

  70  

 
 

 

 
 

55

 
 

 

 
 

27

 
 

Adjusted EBITDA

 
 

  1,378  

 
 

 

 
 

808

 
 

 

 
 

71

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $348 million (2021 – $128 million).

 
 

2 See Note 2 to the interim financial statements.

 
 

3 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                             
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  1,949  

 
 

 

 
 

1,141

 
 

 

 
 

71

 
 

 

 
 

  2,770  

 
 

 

 
 

4,157

 
 

 

 
 

(33)

 
 

 

 
 

  703  

 
 

 

 
 

275

 
 

 

 
 

156

 
 

Offshore

 
 

  4,573  

 
 

 

 
 

1,475

 
 

 

 
 

210

 
 

 

 
 

  7,149  

 
 

 

 
 

6,412

 
 

 

 
 

11

 
 

 

 
 

  640  

 
 

 

 
 

230

 
 

 

 
 

178

 
 

 

 
 

  6,522  

 
 

 

 
 

2,616

 
 

 

 
 

149

 
 

 

 
 

  9,919  

 
 

 

 
 

10,569

 
 

 

 
 

(6)

 
 

 

 
 

  658  

 
 

 

 
 

248

 
 

 

 
 

165

 
 

Cost of goods sold

 
 

  1,090  

 
 

 

 
 

980

 
 

 

 
 

11

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  110  

 
 

 

 
 

93

 
 

 

 
 

18

 
 

Gross margin – total

 
 

  5,432  

 
 

 

 
 

1,636

 
 

 

 
 

232

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  548  

 
 

 

 
 

155

 
 

 

 
 

254

 
 

Expenses 1

 
 

  975  

 
 

 

 
 

333

 
 

 

 
 

193

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  36  

 
 

 

 
 

35

 
 

 

 
 

2

 
 

EBIT

 
 

  4,457  

 
 

 

 
 

1,303

 
 

 

 
 

242

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  354  

 
 

 

 
 

371

 
 

 

 
 

(5)

 
 

 

 
 

and amortization – manufactured

 
 

  584  

 
 

 

 
 

190

 
 

 

 
 

207

 
 

EBITDA

 
 

  4,811  

 
 

 

 
 

1,674

 
 

 

 
 

187

 
 

 

 
 

Potash controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  

 
 

 

 
 

9

 
 

 

 
 

(100)

 
 

 

 
 

product manufactured

 
 

 

 
 

  56  

 
 

 

 
 

51

 
 

 

 
 

10

 
 

Adjusted EBITDA

 
 

  4,811  

 
 

 

 
 

1,683

 
 

 

 
 

186

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes provincial mining taxes of $959 million (2021 – $293 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2022 due to higher net realized selling prices and strong offshore sales volumes, which more than offset lower North American sales volumes, higher royalties and provincial mining taxes.

  •  
  •   Sales volumes decreased in the third quarter and first nine months of 2022 due to a compressed North American spring application season that resulted in high inventory carry-over along with cautious purchasing. Offshore sales volumes were the highest of any first nine-month period on record due to strong demand and reduced supply from Eastern Europe.

  •  
  •   Net realized selling price increased in the third quarter and first nine months of 2022 due to the impact of supply constraints, in particular related to uncertainty on future supply from Russia and Belarus. Net realized prices decreased from the second quarter of 2022 due to a decline in benchmark pricing, particularly in Brazil and North America.

  •  
  •   Cost of goods sold per tonne in the first nine months of 2022 increased primarily due to higher royalties resulting from increased net realized selling prices. Potash controllable cash cost of product manufactured increased in the third quarter due to lower production volumes and a pull forward of maintenance activities.
  •  

  Canpotex Sales by Market  

 
                                                                    
 

(percentage of sales volumes, except as

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

otherwise noted)

 
 

  2022  

 
 

2021

 
 

Change

 
 

 

 
 

  2022  

 
 

2021

 
 

Change

 
 

Latin America

 
 

  35  

 
 

48

 
 

(13)

 
 

 

 
 

  36  

 
 

38

 
 

(2)

 
 

Other Asian markets 1

 
 

  32  

 
 

28

 
 

4

 
 

 

 
 

  34  

 
 

35

 
 

(1)

 
 

China

 
 

  15  

 
 

7

 
 

8

 
 

 

 
 

  14  

 
 

11

 
 

3

 
 

Other markets

 
 

  10  

 
 

8

 
 

2

 
 

 

 
 

  9  

 
 

10

 
 

(1)

 
 

India

 
 

  8  

 
 

9

 
 

(1)

 
 

 

 
 

  7  

 
 

6

 
 

1

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

 

 
 

  100  

 
 

100

 
 

 

 
 

1 All Asian markets except China and India.

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Nitrogen  

 
                                                                                                                                                                                                                                                               
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  649  

 
 

 

 
 

368

 
 

 

 
 

76

 
 

 

 
 

  701  

 
 

 

 
 

721

 
 

 

 
 

(3)

 
 

 

 
 

  927  

 
 

 

 
 

509

 
 

 

 
 

82

 
 

Urea

 
 

  393  

 
 

 

 
 

316

 
 

 

 
 

24

 
 

 

 
 

  651  

 
 

 

 
 

659

 
 

 

 
 

(1)

 
 

 

 
 

  603  

 
 

 

 
 

480

 
 

 

 
 

26

 
 

Solutions, nitrates and sulfates

 
 

  465  

 
 

 

 
 

289

 
 

 

 
 

61

 
 

 

 
 

  1,274  

 
 

 

 
 

1,141

 
 

 

 
 

12

 
 

 

 
 

  365  

 
 

 

 
 

253

 
 

 

 
 

44

 
 

 

 
 

  1,507  

 
 

 

 
 

973

 
 

 

 
 

55

 
 

 

 
 

  2,626  

 
 

 

 
 

2,521

 
 

 

 
 

4

 
 

 

 
 

  574  

 
 

 

 
 

386

 
 

 

 
 

49

 
 

Cost of goods sold

 
 

  872  

 
 

 

 
 

591

 
 

 

 
 

48

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  333  

 
 

 

 
 

234

 
 

 

 
 

42

 
 

Gross margin – manufactured

 
 

  635  

 
 

 

 
 

382

 
 

 

 
 

66

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  241  

 
 

 

 
 

152

 
 

 

 
 

59

 
 

Gross margin – other 1

 
 

  29  

 
 

 

 
 

24

 
 

 

 
 

21

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  54  

 
 

 

 
 

50

 
 

 

 
 

8

 
 

Gross margin – total

 
 

  664  

 
 

 

 
 

406

 
 

 

 
 

64

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (50)  

 
 

 

 
 

(1)

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured 2

 
 

  295  

 
 

 

 
 

202

 
 

 

 
 

46

 
 

EBIT

 
 

  714  

 
 

 

 
 

407

 
 

 

 
 

75

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  141  

 
 

 

 
 

125

 
 

 

 
 

13

 
 

 

 
 

product manufactured 2

 
 

 

 
 

  62  

 
 

 

 
 

53

 
 

 

 
 

17

 
 

EBITDA/ Adjusted EBITDA

 
 

  855  

 
 

 

 
 

532

 
 

 

 
 

61

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $264 million (2021 – $128 million) less cost of goods sold of $235 million (2021 – $104 million).

 
 

2 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                                                                                   
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  1,952  

 
 

 

 
 

874

 
 

 

 
 

123

 
 

 

 
 

  1,939  

 
 

 

 
 

2,129

 
 

 

 
 

(9)

 
 

 

 
 

  1,007  

 
 

 

 
 

411

 
 

 

 
 

145

 
 

Urea

 
 

  1,457  

 
 

 

 
 

911

 
 

 

 
 

60

 
 

 

 
 

  2,052  

 
 

 

 
 

2,235

 
 

 

 
 

(8)

 
 

 

 
 

  710  

 
 

 

 
 

407

 
 

 

 
 

74

 
 

Solutions, nitrates and sulfates

 
 

  1,440  

 
 

 

 
 

743

 
 

 

 
 

94

 
 

 

 
 

  3,495  

 
 

 

 
 

3,526

 
 

 

 
 

(1)

 
 

 

 
 

  412  

 
 

 

 
 

211

 
 

 

 
 

95

 
 

 

 
 

  4,849  

 
 

 

 
 

2,528

 
 

 

 
 

92

 
 

 

 
 

  7,486  

 
 

 

 
 

7,890

 
 

 

 
 

(5)

 
 

 

 
 

  648  

 
 

 

 
 

320

 
 

 

 
 

103

 
 

Cost of goods sold

 
 

  2,351  

 
 

 

 
 

1,628

 
 

 

 
 

44

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  314  

 
 

 

 
 

206

 
 

 

 
 

52

 
 

Gross margin - manufactured

 
 

  2,498  

 
 

 

 
 

900

 
 

 

 
 

178

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  334  

 
 

 

 
 

114

 
 

 

 
 

193

 
 

Gross margin – other 1

 
 

  84  

 
 

 

 
 

72

 
 

 

 
 

17

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  54  

 
 

 

 
 

52

 
 

 

 
 

4

 
 

Gross margin – total

 
 

  2,582  

 
 

 

 
 

972

 
 

 

 
 

166

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (105)  

 
 

 

 
 

(1)

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured

 
 

  388  

 
 

 

 
 

166

 
 

 

 
 

134

 
 

EBIT

 
 

  2,687  

 
 

 

 
 

973

 
 

 

 
 

176

 
 

 

 
 

Ammonia controllable cash cost of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  403  

 
 

 

 
 

409

 
 

 

 
 

(1)

 
 

 

 
 

product manufactured

 
 

 

 
 

  59  

 
 

 

 
 

52

 
 

 

 
 

13

 
 

EBITDA

 
 

  3,090  

 
 

 

 
 

1,382

 
 

 

 
 

124

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  

 
 

 

 
 

5

 
 

 

 
 

(100)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  3,090  

 
 

 

 
 

1,387

 
 

 

 
 

123

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other nitrogen (including ESN®) and purchased products and comprises net sales of $892 million (2021 – $512 million) less cost of goods sold of $808 million (2021 – $440 million).

 
 

2 See Note 2 to the interim financial statements.

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2022 primarily due to higher net realized selling prices and higher earnings from equity-accounted investees, which more than offset higher natural gas costs and lower ammonia and urea volumes.

  •  
  •   Sales volumes increased in the third quarter of 2022 due to strong demand and higher offshore urea ammonium nitrate (UAN) sales that more than offset the impact of gas curtailments in Trinidad. Sales volumes in the first nine months of 2022 decreased due to unplanned plant outages and a compressed North American spring application season.

  •  
  •   Net realized selling price in the third quarter and first nine months of 2022 were higher due to strong benchmark prices resulting from tight global supply and higher energy prices in key nitrogen producing regions. Net realized selling prices decreased from the second quarter of 2022 due to a seasonal reset in benchmark prices that resulted in lower Nitrogen summer fill pricing.

  •  
  •   Cost of goods sold per tonne in the third quarter and first nine months of 2022 increased primarily due to higher natural gas, raw material and other input costs. Ammonia   controllable cash cost of product manufactured increased in the third quarter and first nine months due to higher input costs, mainly electricity costs.
  •  

  Natural Gas Prices in Cost of Production  

 
                                                                                        
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(US dollars per MMBtu, except as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Overall gas cost excluding realized derivative impact

 
 

  8.33  

 
 

 

 
 

4.77

 
 

 

 
 

75

 
 

 

 
 

  7.92  

 
 

 

 
 

3.92

 
 

 

 
 

102

 
 

Realized derivative impact

 
 

  (0.09)  

 
 

 

 
 

0.01

 
 

 

 
 

n/m

 
 

 

 
 

  (0.06)  

 
 

 

 
 

0.02

 
 

 

 
 

n/m

 
 

Overall gas cost

 
 

  8.24  

 
 

 

 
 

4.78

 
 

 

 
 

72

 
 

 

 
 

  7.86  

 
 

 

 
 

3.94

 
 

 

 
 

99

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average NYMEX

 
 

  8.20  

 
 

 

 
 

4.01

 
 

 

 
 

104

 
 

 

 
 

  6.77  

 
 

 

 
 

3.18

 
 

 

 
 

113

 
 

Average AECO

 
 

  4.46  

 
 

 

 
 

2.83

 
 

 

 
 

58

 
 

 

 
 

  4.34  

 
 

 

 
 

2.48

 
 

 

 
 

75

 
 
  •   Natural gas prices   in our cost of production increased in the third quarter and first nine months of 2022 as a result of higher North American gas index prices and increased gas costs in Trinidad, where our gas prices are linked to ammonia benchmark prices.
  •  

  Phosphate  

 
                                                                                                                                                                                                                                                                                          
 

 

 
 

  Three Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  375  

 
 

 

 
 

269

 
 

 

 
 

39

 
 

 

 
 

  479  

 
 

 

 
 

428

 
 

 

 
 

12

 
 

 

 
 

  782  

 
 

 

 
 

628

 
 

 

 
 

25

 
 

Industrial and feed

 
 

  192  

 
 

 

 
 

132

 
 

 

 
 

45

 
 

 

 
 

  161  

 
 

 

 
 

192

 
 

 

 
 

(16)

 
 

 

 
 

  1,198  

 
 

 

 
 

689

 
 

 

 
 

74

 
 

 

 
 

  567  

 
 

 

 
 

401

 
 

 

 
 

41

 
 

 

 
 

  640  

 
 

 

 
 

620

 
 

 

 
 

3

 
 

 

 
 

  886  

 
 

 

 
 

648

 
 

 

 
 

37

 
 

Cost of goods sold

 
 

  445  

 
 

 

 
 

300

 
 

 

 
 

48

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  695  

 
 

 

 
 

484

 
 

 

 
 

44

 
 

Gross margin - manufactured

 
 

  122  

 
 

 

 
 

101

 
 

 

 
 

21

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  191  

 
 

 

 
 

164

 
 

 

 
 

16

 
 

Gross margin – other 1

 
 

  (8)  

 
 

 

 
 

7

 
 

 

 
 

n/m

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  75  

 
 

 

 
 

63

 
 

 

 
 

19

 
 

Gross margin – total

 
 

  114  

 
 

 

 
 

108

 
 

 

 
 

6

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (311)  

 
 

 

 
 

12

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured 3

 
 

  266  

 
 

 

 
 

227

 
 

 

 
 

17

 
 

EBIT

 
 

  425  

 
 

 

 
 

96

 
 

 

 
 

343

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  48  

 
 

 

 
 

39

 
 

 

 
 

23

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  473  

 
 

 

 
 

135

 
 

 

 
 

250

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  (330)  

 
 

 

 
 

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  143  

 
 

 

 
 

135

 
 

 

 
 

6

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and comprises net sales of $84 million (2021 – $47 million) less cost of goods sold of $92 million (2021 – $40 million).

 
 

2 See Notes 2 and 3 to the interim financial statements. Includes impairment reversal of assets of $330 million (2021 – nil).

 
 

3 This is a non-IFRS financial measure. See the "Non-IFRS Financial Measures" section.

 
 
                                                                                                                                                                                                                                                                                         
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except

 
 

  Dollars  

 
 

 

 
 

  Tonnes (thousands)  

 
 

 

 
 

  Average per Tonne  

 
 

as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

% Change

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  1,093  

 
 

 

 
 

731

 
 

 

 
 

50

 
 

 

 
 

  1,305  

 
 

 

 
 

1,331

 
 

 

 
 

(2)

 
 

 

 
 

  837  

 
 

 

 
 

549

 
 

 

 
 

52

 
 

Industrial and feed

 
 

  551  

 
 

 

 
 

365

 
 

 

 
 

51

 
 

 

 
 

  542  

 
 

 

 
 

577

 
 

 

 
 

(6)

 
 

 

 
 

  1,017  

 
 

 

 
 

633

 
 

 

 
 

61

 
 

 

 
 

  1,644  

 
 

 

 
 

1,096

 
 

 

 
 

50

 
 

 

 
 

  1,847  

 
 

 

 
 

1,908

 
 

 

 
 

(3)

 
 

 

 
 

  890  

 
 

 

 
 

575

 
 

 

 
 

55

 
 

Cost of goods sold

 
 

  1,157  

 
 

 

 
 

853

 
 

 

 
 

36

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  626  

 
 

 

 
 

448

 
 

 

 
 

40

 
 

Gross margin – manufactured

 
 

  487  

 
 

 

 
 

243

 
 

 

 
 

100

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  264  

 
 

 

 
 

127

 
 

 

 
 

108

 
 

Gross margin – other 1

 
 

  (10)  

 
 

 

 
 

15

 
 

 

 
 

n/m

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  70  

 
 

 

 
 

59

 
 

 

 
 

20

 
 

Gross margin – total

 
 

  477  

 
 

 

 
 

258

 
 

 

 
 

85

 
 

 

 
 

Gross margin excluding depreciation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Income) expenses

 
 

  (739)  

 
 

 

 
 

26

 
 

 

 
 

n/m

 
 

 

 
 

and amortization – manufactured

 
 

  334  

 
 

 

 
 

186

 
 

 

 
 

80

 
 

EBIT

 
 

  1,216  

 
 

 

 
 

232

 
 

 

 
 

424

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

  130  

 
 

 

 
 

112

 
 

 

 
 

16

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

EBITDA

 
 

  1,346  

 
 

 

 
 

344

 
 

 

 
 

291

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjustments 2

 
 

  (780)  

 
 

 

 
 

 
 

 

 
 

n/m

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted EBITDA

 
 

  566  

 
 

 

 
 

344

 
 

 

 
 

65

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

1 Includes other phosphate and purchased products and comprises net sales of $232 million (2021 – $140 million) less cost of goods sold of $242 million (2021 – $125 million).

 
 

2 See Notes 2 and 3 to the interim financial statements. Includes impairment reversal of assets of $780 million (2021 – nil).

 
 
  •   Adjusted EBITDA increased in the third quarter and first nine months of 2022 mainly due to higher net realized selling prices, which more than offset higher raw material costs. Included with expenses in the third quarter of 2022, we recognized a $330 million non-cash impairment of assets reversal, which is deducted from adjusted EBITDA. This brings the total impairment reversal to $780 million for the first nine months of 2022 and is due to a more favorable outlook for phosphate margins.
  •  
  •   Sales volumes increased in the third quarter of 2022 due to strong offshore fertilizer sales, offsetting lower industrial sales that were impacted by an unplanned plant outage. Sales volumes in the first nine months of 2022 decreased due to a condensed North American spring application season and lower production volumes.
  •  
  •   Net realized selling price increased in the third quarter and first nine months of 2022 aligned with the increase in global benchmark prices. Industrial and feed net realized selling prices increased to a greater extent than fertilizer prices in the third quarter of 2022, which reflects the typical lag in industrial and feed price realizations relative to spot fertilizer prices.
  •  
  •   Cost of goods sold per tonne increased in the third quarter and first nine months of 2022 primarily due to significantly higher sulfur and ammonia input costs.
  •  

  Corporate and Others  

 
                                                                                                                             
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Selling expenses

 
 

  (2)  

 
 

 

 
 

(9)

 
 

 

 
 

(78)

 
 

 

 
 

  (6)  

 
 

 

 
 

(24)

 
 

 

 
 

(75)

 
 

General and administrative expenses

 
 

  80  

 
 

 

 
 

58

 
 

 

 
 

38

 
 

 

 
 

  227  

 
 

 

 
 

182

 
 

 

 
 

25

 
 

Share-based compensation expense

 
 

  39  

 
 

 

 
 

64

 
 

 

 
 

(39)

 
 

 

 
 

  122  

 
 

 

 
 

125

 
 

 

 
 

(2)

 
 

Other expenses

 
 

  59  

 
 

 

 
 

30

 
 

 

 
 

97

 
 

 

 
 

  160  

 
 

 

 
 

141

 
 

 

 
 

13

 
 

EBIT

 
 

  (176)  

 
 

 

 
 

(143)

 
 

 

 
 

23

 
 

 

 
 

  (503)  

 
 

 

 
 

(424)

 
 

 

 
 

19

 
 

Depreciation and amortization

 
 

  19  

 
 

 

 
 

12

 
 

 

 
 

58

 
 

 

 
 

  55  

 
 

 

 
 

34

 
 

 

 
 

62

 
 

EBITDA

 
 

  (157)  

 
 

 

 
 

(131)

 
 

 

 
 

20

 
 

 

 
 

  (448)  

 
 

 

 
 

(390)

 
 

 

 
 

15

 
 

Adjustments 1

 
 

  63  

 
 

 

 
 

89

 
 

 

 
 

(29)

 
 

 

 
 

  230  

 
 

 

 
 

232

 
 

 

 
 

(1)

 
 

Adjusted EBITDA

 
 

  (94)  

 
 

 

 
 

(42)

 
 

 

 
 

124

 
 

 

 
 

  (218)  

 
 

 

 
 

(158)

 
 

 

 
 

38

 
 

1 See Note 2 to the interim financial statements.

 
 
  •   General and administrative expenses were higher in the third quarter and first nine months of 2022 compared to the same periods in 2021 mainly due to increased depreciation expense, higher donations and higher information technology-related expenses.
  •  
  •   Other expenses were higher in the third quarter and first nine months of 2022 compared to the same periods in 2021 mainly due to higher foreign exchange losses related to our US dollar denominated liabilities in our South American operations and higher information technology project-related costs. This was partially offset by the absence of cloud computing related expenses from our change in accounting policy and lower COVID-19 related expenses.
  •  

  Finance Costs, Income Taxes and Other Comprehensive (Loss) Income  

 
                                                    
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Finance costs

 
 

  136  

 
 

 

 
 

122

 
 

 

 
 

11

 
 

 

 
 

  375  

 
 

 

 
 

367

 
 

 

 
 

2

 
 

Income tax expense

 
 

  487  

 
 

 

 
 

209

 
 

 

 
 

133

 
 

 

 
 

  2,206  

 
 

 

 
 

615

 
 

 

 
 

259

 
 

Other comprehensive (loss) income

 
 

  (230)  

 
 

 

 
 

(79)

 
 

 

 
 

191

 
 

 

 
 

  (296)  

 
 

 

 
 

6

 
 

 

 
 

n/m

 
 
  •   Finance costs were higher in the third quarter and first nine months of 2022 compared to the same periods in 2021 mainly due to higher interest rates and a higher short-term debt balance, mostly offset by a lower long-term debt balance resulting from the early extinguishment of a portion of our long-term debt in the fourth quarter of 2021.
  •  
  •   Income tax expense was higher as a result of higher earnings in the third quarter and first nine months of 2022 compared to the same periods in 2021.
  •  
  •   Other comprehensive (loss) income is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. ("Sinofert"). In the third quarter and first nine months of 2022, we had fair value losses on our investment in Sinofert due to share price decreases, compared to fair value gains due to share price increases in the same periods of 2021. In the third quarter and first nine months of 2022, we had higher losses on foreign currency translation of our Retail operations, mainly in Australia and Canada compared to the same periods in 2021. These currencies depreciated relative to the US dollar as at September 30, 2022 compared to June 30, 2022 and December 31, 2021 levels, which led to losses in the third quarter and the first nine months of 2022. This was partially offset by a net actuarial gain on our defined benefit pension plans in the third quarter of 2022.
  •  

  Liquidity and Capital Resources  

 

  Sources and Uses of Liquidity  

 

We continued to manage our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under new or existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures, planned growth and development activities, and other cash requirements for the foreseeable future. Refer to the "Capital Structure and Management" section for details on our existing long-term debt and credit facilities.

 

  Sources and Uses of Cash  

 
                                                                            
 

(millions of US dollars, except as otherwise

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

% Change

 
 

Cash provided by (used in) operating activities

 
 

  878  

 
 

 

 
 

(1,565)

 
 

 

 
 

n/m

 
 

 

 
 

  3,374  

 
 

 

 
 

249

 
 

 

 
 

n/m

 
 

Cash used in investing activities

 
 

  (705)  

 
 

 

 
 

(523)

 
 

 

 
 

35

 
 

 

 
 

  (1,679)  

 
 

 

 
 

(1,342)

 
 

 

 
 

25

 
 

Cash (used in) provided by financing activities

 
 

  (29)  

 
 

 

 
 

757

 
 

 

 
 

n/m

 
 

 

 
 

  (1,319)  

 
 

 

 
 

117

 
 

 

 
 

n/m

 
 

Effect of exchange rate changes on cash and cash equivalents

 
 

  (32)  

 
 

 

 
 

(20)

 
 

 

 
 

60

 
 

 

 
 

  (52)  

 
 

 

 
 

(35)

 
 

 

 
 

49

 
 

Increase (decrease) in cash and cash equivalents

 
 

  112  

 
 

 

 
 

(1,351)

 
 

 

 
 

n/m

 
 

 

 
 

  324  

 
 

 

 
 

(1,011)

 
 

 

 
 

n/m

 
 
      
 

  Cash provided by (used in) operating activities  

 
 
  • Cash provided by operating activities was higher in the third quarter and first nine months of 2022 compared to the same periods in 2021 due to higher net earnings driven by higher selling prices from global supply uncertainties, offset by working capital requirements.
  •  
 

  Cash used in investing activities  

 
 
  • Cash used in investing activities in the third quarter and first nine months of 2022 was higher compared to the same periods in 2021 mainly due to higher spending to maintain the safety and reliability of our assets and to increase our potash production capabilities.
  •  
 

  Cash (used in) provided by financing activities  

 
 
  • Cash used in financing activities in the third quarter and first nine months of 2022 was higher compared to the same periods in 2021 due to increased share repurchases, partially offset with increased commercial paper and credit facility drawdowns to temporarily finance working capital requirements.
  •  
 

  Financial Condition Review  

 

The following balance sheet categories contain variances that are considered material:

 
                                                                                                                                              
 

 

 
 

  As at  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(millions of US dollars, except as otherwise noted)

 
 

  September 30, 2022  

 
 

 

 
 

December 31, 2021

 
 

 

 
 

$ Change

 
 

 

 
 

% Change

 
 

  Assets  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  823  

 
 

 

 
 

499

 
 

 

 
 

324

 
 

 

 
 

65

 
 

Receivables

 
 

  8,591  

 
 

 

 
 

5,366

 
 

 

 
 

3,225

 
 

 

 
 

60

 
 

Inventories

 
 

  6,545  

 
 

 

 
 

6,328

 
 

 

 
 

217

 
 

 

 
 

3

 
 

Prepaid expenses and other current assets

 
 

  737  

 
 

 

 
 

1,653

 
 

 

 
 

(916)

 
 

 

 
 

(55)

 
 

Property, plant and equipment

 
 

  21,022  

 
 

 

 
 

20,016

 
 

 

 
 

1,006

 
 

 

 
 

5

 
 

  Liabilities and Equity  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

  4,454  

 
 

 

 
 

1,560

 
 

 

 
 

2,894

 
 

 

 
 

186

 
 

Current portion of long-term debt

 
 

  1,016  

 
 

 

 
 

545

 
 

 

 
 

471

 
 

 

 
 

86

 
 

Payables and accrued charges

 
 

  8,760  

 
 

 

 
 

10,052

 
 

 

 
 

(1,292)

 
 

 

 
 

(13)

 
 

Long-term debt

 
 

  7,020  

 
 

 

 
 

7,521

 
 

 

 
 

(501)

 
 

 

 
 

(7)

 
 

Deferred income tax liabilities

 
 

  3,489  

 
 

 

 
 

3,165

 
 

 

 
 

324

 
 

 

 
 

10

 
 

Asset retirement obligations and accrued environmental costs

 
 

  1,320  

 
 

 

 
 

1,566

 
 

 

 
 

(246)

 
 

 

 
 

(16)

 
 

Share capital

 
 

  14,588  

 
 

 

 
 

15,457

 
 

 

 
 

(869)

 
 

 

 
 

(6)

 
 

Accumulated other comprehensive loss

 
 

  (498)  

 
 

 

 
 

(146)

 
 

 

 
 

(352)

 
 

 

 
 

241

 
 

Retained earnings

 
 

  11,787  

 
 

 

 
 

8,192

 
 

 

 
 

3,595

 
 

 

 
 

44

 
 
  • Explanations for changes in Cash and cash equivalents are in the "Sources and Uses of Cash" section.
  •  
  •   Receivables increased due to higher sales across all of our segments as a result of higher crop nutrient net realized selling prices consistent with higher benchmark pricing, as well as higher Retail vendor rebates receivables.
  •  
  •   Inventories increased primarily due to higher cost to produce and/or purchase inventory across all our segments. We held higher than average levels of finished products inventory in our Nitrogen and Phosphate segments, resulting from timing of sales, turnarounds at our Nitrogen facilities at year-end and higher input costs. This was partially offset by a decrease in inventory in our Retail segment driven by seasonality. Generally, we carry higher inventory levels at year-end and during the early part of the year in preparation for the upcoming planting and application seasons. Throughout the year, inventory levels decrease as we sell to our customers.
  •  
  •   Prepaid expenses and other current assets decreased due to the drawdown of prepaid inventory where Retail typically prepays for products at year-end and takes possession of inventory throughout the year.
  •  
  •   Property, plant and equipment increased due to impairment reversals in the Phosphate segment.
  •  
  •   Short-term debt increased due to additional commercial paper issuances and borrowings under our credit facilities for our seasonal working capital requirements and for share repurchases.
  •  
  •   Payables and accrued charges decreased due to the seasonality of our Retail segment. Throughout the year, we settle our vendor obligations and customer prepayments decrease as drawdowns occur. As at September 30, 2022, we had higher payables balances compared to the same period in 2021 due to higher input costs from inflation and tight global supply.
  •  
  •   Long-term debt decreased due to a reclassification to the current portion of long-term debt of our $500 million notes maturing May 2023.
  •  
  •   Deferred income tax liabilities increased primarily in the NPK businesses in the US and Canada, partially offset by US Retail recoveries. The reversal of the Phosphate impairment also resulted in an increase in the deferred tax liability of $161 million.
  •  
  •   Asset retirement obligations and accrued environment costs decreased due to changes in discount rates, reclassification to the current portion of asset retirement obligations and increased spending on remediation to restore our sites.
  •  
  •   Share capital decreased from shares repurchased under our normal course issuer bids partially offset by exercise of stock options.
  •  
  •   Accumulated other comprehensive loss increased due to a loss on currency translation of our foreign operations.
  •  
  •   Retained earnings increased as net earnings in the first nine months of 2022 exceeded dividends declared and share repurchases.
  •  

  Capital Structure and Management  

 

  Principal Debt Instruments  

 

As part of the normal course of business, we closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We were in compliance with our debt covenants and did not have any changes to our credit ratings in the nine months ended September 30, 2022.

 
                                                                                                        
 

 

 
 

  As at September 30, 2022  

 
 

 

 
 

 

 
  

 

 
  

  Outstanding and Committed  

 
 

(millions of US dollars)

 
 

Rate of Interest (%)

 
  

Total Facility Limit

 
  

  Short-Term Debt  

 
  

  Long-Term Debt  

 
 

Credit facilities

 
 

 

 
  

 

 
  

 

 
  

 

 
 

Unsecured revolving term credit facility

 
 

n/a

 
  

4,500

 
  

  

 
  

  

 
 

Unsecured revolving term credit facility

 
 

4.1

 
  

2,000

 
  

  1,000  

 
  

  

 
 

Uncommitted revolving demand facility

 
 

4.0

 
  

1,000

 
  

  500  

 
  

  

 
 

Other credit facilities

 
 

 

 
  

760

 
  

 

 
  

 

 
 

South American

 
 

1.5 - 21.7

 
  

 

 
  

  194  

 
  

  108  

 
 

Australian

 
 

3.6

 
  

 

 
  

  97  

 
  

  

 
 

Other

 
 

3.3 - 4.0

 
  

 

 
  

  8  

 
  

  3  

 
 

Commercial paper

 
 

2.9 - 4.0

 
  

 

 
  

  2,530  

 
  

  

 
 

Other short-term debt

 
 

n/a

 
  

 

 
  

  125  

 
  

  7  

 
 

Total

 
 

 

 
  

 

 
  

  4,454  

 
  

  118  

 
 

The amount available under the commercial paper program is limited to the availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. During the third quarter of 2022, we extended the maturity date of the $4,500 million unsecured revolving term credit facility from June 4, 2026 to September 14, 2027. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2021 Annual Report.

 

During the third quarter of 2022, we entered into a new $2,000 million revolving term credit facility, with the same principal covenants and events of default as our existing $4,500 million unsecured revolving term credit facility. The $2,000 million non-revolving term credit facilities we entered into in July 2022 to help temporarily manage normal seasonal working capital swings were closed prior to September 30, 2022.

 

Our long-term debt consists primarily of notes. See the "Capital Structure and Management" section of our 2021 Annual Report for information on balances, rates and maturities for our notes. Subsequent to the third quarter of 2022, we repaid the $500 million 3.15 percent notes that matured October 1, 2022.

 

  Outstanding Share Data  

 
      
 

 

 
 

  As at November 1, 2022  

 
 

Common shares

 
 

  520,183,851  

 
 

Options to purchase common shares

 
 

  3,920,176  

 
 

We repurchased approximately 40 million shares year-to-date as of November 1, 2022, under our share repurchase programs, for a total of approximately $3.5 billion and plan to allocate a total of approximately $4 billion to share repurchases in 2022. While some of the previously expected approximately $5 billion in repurchases may now extend into the first quarter of 2023 due to lower forecasted operating cash flow in 2022, we still intend on completing our existing 10 percent share repurchase program prior to its expiry in February 2023.

 

For more information on our capital structure and management, see Note 24 to our 2021 annual financial statements.

 

  Quarterly Results  

 
                                                                                                                
 

(millions of US dollars, except as otherwise noted)

 
 

  Q3 2022  

 
 

 

 
 

Q2 2022

 
 

 

 
 

Q1 2022

 
 

 

 
 

Q4 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q1 2021

 
 

 

 
 

Q4 2020

 
 

Sales

 
 

  8,188  

 
 

 

 
 

14,506

 
 

 

 
 

7,657

 
 

 

 
 

7,267

 
 

 

 
 

6,024

 
 

 

 
 

9,763

 
 

 

 
 

4,658

 
 

 

 
 

4,052

 
 

Net earnings

 
 

  1,583  

 
 

 

 
 

3,601

 
 

 

 
 

1,385

 
 

 

 
 

1,207

 
 

 

 
 

726

 
 

 

 
 

1,113

 
 

 

 
 

133

 
 

 

 
 

316

 
 

Net earnings attributable to equity holders of Nutrien

 
 

  1,577  

 
 

 

 
 

3,593

 
 

 

 
 

1,378

 
 

 

 
 

1,201

 
 

 

 
 

717

 
 

 

 
 

1,108

 
 

 

 
 

127

 
 

 

 
 

316

 
 

Net earnings per share attributable to equity holders of Nutrien

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Basic

 
 

  2.95  

 
 

 

 
 

6.53

 
 

 

 
 

2.49

 
 

 

 
 

2.11

 
 

 

 
 

1.26

 
 

 

 
 

1.94

 
 

 

 
 

0.22

 
 

 

 
 

0.55

 
 

Diluted

 
 

  2.94  

 
 

 

 
 

6.51

 
 

 

 
 

2.49

 
 

 

 
 

2.11

 
 

 

 
 

1.25

 
 

 

 
 

1.94

 
 

 

 
 

0.22

 
 

 

 
 

0.55

 
 

Seasonality in our business results from increased demand for products during the planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

 

Our earnings are significantly affected by fertilizer benchmark prices, which have been volatile over the last two years and are affected by demand-supply conditions, grower affordability and weather.

 

In the third and second quarters of 2022, earnings were impacted by $330 million and $450 million non-cash impairment reversals at White Springs and Aurora, respectively, of property, plant and equipment in the Phosphate segment related to higher forecasted global prices and a more favorable outlook for phosphate margins . In the fourth quarter of 2021, earnings were impacted by a $142 million loss resulting from the early extinguishment of long-term debt. In the fourth quarter of 2020, earnings were impacted by a $250 million net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E..

 

  Critical Accounting Estimates  

 

Our significant accounting policies are disclosed in our 2021 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the audit committee of the Board. Our critical accounting estimates are discussed on page 49 of our 2021 Annual Report. Other than the critical accounting estimates discussed below, there were no material changes in the three or nine months ended September 30, 2022 to our critical accounting estimates.

 

  Impairment of Assets  

 

  Long-Lived Asset Impairment and Reversals  

 

In the three months ended September 30, 2022, we continued to revise our near-term pricing forecasts due to continued global export restrictions from major producers and continued our review of our previously impaired Phosphate cash-generating unit ("CGU"), White Springs. In 2017 and 2020, we recorded an impairment of assets at our White Springs CGU relating to property, plant and equipment of $250 million and $215 million respectively, as a result of lower long-term forecasted global phosphate prices. Due to increases in our forecast, the recoverable amount of our White Springs CGU is above its carrying amount. As a result, during the three months ended September 30, 2022, we recorded a full impairment reversal, net of depreciation, of $330 million in the statement of earnings relating to property, plant and equipment. Refer to Note 3 to the interim financial statements.

 

The recoverable amount estimate is most sensitive to the following key assumptions: our internal sales and input price forecasts, which consider projections from independent third-party data sources, discount rate, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, and mineral reserve technical reports, as well as industry and market trends.

 

  Goodwill Impairment Indicators  

 

CGUs or groups of CGUs that have goodwill allocated to them must be assessed for impairment when events or circumstances indicate there could be an impairment, or at least annually. Based on our assumptions at the time of our impairment testing, the recoverable amount of each of our CGUs or groups of CGUs was greater than or approximately equal to their carrying amounts. Key assumptions in our testing models may change, and changes that could reasonably be expected to occur may cause impairment. Such change in assumptions could be driven by global supply and demand, other market factors, changes in regulations, and other future events outside our control.

 

During the nine months ended September 30, 2022, North American central banks continued to increase their benchmark borrowing rates. Benchmark borrowing rates are used as the risk-free rate which is a component of determining our discount rate for impairment testing. As a result of these increases, we revised our discount rates and increased our Retail – North America group of CGUs discount rate to 8.5 percent (previous impairment analysis – 8.0 percent at June 30, 2022) and this triggered an impairment test to be performed.

 

The Retail – North America group of CGUs have $6.9 billion in associated goodwill. Goodwill is more susceptible to impairment risk if there is an increase in the discount rate, or a deterioration in business operating results or economic conditions and actual results do not meet our forecasts. As at September 30, 2022, the Retail – North America group of CGUs carrying amount was equal to its recoverable amount. A 25 basis point increase in the discount rate will result in an impairment of the carrying amount of goodwill of approximately $500 million. A decrease in forecasted EBITDA and cash flows or a reduction in the terminal growth rate will also result in impairment in the future. Refer to Note 3 to the interim financial statements.

 

  Risk Factors  

 

  Russia and Ukraine Conflict  

 

The current conflict between Ukraine and Russia and the international response has, and may continue to have, potential wide-ranging consequences for global market volatility and economic conditions, including energy and commodity prices. Certain countries including Canada, the United States, Australia and certain European countries have imposed strict financial and trade sanctions against Russia, with Russia and Belarus imposing retaliatory sanctions of their own, which have had, and may continue to have, far-reaching effects on the global economy, energy and commodity prices, food security and crop nutrient supply and prices. The short-, medium- and long-term implications of the conflict in Ukraine are difficult to predict with any degree of certainty at this time. While Nutrien does not have operations in Ukraine or Russia, there remains uncertainty relating to the potential impact of the conflict and its effect on global food security, growers and the market outlook for crop nutrient market supply and demand fundamentals and nutrient prices, and it could have a material and adverse effect on our business, financial condition and results of operations. Depending on the extent, duration, and severity of the conflict, it may have the effect of heightening many of the other risks Nutrien is subject to and which are described in our 2021 Annual Report and 2021 Annual Information Form, including, without limitation, risks relating to market fundamentals and conditions (such as sanctions and trade flows and the impact thereof on crop nutrient supply and demand); cybersecurity threats; energy and commodity prices; inflationary pressures, interest rates and costs of capital; and supply chains and cost-effective and timely transportation.

 

  Controls and Procedures  

 

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings . Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

 

There has been no change in our internal control over financial reporting during the three months ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

  Forward-Looking Statements  

 

Certain statements and other information included in this document, including within the "Market Outlook and Guidance" section, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws (such statements are often accompanied by words such as "anticipate", "forecast", "expect", "believe", "may", "will", "should", "estimate", "intend" or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien's business strategies, plans, prospects and opportunities; Nutrien's 2022 full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; our advancement of strategic growth initiatives; capital spending expectations for 2022; our intention to complete our existing share repurchase program in 2022 and 2023, including the funds allocated thereto; expectations regarding performance of our operating segments in 2022 and 2023 including projected potash sales volumes; our operating segment market outlooks and market conditions and fundamentals for 2022 as well as our expectations for market conditions and fundamentals in 2023 and beyond, and the anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, grower crop investment, crop mix, production expenses, shipments, consumption, prices and the impact of seasonality, import and export volumes and economic sanctions; Nutrien's ability to develop innovative and sustainable solutions; the negotiation of sales contracts; acquisitions and divestitures and the anticipated benefits thereof; and the potential impairment of goodwill associated with our Retail – North America group of CGUs. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

 

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made include, among other things, assumptions with respect to our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures, and that we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, expenses, margins, demand, supply, product availability, shipments, consumption, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2022 and in the future; assumptions with respect to our intention to complete share repurchases under our share repurchase program, including the funding thereof, existing and future market conditions, including with respect to the price of our common shares, and compliance with respect to applicable limitations under securities laws and regulations and stock exchange policies; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall global economy; our expectations regarding the impacts, direct and indirect, of the conflict between Ukraine and Russia on, among other things, global supply and demand, energy and commodity prices, global interest rates, supply chains and the global macroeconomic environment, including inflation; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our expectations regarding the impact of certain factors on the carrying amount of goodwill associated with our Retail – North America group of CGUs; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales contracts; and our ability to successfully implement new initiatives and programs.

 

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; seasonality; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; the COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, including government-imposed vaccine mandates, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; the conflict between Ukraine and Russia and its potential impact on, among other things, global market conditions and supply and demand, energy and commodity prices; interest rates, supply chains and the global economy generally; our ability to execute on our strategies related to environmental, social and governance matters, and achieve related expectations; the risk that rising interest rates and/or deteriorated business operating results may result in the impairment of goodwill attributed to certain of our cash generating units; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the SEC in the United States.

 

The purpose of our adjusted net earnings per share, adjusted EBITDA (consolidated and by segment) and sustaining capital expenditures guidance ranges are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

 

The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.

 

  Terms and Definitions  

 

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the "Terms & Definitions" section of our 2021 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, "n/m" indicates information that is not meaningful, and all financial amounts are stated in millions of US dollars, unless otherwise noted.

 

  About Nutrien  

 

Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute approximately 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.

 

Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool  

 

Such data is not incorporated by reference herein.

 

  Nutrien will host a Conference Call on Thursday, November 3, 2022 at 10:00 a.m. Eastern Time.  

 

Telephone Conference dial-in numbers:

 
  • From Canada and the US 1-888-886-7786
  •  
  • International 1-416-764-8683
  •  
  • No access code required. Please dial in 15 minutes prior to ensure you are placed on the call in a timely manner.
  •  

Live Audio Webcast: Visit https://www.nutrien.com/investors/events/2022-q3-earnings-conference-call  

 

  Appendix A - Selected Additional Financial Data  

 
                                                                                                                                                                                                              
 

  Selected Retail Measures  

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  Proprietary products margin as a percentage of   product line margin (%)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  35  

 
 

 

 
 

26

 
 

 

 
 

  22  

 
 

 

 
 

24

 
 

Crop protection products

 
 

  41  

 
 

 

 
 

41

 
 

 

 
 

  41  

 
 

 

 
 

41

 
 

Seed

 
 

  62  

 
 

 

 
 

48

 
 

 

 
 

  45  

 
 

 

 
 

45

 
 

All products

 
 

  30  

 
 

 

 
 

27

 
 

 

 
 

  27  

 
 

 

 
 

27

 
 

  Crop nutrients sales volumes (tonnes – thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  1,066  

 
 

 

 
 

1,112

 
 

 

 
 

  6,286  

 
 

 

 
 

7,729

 
 

International

 
 

  782  

 
 

 

 
 

898

 
 

 

 
 

  2,732  

 
 

 

 
 

2,833

 
 

Total

 
 

  1,848  

 
 

 

 
 

2,010

 
 

 

 
 

  9,018  

 
 

 

 
 

10,562

 
 

  Crop nutrients selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  836  

 
 

 

 
 

602

 
 

 

 
 

  908  

 
 

 

 
 

510

 
 

International

 
 

  913  

 
 

 

 
 

585

 
 

 

 
 

  744  

 
 

 

 
 

464

 
 

Total

 
 

  869  

 
 

 

 
 

595

 
 

 

 
 

  858  

 
 

 

 
 

498

 
 

  Crop nutrients gross margin per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  155  

 
 

 

 
 

147

 
 

 

 
 

  191  

 
 

 

 
 

127

 
 

International

 
 

  64  

 
 

 

 
 

95

 
 

 

 
 

  80  

 
 

 

 
 

67

 
 

Total

 
 

  117  

 
 

 

 
 

124

 
 

 

 
 

  157  

 
 

 

 
 

111

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial performance measures  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Retail adjusted EBITDA margin (%) 1, 2

 
 

 

 
 

  11  

 
 

 

 
 

11

 
 

Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2, 3

 
 

 

 
 

  1,913  

 
 

 

 
 

1,362

 
 

Retail adjusted average working capital to sales (%) 1, 4

 
 

 

 
 

 

 
 

 

 
 

  16  

 
 

 

 
 

12

 
 

Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 4

 
 

 

 
 

  1  

 
 

 

 
 

(1)

 
 

Nutrien Financial adjusted net interest margin (%) 1, 4

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  6.7  

 
 

 

 
 

6.4

 
 

Retail cash operating coverage ratio (%) 1, 4

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  55  

 
 

 

 
 

59

 
 

1 Rolling four quarters ended September 30, 2022 and 2021.

 
 

2 These are supplementary financial measures. See the "Other Financial Measures" section.

 
 

3 Excluding acquisitions.

 
 

4 These are non-IFRS financial measures. See the "Non-IFRS Financial Measures" section.

 
 
                                                                          
 

  Nutrien Financial  

 
  

  As at September 30, 2022  

 
  

As at

 

Dec 31, 2021

 
 

(millions of US dollars)

 
  

  Current  

 
  

  

 

  past due  

 
  

  31–90 days  

 

  past due  

 
  

  >90 days  

 

  past due  

 
  

  Gross Receivables  

 
  

  Allowance 1  

 
  

  Net Receivables  

 
  

Net Receivables

 
 

North America

 
  

3,009

 
  

49

 
  

138

 
  

77

 
  

3,273

 
  

(34)

 
  

  3,239  

 
  

1,488

 
 

International

 
  

572

 
  

8

 
  

56

 
  

25

 
  

661

 
  

(2)

 
  

  659  

 
  

662

 
 

Nutrien Financial receivables

 
  

3,581

 
  

57

 
  

194

 
  

102

 
  

3,934

 
  

(36)

 
  

  3,898  

 
  

2,150

 
 

1 Bad debt expense on the above receivables for the nine months ended September 30, 2022 was $10 million (2021 – $9 million) in the Retail segment.

 
 
                                                                                    
 

  Selected Nitrogen Measures  

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  Sales volumes (tonnes – thousands)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  1,417  

 
 

 

 
 

1,320

 
 

 

 
 

  3,963  

 
 

 

 
 

4,450

 
 

Industrial and feed

 
 

  1,209  

 
 

 

 
 

1,201

 
 

 

 
 

  3,523  

 
 

 

 
 

3,440

 
 

  Net sales (millions of US dollars)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  764  

 
 

 

 
 

533

 
 

 

 
 

  2,658  

 
 

 

 
 

1,503

 
 

Industrial and feed

 
 

  743  

 
 

 

 
 

440

 
 

 

 
 

  2,191  

 
 

 

 
 

1,025

 
 

  Net selling price per tonne  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  539  

 
 

 

 
 

404

 
 

 

 
 

  671  

 
 

 

 
 

338

 
 

Industrial and feed

 
 

  614  

 
 

 

 
 

366

 
 

 

 
 

  622  

 
 

 

 
 

298

 
 
                                                                       
 

  Production Measures  

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Potash production (Product tonnes – thousands)

 
 

  2,742  

 
 

 

 
 

3,199

 
 

 

 
 

  10,066  

 
 

 

 
 

10,149

 
 

Potash shutdown weeks 1

 
 

  10  

 
 

 

 
 

10

 
 

 

 
 

  15  

 
 

 

 
 

14

 
 

Ammonia production – total 2

 
 

  1,483  

 
 

 

 
 

1,414

 
 

 

 
 

  4,359  

 
 

 

 
 

4,355

 
 

Ammonia production – adjusted 2, 3

 
 

  1,009  

 
 

 

 
 

856

 
 

 

 
 

  3,015  

 
 

 

 
 

2,863

 
 

Ammonia operating rate (%) 3

 
 

  91  

 
 

 

 
 

77

 
 

 

 
 

  92  

 
 

 

 
 

87

 
 

P 2 O 5 production (P 2 O 5 tonnes – thousands)

 
 

  335  

 
 

 

 
 

384

 
 

 

 
 

  1,063  

 
 

 

 
 

1,109

 
 

P 2 O 5 operating rate (%)

 
 

  78  

 
 

 

 
 

90

 
 

 

 
 

  84  

 
 

 

 
 

87

 
 

1 Represents weeks of full production shutdown, including inventory adjustments and unplanned events, excluding the impact of any periods of reduced operating rates, planned routine annual maintenance shutdowns and announced workforce reductions.

 
 

2 All figures are provided on a gross production basis in thousands of product tonnes.

 
 

3 Excludes Trinidad and Joffre.

 
 

  Appendix B - Non-IFRS Financial Measures  

 

We use both IFRS measures and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.

 

These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other companies. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

 

The following section outlines our non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It also includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As additional non-recurring or unusual items arise in the future, we generally exclude these items in our calculations.

 

  Adjusted EBITDA (Consolidated)  

 

  Most directly comparable IFRS financial measure: Net earnings (loss).

 

  Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, share-based compensation and certain foreign exchange gain/loss (net of related derivatives). We also adjust this measure for the following other income and expenses that are excluded when management evaluates the performance of our day-to-day operations: integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses, gain or loss on disposal of certain businesses and investments, and IFRS adoption transition adjustments.

 

  Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations, and as a component of employee remuneration calculations.

 
                                                                                                                       
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Net earnings

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

Finance costs

 
 

  136  

 
 

 

 
 

122

 
 

 

 
 

  375  

 
 

 

 
 

367

 
 

Income tax expense

 
 

  487  

 
 

 

 
 

209

 
 

 

 
 

  2,206  

 
 

 

 
 

615

 
 

Depreciation and amortization

 
 

  526  

 
 

 

 
 

489

 
 

 

 
 

  1,492  

 
 

 

 
 

1,454

 
 

EBITDA 1

 
 

  2,732  

 
 

 

 
 

1,546

 
 

 

 
 

  10,642  

 
 

 

 
 

4,408

 
 

Share-based compensation expense

 
 

  39  

 
 

 

 
 

64

 
 

 

 
 

  122  

 
 

 

 
 

125

 
 

Foreign exchange loss, net of related derivatives

 
 

  11  

 
 

 

 
 

1

 
 

 

 
 

  67  

 
 

 

 
 

1

 
 

Integration and restructuring related costs

 
 

  15  

 
 

 

 
 

8

 
 

 

 
 

  35  

 
 

 

 
 

47

 
 

(Reversal) impairment of assets

 
 

  (330)  

 
 

 

 
 

7

 
 

 

 
 

  (780)  

 
 

 

 
 

12

 
 

COVID-19 related expenses 2

 
 

  

 
 

 

 
 

16

 
 

 

 
 

  8  

 
 

 

 
 

34

 
 

Gain on disposal of investment

 
 

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Cloud computing transition adjustment 3

 
 

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Adjusted EBITDA

 
 

  2,467  

 
 

 

 
 

1,642

 
 

 

 
 

  10,075  

 
 

 

 
 

4,663

 
 

1 EBITDA is calculated as net earnings before finance costs, income taxes, and depreciation and amortization.

 
 

2 COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs, and costs related to construction delays from access limitations and other government restrictions.

 
 

3 Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021.

 
 

  Adjusted Net Earnings and Adjusted Net Earnings Per Share  

 

  Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

 

  Definition: Adjusted net earnings and related per share information are calculated as net earnings (loss) before share-based compensation and certain foreign exchange gain/loss (net of related derivatives), net of tax. We also adjust this measure for the following other income and expenses (net of tax) that are excluded when management evaluates the performance of our day-to-day operations: certain integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, gain/loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting. In 2022, we amended our calculation of adjusted net earnings to adjust for a gain on settlement of a derivative due to discontinued hedge accounting. There was no similar gain or loss in the comparative period. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment.

 

  Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations and is used as a component of employee remuneration calculations.

 
                                                                                                                                                                                                                                                                                                                                
 

 

 
 

  Three Months Ended  

 

  September 30, 2022  

 
 

 

 
 

  Nine Months Ended  

 

  September 30, 2022  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Per  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Per  

 
 

(millions of US dollars, except as otherwise

 
 

  Increases  

 
 

 

 
 

 

 
 

 

 
 

  Diluted  

 
 

 

 
 

  Increases  

 
 

 

 
 

 

 
 

 

 
 

  Diluted  

 
 

noted)

 
 

  (Decreases)  

 
 

 

 
 

  Post-Tax  

 
 

 

 
 

  Share  

 
 

 

 
 

  (Decreases)  

 
 

 

 
 

  Post-Tax  

 
 

 

 
 

  Share  

 
 

Net earnings attributable to equity holders of Nutrien

 
 

 

 
 

 

 
 

1,577

 
 

 

 
 

2.94

 
 

 

 
 

 

 
 

 

 
 

6,548

 
 

 

 
 

11.96

 
 

Adjustments:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share-based compensation expense

 
 

39

 
 

 

 
 

30

 
 

 

 
 

0.06

 
 

 

 
 

122

 
 

 

 
 

91

 
 

 

 
 

0.17

 
 

Foreign exchange loss, net of related derivatives

 
 

11

 
 

 

 
 

8

 
 

 

 
 

0.01

 
 

 

 
 

67

 
 

 

 
 

50

 
 

 

 
 

0.09

 
 

Integration and restructuring related costs

 
 

15

 
 

 

 
 

11

 
 

 

 
 

0.02

 
 

 

 
 

35

 
 

 

 
 

26

 
 

 

 
 

0.05

 
 

Impairment reversal of assets

 
 

(330)

 
 

 

 
 

(265)

 
 

 

 
 

(0.49)

 
 

 

 
 

(780)

 
 

 

 
 

(619)

 
 

 

 
 

(1.13)

 
 

COVID-19 related expenses

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

8

 
 

 

 
 

6

 
 

 

 
 

0.01

 
 

Gain on disposal of investment

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(19)

 
 

 

 
 

(14)

 
 

 

 
 

(0.03)

 
 

Gain on settlement of discontinued hedge accounting derivative

 
 

(18)

 
 

 

 
 

(14)

 
 

 

 
 

(0.03)

 
 

 

 
 

(18)

 
 

 

 
 

(13)

 
 

 

 
 

(0.02)

 
 

Adjusted net earnings

 
 

 

 
 

 

 
 

  1,347  

 
 

 

 
 

  2.51  

 
 

 

 
 

 

 
 

 

 
 

  6,075  

 
 

 

 
 

  11.10  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Three Months Ended

 

September 30, 2021

 
 

 

 
 

Nine Months Ended

 

September 30, 2021

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Per

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Per

 
 

(millions of US dollars, except as otherwise

 
 

Increases

 
 

 

 
 

 

 
 

 

 
 

Diluted

 
 

 

 
 

Increases

 
 

 

 
 

 

 
 

 

 
 

Diluted

 
 

noted)

 
 

(Decreases)

 
 

 

 
 

Post-Tax

 
 

 

 
 

Share

 
 

 

 
 

(Decreases)

 
 

 

 
 

Post-Tax

 
 

 

 
 

Share

 
 

Net earnings attributable to equity holders of Nutrien

 
 

 

 
 

 

 
 

717

 
 

 

 
 

1.25

 
 

 

 
 

 

 
 

 

 
 

1,952

 
 

 

 
 

3.41

 
 

Adjustments:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share-based compensation expense

 
 

64

 
 

 

 
 

48

 
 

 

 
 

0.09

 
 

 

 
 

125

 
 

 

 
 

94

 
 

 

 
 

0.16

 
 

Foreign exchange loss, net of related derivatives

 
 

1

 
 

 

 
 

1

 
 

 

 
 

 
 

 

 
 

1

 
 

 

 
 

1

 
 

 

 
 

 
 

Integration and restructuring related costs

 
 

8

 
 

 

 
 

6

 
 

 

 
 

0.01

 
 

 

 
 

47

 
 

 

 
 

35

 
 

 

 
 

0.06

 
 

Impairment of assets

 
 

7

 
 

 

 
 

5

 
 

 

 
 

0.01

 
 

 

 
 

12

 
 

 

 
 

9

 
 

 

 
 

0.02

 
 

COVID-19 related expenses

 
 

16

 
 

 

 
 

12

 
 

 

 
 

0.02

 
 

 

 
 

34

 
 

 

 
 

26

 
 

 

 
 

0.05

 
 

Cloud computing transition adjustment

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

36

 
 

 

 
 

27

 
 

 

 
 

0.05

 
 

Adjusted net earnings

 
 

 

 
 

 

 
 

789

 
 

 

 
 

1.38

 
 

 

 
 

 

 
 

 

 
 

2,144

 
 

 

 
 

3.75

 
 

  Adjusted EBITDA (Consolidated) and Adjusted Net Earnings Per Share Guidance  

 

Adjusted EBITDA and adjusted net earnings per share guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS because a meaningful or accurate calculation of reconciling items and the information is not available without unreasonable effort due to unknown variables, including the timing and amount of certain reconciling items, and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine without unreasonable efforts. The probable significance of such unavailable information, which could be material to future results, cannot be addressed. Guidance for adjusted EBITDA and adjusted net earnings per share excludes certain items such as, but not limited to, the impacts of share-based compensation, certain foreign exchange gain/loss (net of related derivatives), integration and restructuring related costs, impairment or reversal of impairment of assets, COVID-19 related expenses (including those recorded under finance costs), gain or loss on disposal of certain businesses and investments, IFRS adoption transition adjustments, and gain/loss on early extinguishment of debt or on settlement of derivatives due to discontinuance of hedge accounting.

 

  Free Cash Flow and Free Cash Flow Including Changes in Non-Cash Operating Working Capital  

 

  Most directly comparable IFRS financial measure: Cash provided by (used in) operating activities.

 

  Definition: Free cash flow is calculated as cash provided by (used in) operating activities less sustaining capital expenditures and before changes in non-cash operating working capital. Free cash flow including non-cash operating working capital is calculated as cash provided by operating activities less sustaining capital expenditures.

 

  Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength. These are also useful as indicators of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

 
                                                    
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Cash provided by (used in) operating activities

 
 

  878  

 
 

 

 
 

(1,565)

 
 

 

 
 

  3,374  

 
 

 

 
 

249

 
 

Sustaining capital expenditures

 
 

  (428)  

 
 

 

 
 

(325)

 
 

 

 
 

  (878)  

 
 

 

 
 

(793)

 
 

Free cash flow including changes in non-cash operating working capital

 
 

  450  

 
 

 

 
 

(1,890)

 
 

 

 
 

  2,496  

 
 

 

 
 

(544)

 
 

Changes in non-cash operating working capital

 
 

  (1,093)  

 
 

 

 
 

(2,752)

 
 

 

 
 

  (4,274)  

 
 

 

 
 

(3,295)

 
 

Free cash flow

 
 

  1,543  

 
 

 

 
 

862

 
 

 

 
 

  6,770  

 
 

 

 
 

2,751

 
 

  Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured  

 

  Most directly comparable IFRS financial measure: Gross margin.

 

  Definition: Gross margin per tonne less depreciation and amortization per tonne for manufactured products. Reconciliations are provided in the "Segment Results" section.

 

  Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

 

  Potash Controllable Cash Cost of Product Manufactured ("COPM") Per Tonne  

 

  Most directly comparable IFRS financial measure: Cost of goods sold ("COGS") for the Potash segment.

 

  Definition: Total Potash COGS excluding depreciation and amortization expense included in COPM, royalties, natural gas costs and carbon taxes, change in inventory, and other adjustments, divided by potash production tonnes.

 

  Why we use the measure and why it is useful to investors: To assess operational performance. In 2022, we replaced Potash cash COPM with this new financial measure. Potash controllable cash COPM excludes the effects of production from other periods and the impacts of our long-term investment decisions. Potash controllable cash COPM also excludes royalties and natural gas costs and carbon taxes, which management does not consider controllable, as they are primarily driven by regulatory and market conditions.

 
                                                                                             
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Total COGS – Potash

 
 

  386  

 
 

 

 
 

372

 
 

 

 
 

  1,090  

 
 

 

 
 

980

 
 

Change in inventory

 
 

  (52)  

 
 

 

 
 

(58)

 
 

 

 
 

  20  

 
 

 

 
 

(42)

 
 

Other adjustments 1

 
 

  (5)  

 
 

 

 
 

(1)

 
 

 

 
 

  (29)  

 
 

 

 
 

(7)

 
 

COPM

 
 

  329  

 
 

 

 
 

313

 
 

 

 
 

  1,081  

 
 

 

 
 

931

 
 

Depreciation and amortization in COPM

 
 

  (84)  

 
 

 

 
 

(101)

 
 

 

 
 

  (317)  

 
 

 

 
 

(315)

 
 

Royalties in COPM

 
 

  (42)  

 
 

 

 
 

(24)

 
 

 

 
 

  (150)  

 
 

 

 
 

(60)

 
 

Natural gas costs and carbon taxes in COPM

 
 

  (9)  

 
 

 

 
 

(11)

 
 

 

 
 

  (45)  

 
 

 

 
 

(34)

 
 

Controllable cash COPM

 
 

  194  

 
 

 

 
 

177

 
 

 

 
 

  569  

 
 

 

 
 

522

 
 

Production tonnes (tonnes – thousands)

 
 

  2,742  

 
 

 

 
 

3,199

 
 

 

 
 

  10,066  

 
 

 

 
 

10,149

 
 

Potash controllable cash COPM per tonne

 
 

  70  

 
 

 

 
 

55

 
 

 

 
 

  56  

 
 

 

 
 

51

 
 

1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

 
 

  Ammonia Controllable Cash COPM Per Tonne  

 

  Most directly comparable IFRS financial measure: Total manufactured COGS for the Nitrogen segment.

 

  Definition: Total Nitrogen COGS excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

 

  Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

 
                                                                                                                      
 

 

 
 

  Three Months Ended September 30  

 
 

 

 
 

  Nine Months Ended September 30  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Total Manufactured COGS – Nitrogen

 
 

  872  

 
 

 

 
 

591

 
 

 

 
 

  2,351  

 
 

 

 
 

1,628

 
 

Total Other COGS – Nitrogen

 
 

  235  

 
 

 

 
 

104

 
 

 

 
 

  808  

 
 

 

 
 

440

 
 

Total COGS – Nitrogen

 
 

  1,107  

 
 

 

 
 

695

 
 

 

 
 

  3,159  

 
 

 

 
 

2,068

 
 

Depreciation and amortization in COGS

 
 

  (117)  

 
 

 

 
 

(105)

 
 

 

 
 

  (334)  

 
 

 

 
 

(347)

 
 

Cash COGS for products other than ammonia

 
 

  (640)  

 
 

 

 
 

(380)

 
 

 

 
 

  (1,912)  

 
 

 

 
 

(1,221)

 
 

Ammonia

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Total cash COGS before other adjustments

 
 

  350  

 
 

 

 
 

210

 
 

 

 
 

  913  

 
 

 

 
 

500

 
 

Other adjustments 1

 
 

  (31)  

 
 

 

 
 

(36)

 
 

 

 
 

  (145)  

 
 

 

 
 

(66)

 
 

Total cash COPM

 
 

  319  

 
 

 

 
 

174

 
 

 

 
 

  768  

 
 

 

 
 

434

 
 

Natural gas and steam costs

 
 

  (267)  

 
 

 

 
 

(137)

 
 

 

 
 

  (643)  

 
 

 

 
 

(329)

 
 

Controllable cash COPM

 
 

  52  

 
 

 

 
 

37

 
 

 

 
 

  125  

 
 

 

 
 

105

 
 

Production tonnes (net tonnes 2 – thousands)

 
 

  819  

 
 

 

 
 

706

 
 

 

 
 

  2,099  

 
 

 

 
 

2,011

 
 

Ammonia controllable cash COPM per tonne

 
 

  62  

 
 

 

 
 

53

 
 

 

 
 

  59  

 
 

 

 
 

52

 
 

1 Other adjustments include unallocated production overhead that is recognized as part of cost of goods sold but is not included in the measurement of inventory and changes in inventory balances.

 
 

2 Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

 
 

  Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working   Capital to Sales Excluding Nutrien Financial  

 

  Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the sales and working capital of certain acquisitions during the first year following the acquisition. We also look at this metric excluding Nutrien Financial revenue and working capital.

 

  Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.

 
                                                                                                                                                                                                                                                                                                                                                        
 

 

 
 

  Rolling four quarters ended September 30, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2021  

 
 

 

 
 

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Average/Total  

 
 

Current assets

 
 

9,924

 
 

 

 
 

12,392

 
 

 

 
 

12,487

 
 

 

 
 

11,262

 
 

 

 
 

 

 
 

Current liabilities

 
 

(7,828)

 
 

 

 
 

(9,223)

 
 

 

 
 

(9,177)

 
 

 

 
 

(5,889)

 
 

 

 
 

 

 
 

Working capital

 
 

2,096

 
 

 

 
 

3,169

 
 

 

 
 

3,310

 
 

 

 
 

5,373

 
 

 

 
 

  3,487  

 
 

Working capital from certain recent acquisitions

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted working capital

 
 

2,096

 
 

 

 
 

3,169

 
 

 

 
 

3,310

 
 

 

 
 

5,373

 
 

 

 
 

  3,487  

 
 

Nutrien Financial working capital

 
 

(2,150)

 
 

 

 
 

(2,274)

 
 

 

 
 

(4,404)

 
 

 

 
 

(3,898)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
 

(54)

 
 

 

 
 

895

 
 

 

 
 

(1,094)

 
 

 

 
 

1,475

 
 

 

 
 

  306  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales

 
 

3,878

 
 

 

 
 

3,861

 
 

 

 
 

9,422

 
 

 

 
 

3,980

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted sales

 
 

3,878

 
 

 

 
 

3,861

 
 

 

 
 

9,422

 
 

 

 
 

3,980

 
 

 

 
 

  21,141  

 
 

Nutrien Financial revenue

 
 

(51)

 
 

 

 
 

(49)

 
 

 

 
 

(91)

 
 

 

 
 

(65)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
 

3,827

 
 

 

 
 

3,812

 
 

 

 
 

9,331

 
 

 

 
 

3,915

 
 

 

 
 

  20,885  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Adjusted average working capital to sales (%)  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  16  

 
 

  Adjusted average working capital to sales excluding Nutrien Financial (%)  

 
 

 

 
 

 

 
 

 

 
 

  1  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Rolling four quarters ended September 30, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
 

Q4 2020

 
 

 

 
 

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Average/Total

 
 

Current assets

 
 

8,013

 
 

 

 
 

9,160

 
 

 

 
 

9,300

 
 

 

 
 

8,945

 
 

 

 
 

 

 
 

Current liabilities

 
 

(6,856)

 
 

 

 
 

(7,530)

 
 

 

 
 

(7,952)

 
 

 

 
 

(5,062)

 
 

 

 
 

 

 
 

Working capital

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

2,005

 
 

Working capital from certain recent acquisitions

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted working capital

 
 

1,157

 
 

 

 
 

1,630

 
 

 

 
 

1,348

 
 

 

 
 

3,883

 
 

 

 
 

2,005

 
 

Nutrien Financial working capital

 
 

(1,392)

 
 

 

 
 

(1,221)

 
 

 

 
 

(3,072)

 
 

 

 
 

(2,820)

 
 

 

 
 

 

 
 

Adjusted working capital excluding Nutrien Financial

 
 

(235)

 
 

 

 
 

409

 
 

 

 
 

(1,724)

 
 

 

 
 

1,063

 
 

 

 
 

(122)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Sales

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

 

 
 

Sales from certain recent acquisitions

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 

 
 

Adjusted sales

 
 

2,618

 
 

 

 
 

2,972

 
 

 

 
 

7,537

 
 

 

 
 

3,347

 
 

 

 
 

16,474

 
 

Nutrien Financial revenue

 
 

(37)

 
 

 

 
 

(25)

 
 

 

 
 

(59)

 
 

 

 
 

(54)

 
 

 

 
 

 

 
 

Adjusted sales excluding Nutrien Financial

 
 

2,581

 
 

 

 
 

2,947

 
 

 

 
 

7,478

 
 

 

 
 

3,293

 
 

 

 
 

16,299

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Adjusted average working capital to sales (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

12

 
 

Adjusted average working capital to sales excluding Nutrien Financial (%)

 
 

 

 
 

 

 
 

 

 
 

(1)

 
 

  Nutrien Financial Adjusted Net Interest Margin  

 

  Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial receivables outstanding for the last four rolling quarters.

 

  Why we use the measure and why it is useful to investors: Used by credit rating agencies and other users to evaluate financial performance of Nutrien Financial.

 
                                                                                                                                                            
 

 

 
 

  Rolling four quarters ended September 30, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2021  

 
 

 

 
 

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Total/Average  

 
 

Nutrien Financial revenue

 
 

51

 
 

 

 
 

49

 
 

 

 
 

91

 
 

 

 
 

65

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
 

(12)

 
 

 

 
 

(6)

 
 

 

 
 

(12)

 
 

 

 
 

(12)

 
 

 

 
 

 

 
 

Net interest

 
 

39

 
 

 

 
 

43

 
 

 

 
 

79

 
 

 

 
 

53

 
 

 

 
 

  214  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
 

2,150

 
 

 

 
 

2,274

 
 

 

 
 

4,404

 
 

 

 
 

3,898

 
 

 

 
 

  3,182  

 
 

Nutrien Financial adjusted net interest margin (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  6.7  

 
 

1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Rolling four quarters ended September 30, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
 

Q4 2020

 
 

 

 
 

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Total/Average

 
 

Nutrien Financial revenue

 
 

37

 
 

 

 
 

25

 
 

 

 
 

59

 
 

 

 
 

54

 
 

 

 
 

 

 
 

Deemed interest expense 1

 
 

(14)

 
 

 

 
 

(6)

 
 

 

 
 

(8)

 
 

 

 
 

(10)

 
 

 

 
 

 

 
 

Net interest

 
 

23

 
 

 

 
 

19

 
 

 

 
 

51

 
 

 

 
 

44

 
 

 

 
 

137

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Average Nutrien Financial receivables

 
 

1,392

 
 

 

 
 

1,221

 
 

 

 
 

3,072

 
 

 

 
 

2,820

 
 

 

 
 

2,126

 
 

Nutrien Financial adjusted net interest margin (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

6.4

 
 

1 Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

 
 

  Retail Cash Operating Coverage Ratio  

 

  Definition: Retail selling, general and administrative, and other expenses, excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.

 

  Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

 
                                                                                                                                                                                                                                                              
 

 

 
 

  Rolling four quarters ended September 30, 2022  

 
 

(millions of US dollars, except as otherwise noted)

 
 

  Q4 2021  

 
 

 

 
 

  Q1 2022  

 
 

 

 
 

  Q2 2022  

 
 

 

 
 

  Q3 2022  

 
 

 

 
 

  Total  

 
 

Selling expenses

 
 

848

 
 

 

 
 

722

 
 

 

 
 

1,013

 
 

 

 
 

821

 
 

 

 
 

  3,404  

 
 

General and administrative expenses

 
 

43

 
 

 

 
 

45

 
 

 

 
 

54

 
 

 

 
 

50

 
 

 

 
 

  192  

 
 

Other expenses (income)

 
 

20

 
 

 

 
 

(12)

 
 

 

 
 

21

 
 

 

 
 

19

 
 

 

 
 

  48  

 
 

Operating expenses

 
 

911

 
 

 

 
 

755

 
 

 

 
 

1,088

 
 

 

 
 

890

 
 

 

 
 

  3,644  

 
 

Depreciation and amortization in operating expenses

 
 

(173)

 
 

 

 
 

(167)

 
 

 

 
 

(171)

 
 

 

 
 

(204)

 
 

 

 
 

  (715)  

 
 

Operating expenses excluding depreciation and amortization

 
 

738

 
 

 

 
 

588

 
 

 

 
 

917

 
 

 

 
 

686

 
 

 

 
 

  2,929  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

1,173

 
 

 

 
 

845

 
 

 

 
 

2,340

 
 

 

 
 

917

 
 

 

 
 

  5,275  

 
 

Depreciation and amortization in cost of goods sold

 
 

5

 
 

 

 
 

2

 
 

 

 
 

4

 
 

 

 
 

2

 
 

 

 
 

  13  

 
 

Gross margin excluding depreciation and amortization

 
 

1,178

 
 

 

 
 

847

 
 

 

 
 

2,344

 
 

 

 
 

919

 
 

 

 
 

  5,288  

 
 

Cash operating coverage ratio (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  55  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Rolling four quarters ended September 30, 2021

 
 

(millions of US dollars, except as otherwise noted)

 
 

Q4 2020

 
 

 

 
 

Q1 2021

 
 

 

 
 

Q2 2021

 
 

 

 
 

Q3 2021

 
 

 

 
 

Total

 
 

Selling expenses

 
 

727

 
 

 

 
 

667

 
 

 

 
 

863

 
 

 

 
 

746

 
 

 

 
 

3,003

 
 

General and administrative expenses

 
 

33

 
 

 

 
 

39

 
 

 

 
 

41

 
 

 

 
 

45

 
 

 

 
 

158

 
 

Other expenses (income)

 
 

8

 
 

 

 
 

15

 
 

 

 
 

34

 
 

 

 
 

17

 
 

 

 
 

74

 
 

Operating expenses

 
 

768

 
 

 

 
 

721

 
 

 

 
 

938

 
 

 

 
 

808

 
 

 

 
 

3,235

 
 

Depreciation and amortization in operating expenses

 
 

(177)

 
 

 

 
 

(175)

 
 

 

 
 

(166)

 
 

 

 
 

(180)

 
 

 

 
 

(698)

 
 

Operating expenses excluding depreciation and amortization

 
 

591

 
 

 

 
 

546

 
 

 

 
 

772

 
 

 

 
 

628

 
 

 

 
 

2,537

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Gross margin

 
 

885

 
 

 

 
 

652

 
 

 

 
 

1,858

 
 

 

 
 

917

 
 

 

 
 

4,312

 
 

Depreciation and amortization in cost of goods sold

 
 

3

 
 

 

 
 

2

 
 

 

 
 

3

 
 

 

 
 

2

 
 

 

 
 

10

 
 

Gross margin excluding depreciation and amortization

 
 

888

 
 

 

 
 

654

 
 

 

 
 

1,861

 
 

 

 
 

919

 
 

 

 
 

4,322

 
 

Cash operating coverage ratio (%)

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

59

 
 

  Appendix C – Other Financial Measures  

 

  Supplementary Financial Measures  

 

Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios.

 

The following section provides an explanation of the composition of those supplementary financial measures if not previously provided.

 

  Retail adjusted EBITDA margin: Retail adjusted EBITDA divided by Retail sales for the last four rolling quarters.

 

  Sustaining capital expenditures: Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance, and plant turnarounds.

 

  Retail adjusted EBITDA per US selling location: Calculated as total Retail US adjusted EBITDA for the last four rolling quarters, representing the organic EBITDA component, which excludes acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters, adjusted for acquired locations in those quarters.

 

  Condensed Consolidated Financial Statements  

 

  Unaudited - In millions of US dollars except as otherwise noted  

 

  C   ondensed Consolidated Statements of Earnings  

 
                                                                                                                                                                                                                                           
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  SALES  

 
 

2

 
 

  8,188  

 
 

 

 
 

6,024

 
 

 

 
 

  30,351  

 
 

 

 
 

20,445

 
 

Freight, transportation and distribution

 
 

 

 
 

  204  

 
 

 

 
 

220

 
 

 

 
 

  628  

 
 

 

 
 

653

 
 

Cost of goods sold

 
 

 

 
 

  4,722  

 
 

 

 
 

3,639

 
 

 

 
 

  17,205  

 
 

 

 
 

13,589

 
 

  GROSS MARGIN  

 
 

 

 
 

  3,262  

 
 

 

 
 

2,165

 
 

 

 
 

  12,518  

 
 

 

 
 

6,203

 
 

Selling expenses

 
 

 

 
 

  826  

 
 

 

 
 

749

 
 

 

 
 

  2,570  

 
 

 

 
 

2,287

 
 

General and administrative expenses

 
 

 

 
 

  137  

 
 

 

 
 

110

 
 

 

 
 

  403  

 
 

 

 
 

329

 
 

Provincial mining taxes

 
 

 

 
 

  348  

 
 

 

 
 

128

 
 

 

 
 

  959  

 
 

 

 
 

293

 
 

Share-based compensation expense

 
 

 

 
 

  39  

 
 

 

 
 

64

 
 

 

 
 

  122  

 
 

 

 
 

125

 
 

(Reversal) impairment of assets

 
 

3

 
 

  (330)  

 
 

 

 
 

7

 
 

 

 
 

  (780)  

 
 

 

 
 

12

 
 

Other expenses

 
 

4

 
 

  36  

 
 

 

 
 

50

 
 

 

 
 

  94  

 
 

 

 
 

203

 
 

  EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES  

 
 

  2,206  

 
 

 

 
 

1,057

 
 

 

 
 

  9,150  

 
 

 

 
 

2,954

 
 

Finance costs

 
 

 

 
 

  136  

 
 

 

 
 

122

 
 

 

 
 

  375  

 
 

 

 
 

367

 
 

  EARNINGS BEFORE INCOME TAXES  

 
 

 

 
 

  2,070  

 
 

 

 
 

935

 
 

 

 
 

  8,775  

 
 

 

 
 

2,587

 
 

Income tax expense

 
 

5

 
 

  487  

 
 

 

 
 

209

 
 

 

 
 

  2,206  

 
 

 

 
 

615

 
 

  NET EARNINGS  

 
 

 

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

 

 
 

  1,577  

 
 

 

 
 

717

 
 

 

 
 

  6,548  

 
 

 

 
 

1,952

 
 

Non-controlling interest

 
 

 

 
 

  6  

 
 

 

 
 

9

 
 

 

 
 

  21  

 
 

 

 
 

20

 
 

  NET EARNINGS  

 
 

 

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN ("EPS")  

 
 

Basic

 
 

 

 
 

  2.95  

 
 

 

 
 

1.26

 
 

 

 
 

  12.00  

 
 

 

 
 

3.42

 
 

Diluted

 
 

 

 
 

  2.94  

 
 

 

 
 

1.25

 
 

 

 
 

  11.96  

 
 

 

 
 

3.41

 
 

Weighted average shares outstanding for basic EPS

 
 

 

 
 

  534,839,000  

 
 

 

 
 

570,627,000

 
 

 

 
 

  545,776,000  

 
 

 

 
 

570,216,000

 
 

Weighted average shares outstanding for diluted EPS

 
 

 

 
 

  536,164,000  

 
 

 

 
 

572,224,000

 
 

 

 
 

  547,449,000  

 
 

 

 
 

571,735,000

 
 

  Condensed Consolidated Statements of Comprehensive Income  

 
                                                                                                                                         
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

(Net of related income taxes)

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  NET EARNINGS  

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

Other comprehensive (loss) income

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Items that will not be reclassified to net earnings:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net actuarial gain on defined benefit plans

 
 

  60  

 
 

 

 
 

 
 

 

 
 

  61  

 
 

 

 
 

 
 

Net fair value (loss) gain on investments

 
 

  (54)  

 
 

 

 
 

46

 
 

 

 
 

  (61)  

 
 

 

 
 

116

 
 

Items that have been or may be subsequently reclassified to net earnings:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Loss on currency translation of foreign operations

 
 

  (191)  

 
 

 

 
 

(124)

 
 

 

 
 

  (272)  

 
 

 

 
 

(129)

 
 

Other

 
 

  (45)  

 
 

 

 
 

(1)

 
 

 

 
 

  (24)  

 
 

 

 
 

19

 
 

  OTHER COMPREHENSIVE (LOSS) INCOME  

 
 

  (230)  

 
 

 

 
 

(79)

 
 

 

 
 

  (296)  

 
 

 

 
 

6

 
 

  COMPREHENSIVE INCOME  

 
 

  1,353  

 
 

 

 
 

647

 
 

 

 
 

  6,273  

 
 

 

 
 

1,978

 
 

Attributable to

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity holders of Nutrien

 
 

  1,348  

 
 

 

 
 

638

 
 

 

 
 

  6,254  

 
 

 

 
 

1,959

 
 

Non-controlling interest

 
 

  5  

 
 

 

 
 

9

 
 

 

 
 

  19  

 
 

 

 
 

19

 
 

  COMPREHENSIVE INCOME  

 
 

  1,353  

 
 

 

 
 

647

 
 

 

 
 

  6,273  

 
 

 

 
 

1,978

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Cash Flows  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 

 

 
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

 

 
 

 

 
 

 

 
 

Note 1

 
 

  OPERATING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Net earnings

 
 

 

 
 

  1,583  

 
 

 

 
 

726

 
 

 

 
 

  6,569  

 
 

 

 
 

1,972

 
 

Adjustments for:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Depreciation and amortization

 
 

 

 
 

  526  

 
 

 

 
 

489

 
 

 

 
 

  1,492  

 
 

 

 
 

1,454

 
 

Share-based compensation expense

 
 

 

 
 

  39  

 
 

 

 
 

64

 
 

 

 
 

  122  

 
 

 

 
 

125

 
 

(Reversal) impairment of assets

 
 

3

 
 

  (330)  

 
 

 

 
 

7

 
 

 

 
 

  (780)  

 
 

 

 
 

12

 
 

Provision for (recovery of) deferred income tax

 
 

 

 
 

  160  

 
 

 

 
 

(87)

 
 

 

 
 

  152  

 
 

 

 
 

(97)

 
 

Gain on disposal of investment

 
 

4

 
 

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Cloud computing transition adjustment

 
 

4

 
 

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Other long-term assets, liabilities and miscellaneous

 
 

 

 
 

  (7)  

 
 

 

 
 

(12)

 
 

 

 
 

  112  

 
 

 

 
 

42

 
 

Cash from operations before working capital changes

 
 

 

 
 

  1,971  

 
 

 

 
 

1,187

 
 

 

 
 

  7,648  

 
 

 

 
 

3,544

 
 

Changes in non-cash operating working capital:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Receivables

 
 

 

 
 

  1,240  

 
 

 

 
 

(266)

 
 

 

 
 

  (3,602)  

 
 

 

 
 

(3,101)

 
 

Inventories

 
 

 

 
 

  517  

 
 

 

 
 

130

 
 

 

 
 

  (344)  

 
 

 

 
 

193

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  (44)  

 
 

 

 
 

(133)

 
 

 

 
 

  1,018  

 
 

 

 
 

865

 
 

Payables and accrued charges

 
 

 

 
 

  (2,806)  

 
 

 

 
 

(2,483)

 
 

 

 
 

  (1,346)  

 
 

 

 
 

(1,252)

 
 

  CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES  

 
 

 

 
 

  878  

 
 

 

 
 

(1,565)

 
 

 

 
 

  3,374  

 
 

 

 
 

249

 
 

  INVESTING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Capital expenditures 1

 
 

 

 
 

  (636)  

 
 

 

 
 

(492)

 
 

 

 
 

  (1,464)  

 
 

 

 
 

(1,238)

 
 

Business acquisitions, net of cash acquired

 
 

 

 
 

  (10)  

 
 

 

 
 

(30)

 
 

 

 
 

  (78)  

 
 

 

 
 

(70)

 
 

Other

 
 

 

 
 

  (90)  

 
 

 

 
 

(19)

 
 

 

 
 

  (60)  

 
 

 

 
 

(57)

 
 

Net changes in non-cash working capital

 
 

 

 
 

  31  

 
 

 

 
 

18

 
 

 

 
 

  (77)  

 
 

 

 
 

23

 
 

  CASH USED IN INVESTING ACTIVITIES  

 
 

 

 
 

  (705)  

 
 

 

 
 

(523)

 
 

 

 
 

  (1,679)  

 
 

 

 
 

(1,342)

 
 

  FINANCING ACTIVITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Transaction costs related to debt

 
 

 

 
 

  (3)  

 
 

 

 
 

 
 

 

 
 

  (3)  

 
 

 

 
 

(7)

 
 

Proceeds from short-term debt, net

 
 

 

 
 

  2,017  

 
 

 

 
 

1,040

 
 

 

 
 

  2,867  

 
 

 

 
 

1,037

 
 

Proceeds from long-term debt

 
 

 

 
 

  

 
 

 

 
 

81

 
 

 

 
 

  41  

 
 

 

 
 

89

 
 

Repayment of long-term debt

 
 

 

 
 

  (22)  

 
 

 

 
 

 
 

 

 
 

  (50)  

 
 

 

 
 

(5)

 
 

Repayment of principal portion of lease liabilities

 
 

 

 
 

  (83)  

 
 

 

 
 

(78)

 
 

 

 
 

  (256)  

 
 

 

 
 

(242)

 
 

Dividends paid to Nutrien's shareholders

 
 

8

 
 

  (259)  

 
 

 

 
 

(261)

 
 

 

 
 

  (780)  

 
 

 

 
 

(779)

 
 

Repurchase of common shares

 
 

8

 
 

  (1,700)  

 
 

 

 
 

(148)

 
 

 

 
 

  (3,306)  

 
 

 

 
 

(150)

 
 

Issuance of common shares

 
 

 

 
 

  4  

 
 

 

 
 

125

 
 

 

 
 

  168  

 
 

 

 
 

188

 
 

Other

 
 

 

 
 

  17  

 
 

 

 
 

(2)

 
 

 

 
 

  

 
 

 

 
 

(14)

 
 

  CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES  

 
 

 

 
 

  (29)  

 
 

 

 
 

757

 
 

 

 
 

  (1,319)  

 
 

 

 
 

117

 
 

  EFFECT OF EXCHANGE RATE CHANGES ON CASH AND   CASH EQUIVALENTS  

 
 

 

 
 

  (32)  

 
 

 

 
 

(20)

 
 

 

 
 

  (52)  

 
 

 

 
 

(35)

 
 

  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  

 
 

 

 
 

  112  

 
 

 

 
 

(1,351)

 
 

 

 
 

  324  

 
 

 

 
 

(1,011)

 
 

  CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD  

 
 

 

 
 

  711  

 
 

 

 
 

1,794

 
 

 

 
 

  499  

 
 

 

 
 

1,454

 
 

  CASH AND CASH EQUIVALENTS – END OF PERIOD  

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

Cash and cash equivalents comprised of:

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash

 
 

 

 
 

  428  

 
 

 

 
 

315

 
 

 

 
 

  428  

 
 

 

 
 

315

 
 

Short-term investments

 
 

 

 
 

  395  

 
 

 

 
 

128

 
 

 

 
 

  395  

 
 

 

 
 

128

 
 

 

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

  SUPPLEMENTAL CASH FLOWS INFORMATION  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Interest paid

 
 

 

 
 

  80  

 
 

 

 
 

81

 
 

 

 
 

  280  

 
 

 

 
 

319

 
 

Income taxes paid

 
 

 

 
 

  318  

 
 

 

 
 

212

 
 

 

 
 

  1,503  

 
 

 

 
 

356

 
 

Total cash outflow for leases

 
 

 

 
 

  111  

 
 

 

 
 

91

 
 

 

 
 

  339  

 
 

 

 
 

299

 
 

1 Includes additions to property, plant and equipment and intangible assets for the three months ended September 30, 2022 of $584 and $52 (2021 – $463 and $29), respectively, and for the nine months ended September 30, 2022 of $1,317 and $147 (2021 – $1,171 and $67), respectively.

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Statements of Changes in Shareholders' Equity  

 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Accumulated Other Comprehensive

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(Loss) Income ("AOCI")

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Loss on

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Currency

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Equity

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Number of

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Translation

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Holders

 
 

 

 
 

Non-

 
 

 

 
 

 

 
 

 

 
 

Common

 
 

 

 
 

Share

 
 

 

 
 

Contributed

 
 

 

 
 

of Foreign

 
 

 

 
 

 

 
 

 

 
 

Total

 
 

 

 
 

Retained

 
 

 

 
 

of

 
 

 

 
 

Controlling

 
 

 

 
 

Total

 
 

 

 
 

Shares

 
 

 

 
 

Capital

 
 

 

 
 

Surplus

 
 

 

 
 

Operations

 
 

 

 
 

Other

 
 

 

 
 

AOCI

 
 

 

 
 

Earnings

 
 

 

 
 

Nutrien

 
 

 

 
 

Interest

 
 

 

 
 

Equity

 
 

  BALANCE – DECEMBER 31, 2020  

 
 

569,260,406

 
 

 

 
 

15,673

 
 

 

 
 

205

 
 

 

 
 

(62)

 
 

 

 
 

(57)

 
 

 

 
 

(119)

 
 

 

 
 

6,606

 
 

 

 
 

22,365

 
 

 

 
 

38

 
 

 

 
 

22,403

 
 

Net earnings

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

1,952

 
 

 

 
 

1,952

 
 

 

 
 

20

 
 

 

 
 

1,972

 
 

Other comprehensive (loss) income

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(128)

 
 

 

 
 

135

 
 

 

 
 

7

 
 

 

 
 

 
 

 

 
 

7

 
 

 

 
 

(1)

 
 

 

 
 

6

 
 

Shares repurchased (Note 8)

 
 

(2,460,097)

 
 

 

 
 

(68)

 
 

 

 
 

(46)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(36)

 
 

 

 
 

(150)

 
 

 

 
 

 
 

 

 
 

(150)

 
 

Dividends declared

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(786)

 
 

 

 
 

(786)

 
 

 

 
 

 
 

 

 
 

(786)

 
 

Non-controlling interest transactions

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(1)

 
 

 

 
 

(1)

 
 

 

 
 

(14)

 
 

 

 
 

(15)

 
 

Effect of share-based compensation

 
                   
 

including issuance of common shares

 
 

4,166,620

 
 

 

 
 

213

 
 

 

 
 

(12)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

201

 
 

 

 
 

 
 

 

 
 

201

 
 

Transfer of net gain on cash flow hedges

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

(10)

 
 

 

 
 

(10)

 
 

 

 
 

 
 

 

 
 

(10)

 
 

 

 
 

 
 

 

 
 

(10)

 
 

Share cancellation

 
 

(210,173)

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

  BALANCE – SEPTEMBER 30, 2021  

 
 

570,756,756

 
 

 

 
 

15,818

 
 

 

 
 

147

 
 

 

 
 

(190)

 
 

 

 
 

68

 
 

 

 
 

(122)

 
 

 

 
 

7,735

 
 

 

 
 

23,578

 
 

 

 
 

43

 
 

 

 
 

23,621

 
 

  BALANCE – DECEMBER 31, 2021  

 
 

  557,492,516  

 
 

 

 
 

  15,457  

 
 

 

 
 

  149  

 
 

 

 
 

  (176)  

 
 

 

 
 

  30  

 
 

 

 
 

  (146)  

 
 

 

 
 

  8,192  

 
 

 

 
 

  23,652  

 
 

 

 
 

  47  

 
 

 

 
 

  23,699  

 
 

Net earnings

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  6,548  

 
 

 

 
 

  6,548  

 
 

 

 
 

  21  

 
 

 

 
 

  6,569  

 
 

Other comprehensive loss

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (270)  

 
 

 

 
 

  (24)  

 
 

 

 
 

  (294)  

 
 

 

 
 

  

 
 

 

 
 

  (294)  

 
 

 

 
 

  (2)  

 
 

 

 
 

  (296)  

 
 

Shares repurchased (Note 8)

 
 

  (38,387,969)  

 
 

 

 
 

  (1,070)  

 
 

 

 
 

  (23)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (2,241)  

 
 

 

 
 

  (3,334)  

 
 

 

 
 

  

 
 

 

 
 

  (3,334)  

 
 

Dividends declared

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (773)  

 
 

 

 
 

  (773)  

 
 

 

 
 

  

 
 

 

 
 

  (773)  

 
 

Non-controlling interest transactions

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (18)  

 
 

 

 
 

  (18)  

 
 

Effect of share-based compensation

 
                   
 

including issuance of common shares

 
 

  3,058,561  

 
 

 

 
 

  201  

 
 

 

 
 

  (19)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  182  

 
 

 

 
 

  

 
 

 

 
 

  182  

 
 

Transfer of net loss on cash flow hedges

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  3  

 
 

 

 
 

  3  

 
 

 

 
 

  

 
 

 

 
 

  3  

 
 

 

 
 

  

 
 

 

 
 

  3  

 
 

Transfer of net actuarial gain on defined benefit plans

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (61)  

 
 

 

 
 

  (61)  

 
 

 

 
 

  61  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

  BALANCE – SEPTEMBER 30, 2022  

 
 

  522,163,108  

 
 

 

 
 

  14,588  

 
 

 

 
 

  107  

 
 

 

 
 

  (446)  

 
 

 

 
 

  (52)  

 
 

 

 
 

  (498)  

 
 

 

 
 

  11,787  

 
 

 

 
 

  25,984  

 
 

 

 
 

  48  

 
 

 

 
 

  26,032  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Condensed Consolidated Balance Sheets  

 
                                                                                                                                                                                                                                                                                              
 

 

 
 

 

 
 

  September 30  

 
 

 

 
 

December 31

 
 

As at

 
 

Note

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

2021

 
 

  ASSETS  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

 

 
 

  823  

 
 

 

 
 

443

 
 

 

 
 

499

 
 

Receivables

 
 

 

 
 

  8,591  

 
 

 

 
 

6,911

 
 

 

 
 

5,366

 
 

Inventories

 
 

 

 
 

  6,545  

 
 

 

 
 

4,674

 
 

 

 
 

6,328

 
 

Prepaid expenses and other current assets

 
 

 

 
 

  737  

 
 

 

 
 

654

 
 

 

 
 

1,653

 
 

 

 
 

 

 
 

  16,696  

 
 

 

 
 

12,682

 
 

 

 
 

13,846

 
 

Non-current assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Property, plant and equipment

 
 

3

 
 

  21,022  

 
 

 

 
 

19,704

 
 

 

 
 

20,016

 
 

Goodwill

 
 

 

 
 

  12,180  

 
 

 

 
 

12,220

 
 

 

 
 

12,220

 
 

Other intangible assets

 
 

 

 
 

  2,217  

 
 

 

 
 

2,349

 
 

 

 
 

2,340

 
 

Investments

 
 

 

 
 

  772  

 
 

 

 
 

682

 
 

 

 
 

703

 
 

Other assets

 
 

 

 
 

  937  

 
 

 

 
 

679

 
 

 

 
 

829

 
 

  TOTAL ASSETS  

 
 

 

 
 

  53,824  

 
 

 

 
 

48,316

 
 

 

 
 

49,954

 
 

  LIABILITIES  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Short-term debt

 
 

7

 
 

  4,454  

 
 

 

 
 

1,255

 
 

 

 
 

1,560

 
 

Current portion of long-term debt

 
 

 

 
 

  1,016  

 
 

 

 
 

46

 
 

 

 
 

545

 
 

Current portion of lease liabilities

 
 

 

 
 

  303  

 
 

 

 
 

281

 
 

 

 
 

286

 
 

Payables and accrued charges

 
 

 

 
 

  8,760  

 
 

 

 
 

6,930

 
 

 

 
 

10,052

 
 

 

 
 

 

 
 

  14,533  

 
 

 

 
 

8,512

 
 

 

 
 

12,443

 
 

Non-current liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Long-term debt

 
 

 

 
 

  7,020  

 
 

 

 
 

10,094

 
 

 

 
 

7,521

 
 

Lease liabilities

 
 

 

 
 

  884  

 
 

 

 
 

896

 
 

 

 
 

934

 
 

Deferred income tax liabilities

 
 

5

 
 

  3,489  

 
 

 

 
 

3,043

 
 

 

 
 

3,165

 
 

Pension and other post-retirement benefit liabilities

 
 

 

 
 

  337  

 
 

 

 
 

451

 
 

 

 
 

419

 
 

Asset retirement obligations and accrued environmental costs

 
 

 

 
 

  1,320  

 
 

 

 
 

1,523

 
 

 

 
 

1,566

 
 

Other non-current liabilities

 
 

 

 
 

  209  

 
 

 

 
 

176

 
 

 

 
 

207

 
 

  TOTAL LIABILITIES  

 
 

 

 
 

  27,792  

 
 

 

 
 

24,695

 
 

 

 
 

26,255

 
 

  SHAREHOLDERS' EQUITY  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Share capital

 
 

8

 
 

  14,588  

 
 

 

 
 

15,818

 
 

 

 
 

15,457

 
 

Contributed surplus

 
 

 

 
 

  107  

 
 

 

 
 

147

 
 

 

 
 

149

 
 

Accumulated other comprehensive loss

 
 

 

 
 

  (498)  

 
 

 

 
 

(122)

 
 

 

 
 

(146)

 
 

Retained earnings

 
 

 

 
 

  11,787  

 
 

 

 
 

7,735

 
 

 

 
 

8,192

 
 

Equity holders of Nutrien

 
 

 

 
 

  25,984  

 
 

 

 
 

23,578

 
 

 

 
 

23,652

 
 

Non-controlling interest

 
 

 

 
 

  48  

 
 

 

 
 

43

 
 

 

 
 

47

 
 

  TOTAL SHAREHOLDERS' EQUITY  

 
 

 

 
 

  26,032  

 
 

 

 
 

23,621

 
 

 

 
 

23,699

 
 

  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  

 
 

 

 
 

  53,824  

 
 

 

 
 

48,316

 
 

 

 
 

49,954

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

(See Notes to the Condensed Consolidated Financial Statements)

 
 

  Notes to the Condensed Consolidated Financial Statements  

 

  As at and for the Three and Nine Months Ended September 30, 2022  

 

  NOTE 1 BASIS OF PRESENTATION

 

Nutrien Ltd. (collectively with its subsidiaries, known as "Nutrien", "we", "us", "our" or "the Company") is the world's largest provider of crop inputs and services. Nutrien plays a critical role in helping growers around the globe increase food production in a sustainable manner.

 

These unaudited interim condensed consolidated financial statements ("interim financial statements") are based on International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board and have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2021 annual consolidated financial statements. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with our 2021 annual audited consolidated financial statements.

 

Certain immaterial 2021 figures have been reclassified in the condensed consolidated statements of cash flows and segment note.

 

In management's opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year.

 

These interim financial statements were authorized by the audit committee of the Board of Directors for issue on November 2, 2022.

 

  NOTE 2 SEGMENT INFORMATION

 

The Company has four reportable operating segments: Nutrien Ag Solutions ("Retail"), Potash, Nitrogen and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and it provides services directly to growers through a network of farm centers in North America, South America and Australia. The Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each produce.

 
                                                                                                                                                                                                                                                                                                                                                         
 

 

 
 

 

 
 

  Three Months Ended September 30, 2022  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

Sales

 
 

– third party

 
 

  3,967  

 
 

 

 
 

  1,968  

 
 

 

 
 

  1,666  

 
 

 

 
 

  587  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  8,188  

 
 

 

 
 

– intersegment

 
 

  13  

 
 

 

 
 

  84  

 
 

 

 
 

  236  

 
 

 

 
 

  126  

 
 

 

 
 

  

 
 

 

 
 

  (459)  

 
 

 

 
 

  

 
 

Sales

 
 

– total

 
 

  3,980  

 
 

 

 
 

  2,052  

 
 

 

 
 

  1,902  

 
 

 

 
 

  713  

 
 

 

 
 

  

 
 

 

 
 

  (459)  

 
 

 

 
 

  8,188  

 
 

Freight, transportation and distribution

 
 

  

 
 

 

 
 

  48  

 
 

 

 
 

  131  

 
 

 

 
 

  62  

 
 

 

 
 

  

 
 

 

 
 

  (37)  

 
 

 

 
 

  204  

 
 

Net sales

 
 

  3,980  

 
 

 

 
 

  2,004  

 
 

 

 
 

  1,771  

 
 

 

 
 

  651  

 
 

 

 
 

  

 
 

 

 
 

  (422)  

 
 

 

 
 

  7,984  

 
 

Cost of goods sold

 
 

  3,063  

 
 

 

 
 

  386  

 
 

 

 
 

  1,107  

 
 

 

 
 

  537  

 
 

 

 
 

  

 
 

 

 
 

  (371)  

 
 

 

 
 

  4,722  

 
 

Gross margin

 
 

  917  

 
 

 

 
 

  1,618  

 
 

 

 
 

  664  

 
 

 

 
 

  114  

 
 

 

 
 

  

 
 

 

 
 

  (51)  

 
 

 

 
 

  3,262  

 
 

Selling expenses

 
 

  821  

 
 

 

 
 

  3  

 
 

 

 
 

  7  

 
 

 

 
 

  1  

 
 

 

 
 

  (2)  

 
 

 

 
 

  (4)  

 
 

 

 
 

  826  

 
 

General and administrative expenses

 
 

  50  

 
 

 

 
 

  2  

 
 

 

 
 

  2  

 
 

 

 
 

  3  

 
 

 

 
 

  80  

 
 

 

 
 

  

 
 

 

 
 

  137  

 
 

Provincial mining taxes

 
 

  

 
 

 

 
 

  348  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  348  

 
 

Share-based compensation expense

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  39  

 
 

 

 
 

  

 
 

 

 
 

  39  

 
 

Impairment reversal of assets

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (330)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (330)  

 
 

Other expenses (income)

 
 

  19  

 
 

 

 
 

  (1)  

 
 

 

 
 

  (59)  

 
 

 

 
 

  15  

 
 

 

 
 

  59  

 
 

 

 
 

  3  

 
 

 

 
 

  36  

 
 

Earnings (loss) before finance costs and income taxes

 
 

  27  

 
 

 

 
 

  1,266  

 
 

 

 
 

  714  

 
 

 

 
 

  425  

 
 

 

 
 

  (176)  

 
 

 

 
 

  (50)  

 
 

 

 
 

  2,206  

 
 

Depreciation and amortization

 
 

  206  

 
 

 

 
 

  112  

 
 

 

 
 

  141  

 
 

 

 
 

  48  

 
 

 

 
 

  19  

 
 

 

 
 

  

 
 

 

 
 

  526  

 
 

EBITDA 1

 
 

  233  

 
 

 

 
 

  1,378  

 
 

 

 
 

  855  

 
 

 

 
 

  473  

 
 

 

 
 

  (157)  

 
 

 

 
 

  (50)  

 
 

 

 
 

  2,732  

 
 

Integration and restructuring related costs

 
 

  2  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  13  

 
 

 

 
 

  

 
 

 

 
 

  15  

 
 

Share-based compensation expense

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  39  

 
 

 

 
 

  

 
 

 

 
 

  39  

 
 

Impairment reversal of assets

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (330)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (330)  

 
 

Foreign exchange loss, net of related derivatives

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  11  

 
 

 

 
 

  

 
 

 

 
 

  11  

 
 

Adjusted EBITDA

 
 

  235  

 
 

 

 
 

  1,378  

 
 

 

 
 

  855  

 
 

 

 
 

  143  

 
 

 

 
 

  (94)  

 
 

 

 
 

  (50)  

 
 

 

 
 

  2,467  

 
 

Assets – at September 30, 2022

 
 

  23,507  

 
 

 

 
 

  14,078  

 
 

 

 
 

  11,802  

 
 

 

 
 

  2,742  

 
 

 

 
 

  2,500  

 
 

 

 
 

  (805)  

 
 

 

 
 

  53,824  

 
 

1 EBITDA is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

 
 
                                                                                                                                                                                                                                                                                                                                                                      
 

 

 
 

 

 
 

Three Months Ended September 30, 2021

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

3,336

 
 

 

 
 

1,188

 
 

 

 
 

1,037

 
 

 

 
 

463

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

6,024

 
 

 

 
 

– intersegment

 
 

11

 
 

 

 
 

107

 
 

 

 
 

162

 
 

 

 
 

39

 
 

 

 
 

 
 

 

 
 

(319)

 
 

 

 
 

 
 

Sales

 
 

– total

 
 

3,347

 
 

 

 
 

1,295

 
 

 

 
 

1,199

 
 

 

 
 

502

 
 

 

 
 

 
 

 

 
 

(319)

 
 

 

 
 

6,024

 
 

Freight, transportation and distribution

 
 

 
 

 

 
 

107

 
 

 

 
 

98

 
 

 

 
 

54

 
 

 

 
 

 
 

 

 
 

(39)

 
 

 

 
 

220

 
 

Net sales

 
 

3,347

 
 

 

 
 

1,188

 
 

 

 
 

1,101

 
 

 

 
 

448

 
 

 

 
 

 
 

 

 
 

(280)

 
 

 

 
 

5,804

 
 

Cost of goods sold

 
 

2,430

 
 

 

 
 

372

 
 

 

 
 

695

 
 

 

 
 

340

 
 

 

 
 

 
 

 

 
 

(198)

 
 

 

 
 

3,639

 
 

Gross margin

 
 

917

 
 

 

 
 

816

 
 

 

 
 

406

 
 

 

 
 

108

 
 

 

 
 

 
 

 

 
 

(82)

 
 

 

 
 

2,165

 
 

Selling expenses

 
 

746

 
 

 

 
 

3

 
 

 

 
 

7

 
 

 

 
 

2

 
 

 

 
 

(9)

 
 

 

 
 

 
 

 

 
 

749

 
 

General and administrative expenses

 
 

45

 
 

 

 
 

1

 
 

 

 
 

3

 
 

 

 
 

3

 
 

 

 
 

58

 
 

 

 
 

 
 

 

 
 

110

 
 

Provincial mining taxes

 
 

 
 

 

 
 

128

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

128

 
 

Share-based compensation expense

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

64

 
 

 

 
 

 
 

 

 
 

64

 
 

Impairment of assets

 
 

 
 

 

 
 

7

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

7

 
 

Other expenses (income)

 
 

17

 
 

 

 
 

7

 
 

 

 
 

(11)

 
 

 

 
 

7

 
 

 

 
 

30

 
 

 

 
 

 
 

 

 
 

50

 
 

Earnings (loss) before finance costs and income taxes

 
 

109

 
 

 

 
 

670

 
 

 

 
 

407

 
 

 

 
 

96

 
 

 

 
 

(143)

 
 

 

 
 

(82)

 
 

 

 
 

1,057

 
 

Depreciation and amortization

 
 

182

 
 

 

 
 

131

 
 

 

 
 

125

 
 

 

 
 

39

 
 

 

 
 

12

 
 

 

 
 

 
 

 

 
 

489

 
 

EBITDA

 
 

291

 
 

 

 
 

801

 
 

 

 
 

532

 
 

 

 
 

135

 
 

 

 
 

(131)

 
 

 

 
 

(82)

 
 

 

 
 

1,546

 
 

Integration and restructuring related costs

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

8

 
 

 

 
 

 
 

 

 
 

8

 
 

Share-based compensation expense

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

64

 
 

 

 
 

 
 

 

 
 

64

 
 

Impairment of assets

 
 

 
 

 

 
 

7

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

7

 
 

COVID-19 related expenses

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

16

 
 

 

 
 

 
 

 

 
 

16

 
 

Foreign exchange loss, net of related derivatives

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

1

 
 

 

 
 

 
 

 

 
 

1

 
 

Adjusted EBITDA

 
 

291

 
 

 

 
 

808

 
 

 

 
 

532

 
 

 

 
 

135

 
 

 

 
 

(42)

 
 

 

 
 

(82)

 
 

 

 
 

1,642

 
 

Assets – at December 31, 2021

 
 

22,387

 
 

 

 
 

13,148

 
 

 

 
 

11,093

 
 

 

 
 

1,699

 
 

 

 
 

2,266

 
 

 

 
 

(639)

 
 

 

 
 

49,954

 
 
                                                                                                                                                                                                                                                                                                                                                                                    
 

 

 
 

 

 
 

  Nine Months Ended September 30, 2022  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Corporate  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Retail  

 
 

 

 
 

  Potash  

 
 

 

 
 

  Nitrogen  

 
 

 

 
 

  Phosphate  

 
 

 

 
 

  and Others  

 
 

 

 
 

  Eliminations  

 
 

 

 
 

  Consolidated  

 
 

Sales

 
 

– third party

 
 

  17,177  

 
 

 

 
 

  6,345  

 
 

 

 
 

  5,078  

 
 

 

 
 

  1,751  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  30,351  

 
 

 

 
 

– intersegment

 
 

  86  

 
 

 

 
 

  396  

 
 

 

 
 

  1,021  

 
 

 

 
 

  303  

 
 

 

 
 

  

 
 

 

 
 

  (1,806)  

 
 

 

 
 

  

 
 

Sales

 
 

– total

 
 

  17,263  

 
 

 

 
 

  6,741  

 
 

 

 
 

  6,099  

 
 

 

 
 

  2,054  

 
 

 

 
 

  

 
 

 

 
 

  (1,806)  

 
 

 

 
 

  30,351  

 
 

Freight, transportation and distribution

 
 

  

 
 

 

 
 

  219  

 
 

 

 
 

  358  

 
 

 

 
 

  178  

 
 

 

 
 

  

 
 

 

 
 

  (127)  

 
 

 

 
 

  628  

 
 

Net sales

 
 

  17,263  

 
 

 

 
 

  6,522  

 
 

 

 
 

  5,741  

 
 

 

 
 

  1,876  

 
 

 

 
 

  

 
 

 

 
 

  (1,679)  

 
 

 

 
 

  29,723  

 
 

Cost of goods sold

 
 

  13,161  

 
 

 

 
 

  1,090  

 
 

 

 
 

  3,159  

 
 

 

 
 

  1,399  

 
 

 

 
 

  

 
 

 

 
 

  (1,604)  

 
 

 

 
 

  17,205  

 
 

Gross margin

 
 

  4,102  

 
 

 

 
 

  5,432  

 
 

 

 
 

  2,582  

 
 

 

 
 

  477  

 
 

 

 
 

  

 
 

 

 
 

  (75)  

 
 

 

 
 

  12,518  

 
 

Selling expenses

 
 

  2,556  

 
 

 

 
 

  9  

 
 

 

 
 

  22  

 
 

 

 
 

  5  

 
 

 

 
 

  (6)  

 
 

 

 
 

  (16)  

 
 

 

 
 

  2,570  

 
 

General and administrative expenses

 
 

  149  

 
 

 

 
 

  6  

 
 

 

 
 

  12  

 
 

 

 
 

  9  

 
 

 

 
 

  227  

 
 

 

 
 

  

 
 

 

 
 

  403  

 
 

Provincial mining taxes

 
 

  

 
 

 

 
 

  959  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  959  

 
 

Share-based compensation expense

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  122  

 
 

 

 
 

  

 
 

 

 
 

  122  

 
 

Impairment reversal of assets

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

Other expenses (income)

 
 

  28  

 
 

 

 
 

  1  

 
 

 

 
 

  (139)  

 
 

 

 
 

  27  

 
 

 

 
 

  160  

 
 

 

 
 

  17  

 
 

 

 
 

  94  

 
 

Earnings (loss) before finance costs and income taxes

 
 

  1,369  

 
 

 

 
 

  4,457  

 
 

 

 
 

  2,687  

 
 

 

 
 

  1,216  

 
 

 

 
 

  (503)  

 
 

 

 
 

  (76)  

 
 

 

 
 

  9,150  

 
 

Depreciation and amortization

 
 

  550  

 
 

 

 
 

  354  

 
 

 

 
 

  403  

 
 

 

 
 

  130  

 
 

 

 
 

  55  

 
 

 

 
 

  

 
 

 

 
 

  1,492  

 
 

EBITDA

 
 

  1,919  

 
 

 

 
 

  4,811  

 
 

 

 
 

  3,090  

 
 

 

 
 

  1,346  

 
 

 

 
 

  (448)  

 
 

 

 
 

  (76)  

 
 

 

 
 

  10,642  

 
 

Integration and restructuring related costs

 
 

  2  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  33  

 
 

 

 
 

  

 
 

 

 
 

  35  

 
 

Share-based compensation expense

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  122  

 
 

 

 
 

  

 
 

 

 
 

  122  

 
 

Impairment reversal of assets

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (780)  

 
 

COVID-19 related expenses

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  8  

 
 

 

 
 

  

 
 

 

 
 

  8  

 
 

Foreign exchange loss, net of related derivatives

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  67  

 
 

 

 
 

  

 
 

 

 
 

  67  

 
 

Gain on disposal of investment

 
 

  (19)  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  

 
 

 

 
 

  (19)  

 
 

Adjusted EBITDA

 
 

  1,902  

 
 

 

 
 

  4,811  

 
 

 

 
 

  3,090  

 
 

 

 
 

  566  

 
 

 

 
 

  (218)  

 
 

 

 
 

  (76)  

 
 

 

 
 

  10,075  

 
 

Assets – at September 30, 2022

 
 

  23,507  

 
 

 

 
 

  14,078  

 
 

 

 
 

  11,802  

 
 

 

 
 

  2,742  

 
 

 

 
 

  2,500  

 
 

 

 
 

  (805)  

 
 

 

 
 

  53,824  

 
 
                                                                                                                                                                                                                                                                                                                                                                                    
 

 

 
 

 

 
 

Nine Months Ended September 30, 2021

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Corporate

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Retail

 
 

 

 
 

Potash

 
 

 

 
 

Nitrogen

 
 

 

 
 

Phosphate

 
 

 

 
 

and Others

 
 

 

 
 

Eliminations

 
 

 

 
 

Consolidated

 
 

Sales

 
 

– third party

 
 

13,818

 
 

 

 
 

2,663

 
 

 

 
 

2,740

 
 

 

 
 

1,224

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

20,445

 
 

 

 
 

– intersegment

 
 

38

 
 

 

 
 

258

 
 

 

 
 

629

 
 

 

 
 

171

 
 

 

 
 

 
 

 

 
 

(1,096)

 
 

 

 
 

 
 

Sales

 
 

– total

 
 

13,856

 
 

 

 
 

2,921

 
 

 

 
 

3,369

 
 

 

 
 

1,395

 
 

 

 
 

 
 

 

 
 

(1,096)

 
 

 

 
 

20,445

 
 

Freight, transportation and distribution

 
 

 
 

 

 
 

305

 
 

 

 
 

329

 
 

 

 
 

159

 
 

 

 
 

 
 

 

 
 

(140)

 
 

 

 
 

653

 
 

Net sales

 
 

13,856

 
 

 

 
 

2,616

 
 

 

 
 

3,040

 
 

 

 
 

1,236

 
 

 

 
 

 
 

 

 
 

(956)

 
 

 

 
 

19,792

 
 

Cost of goods sold

 
 

10,429

 
 

 

 
 

980

 
 

 

 
 

2,068

 
 

 

 
 

978

 
 

 

 
 

 
 

 

 
 

(866)

 
 

 

 
 

13,589

 
 

Gross margin

 
 

3,427

 
 

 

 
 

1,636

 
 

 

 
 

972

 
 

 

 
 

258

 
 

 

 
 

 
 

 

 
 

(90)

 
 

 

 
 

6,203

 
 

Selling expenses

 
 

2,276

 
 

 

 
 

8

 
 

 

 
 

22

 
 

 

 
 

5

 
 

 

 
 

(24)

 
 

 

 
 

 
 

 

 
 

2,287

 
 

General and administrative expenses

 
 

125

 
 

 

 
 

6

 
 

 

 
 

8

 
 

 

 
 

8

 
 

 

 
 

182

 
 

 

 
 

 
 

 

 
 

329

 
 

Provincial mining taxes

 
 

 
 

 

 
 

293

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

293

 
 

Share-based compensation expense

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

125

 
 

 

 
 

 
 

 

 
 

125

 
 

Impairment of assets

 
 

 
 

 

 
 

7

 
 

 

 
 

5

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

12

 
 

Other expenses (income)

 
 

66

 
 

 

 
 

19

 
 

 

 
 

(36)

 
 

 

 
 

13

 
 

 

 
 

141

 
 

 

 
 

 
 

 

 
 

203

 
 

Earnings (loss) before finance costs and income taxes

 
 

960

 
 

 

 
 

1,303

 
 

 

 
 

973

 
 

 

 
 

232

 
 

 

 
 

(424)

 
 

 

 
 

(90)

 
 

 

 
 

2,954

 
 

Depreciation and amortization

 
 

528

 
 

 

 
 

371

 
 

 

 
 

409

 
 

 

 
 

112

 
 

 

 
 

34

 
 

 

 
 

 
 

 

 
 

1,454

 
 

EBITDA

 
 

1,488

 
 

 

 
 

1,674

 
 

 

 
 

1,382

 
 

 

 
 

344

 
 

 

 
 

(390)

 
 

 

 
 

(90)

 
 

 

 
 

4,408

 
 

Integration and restructuring related costs

 
 

8

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

39

 
 

 

 
 

 
 

 

 
 

47

 
 

Share-based compensation expense

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

125

 
 

 

 
 

 
 

 

 
 

125

 
 

Impairment of assets

 
 

 
 

 

 
 

7

 
 

 

 
 

5

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

12

 
 

COVID-19 related expenses

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

34

 
 

 

 
 

 
 

 

 
 

34

 
 

Foreign exchange loss, net of related derivatives

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

1

 
 

 

 
 

 
 

 

 
 

1

 
 

Cloud computing transition adjustment

 
 

1

 
 

 

 
 

2

 
 

 

 
 

 
 

 

 
 

 
 

 

 
 

33

 
 

 

 
 

 
 

 

 
 

36

 
 

Adjusted EBITDA

 
 

1,497

 
 

 

 
 

1,683

 
 

 

 
 

1,387

 
 

 

 
 

344

 
 

 

 
 

(158)

 
 

 

 
 

(90)

 
 

 

 
 

4,663

 
 

Assets – at December 31, 2021

 
 

22,387

 
 

 

 
 

13,148

 
 

 

 
 

11,093

 
 

 

 
 

1,699

 
 

 

 
 

2,266

 
 

 

 
 

(639)

 
 

 

 
 

49,954

 
 

Presented below is revenue from contracts with customers disaggregated by product line or geographic location for each reportable segment.

 
                                                                                                                                                                                                                                           
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

  Retail sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Crop nutrients

 
 

  1,605  

 
 

 

 
 

1,194

 
 

 

 
 

  7,740  

 
 

 

 
 

5,255

 
 

Crop protection products

 
 

  1,716  

 
 

 

 
 

1,469

 
 

 

 
 

  6,086  

 
 

 

 
 

5,220

 
 

Seed

 
 

  134  

 
 

 

 
 

140

 
 

 

 
 

  1,861  

 
 

 

 
 

1,819

 
 

Merchandise

 
 

  241  

 
 

 

 
 

265

 
 

 

 
 

  755  

 
 

 

 
 

763

 
 

Nutrien Financial

 
 

  65  

 
 

 

 
 

54

 
 

 

 
 

  205  

 
 

 

 
 

138

 
 

Services and other 1

 
 

  244  

 
 

 

 
 

252

 
 

 

 
 

  729  

 
 

 

 
 

737

 
 

Nutrien Financial elimination 1,2

 
 

  (25)  

 
 

 

 
 

(27)

 
 

 

 
 

  (113)  

 
 

 

 
 

(76)

 
 

 

 
 

  3,980  

 
 

 

 
 

3,347

 
 

 

 
 

  17,263  

 
 

 

 
 

13,856

 
 

  Potash sales by geography  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

North America

 
 

  484  

 
 

 

 
 

590

 
 

 

 
 

  2,168  

 
 

 

 
 

1,446

 
 

Offshore 3

 
 

  1,568  

 
 

 

 
 

705

 
 

 

 
 

  4,573  

 
 

 

 
 

1,475

 
 

 

 
 

  2,052  

 
 

 

 
 

1,295

 
 

 

 
 

  6,741  

 
 

 

 
 

2,921

 
 

  Nitrogen sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Ammonia

 
 

  695  

 
 

 

 
 

401

 
 

 

 
 

  2,072  

 
 

 

 
 

994

 
 

Urea

 
 

  422  

 
 

 

 
 

339

 
 

 

 
 

  1,543  

 
 

 

 
 

985

 
 

Solutions, nitrates and sulfates

 
 

  512  

 
 

 

 
 

326

 
 

 

 
 

  1,564  

 
 

 

 
 

852

 
 

Other nitrogen and purchased products

 
 

  273  

 
 

 

 
 

133

 
 

 

 
 

  920  

 
 

 

 
 

538

 
 

 

 
 

  1,902  

 
 

 

 
 

1,199

 
 

 

 
 

  6,099  

 
 

 

 
 

3,369

 
 

  Phosphate sales by product line  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Manufactured product

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Fertilizer

 
 

  414  

 
 

 

 
 

306

 
 

 

 
 

  1,204  

 
 

 

 
 

836

 
 

Industrial and feed

 
 

  206  

 
 

 

 
 

146

 
 

 

 
 

  594  

 
 

 

 
 

405

 
 

Other phosphate and purchased products

 
 

  93  

 
 

 

 
 

50

 
 

 

 
 

  256  

 
 

 

 
 

154

 
 

 

 
 

  713  

 
 

 

 
 

502

 
 

 

 
 

  2,054  

 
 

 

 
 

1,395

 
 

1 Certain immaterial 2021 figures have been reclassified.

 
 

2 Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

 
 

3 Relates to Canpotex Limited ("Canpotex") (Note 10) and includes provisional pricing adjustments for the three months ended September 30, 2022 of $(187) (2021 – $109) and the nine months ended September 30, 2022 of $66 (2021 – $160).

 
 

  NOTE 3 IMPAIRMENT OF ASSETS

 

  Phosphate Impairment Reversal  

 

In the three months ended September 30, 2022, we continued to revise our near-term pricing forecasts due to continued global export restrictions from major producers and continued our review of our previously impaired Phosphate cash-generating unit ("CGU"), White Springs.

 

In 2017 and 2020, we recorded a total impairment of assets at our White Springs CGU relating to property, plant and equipment of $250 and $215, respectively. Due to increases in our forecast, the recoverable amount of our White Springs CGU is $770 which is above its carrying amount of $425. As a result, during the three months ended September 30, 2022, we recorded a full impairment reversal, net of depreciation, of $330 in the statement of earnings relating to property, plant and equipment.

 

During the nine months ended September 30, 2022, we recorded the following impairment reversals:

 
                                                                                                                                                                                                                                                                                                                                                
 

  CGU  

 
                

 

 
 

 

 
 

  Aurora  

 
 

 

 
    

  White Springs  

 
 

Segment

 
                

 

 
 

 

 
 

 

 
 

Phosphate

 
 
 

Impairment reversal indicator

 
                

 

 
 

 

 
 

Higher forecasted global prices

 
 

Date of impairment reversal

 
                

 

 
 

 

 
 

June 30, 2022

 
 

 

 
    

September 30, 2022

 
 

Pre-tax impairment reversal amount ($)

 
                

 

 
 

 

 
 

450

 
 

 

 
    

330

 
 

Valuation methodology

 
 

Fair value less costs of disposal ("FVLCD") a level 3 measurement

 
 

 

 
 

Value in use ("VIU")

 
 

Valuation technique

 
 

Five-year DCF 1 plus terminal year to end of mine life

 
 

 

 
 

DCF 1 to end of mine life

 
 

Key assumptions

 
                

 

 
 

 

 
 

 

 
 

 

 
    

 

 
 

End of mine life 2 (year)

 
                

 

 
 

 

 
 

2050

 
 

 

 
    

2030

 
 

Long-term growth rate (%)

 
                

 

 
 

 

 
 

2.0

 
 

 

 
    

n/a

 
 

Post-tax discount rate (%)

 
                

 

 
 

 

 
 

10.4

 
 

 

 
    

12.0 (pre-tax - 15.2) 3

 
 

Forecasted EBITDA 4 ($)

 
                

 

 
 

 

 
 

3,090

 
 

 

 
    

980

 
 

1 Discounted Cash Flow.

 
                

 

 
 

 

 
 

 

 
 

 

 
    

 

 
 

2 Includes proven and probable reserves.

 
                

 

 
 

 

 
 

 

 
 

 

 
    

 

 
 

3 Discount rate used in the previous measurement was 12.0% (pre-tax - 16.0%).

 
                       
 

4 First five years of the forecast period.

 
                

 

 
 

 

 
 

 

 
 

 

 
    

 

 
 

The recoverable amount estimate is most sensitive to the following key assumptions: our internal sales and input price forecasts, which consider projections from independent third-party data sources, discount rate, and expected mine life. We used key assumptions that were based on historical data and estimates of future results from internal sources, external price benchmarks, and mineral reserve technical reports, as well as industry and market trends.

 

  Goodwill Impairment Indicators  

 

During the nine months ended September 30, 2022, North American central banks continued to increase their benchmark borrowing rates. Benchmark borrowing rates are used as the risk-free rate which is a component of determining our discount rate for impairment testing. As a result of these increases, we revised our discount rates and increased our Retail – North America group of CGUs discount rate to 8.5 percent (previous impairment analysis – 8.0 percent at June 30, 2022) and this triggered an impairment test to be performed. We used the FVLCD methodology based on after-tax discounted cash flows (five-year projections and a terminal year thereafter) and incorporated assumptions an independent market participant would apply. FVLCD is a Level 3 measurement.

 
                         
 

 

 
 

 

 
 

As at

 
 

 

 
 

  As at  

 
 

  Retail - North America group of CGUs  

 
 

 

 
 

June 30, 2022

 
 

 

 
 

  September 30, 2022  

 
 

Carrying amount of goodwill (billions)

 
 

 

 
 

6.9

 
 

 

 
 

  6.9  

 
 

Excess carrying amount over recoverable amount (billions)

 
 

 

 
 

0.8

 
 

 

 
 

  nil  

 
 

Excess carrying amount over recoverable amount (%)

 
 

 

 
 

7

 
 

 

 
 

  nil  

 
 

Goodwill is more susceptible to impairment risk if there is an increase in the discount rate, or a deterioration in business operating results or economic conditions and actual results do not meet our forecasts. As at September 30, 2022, the Retail – North America group of CGUs carrying amount was equal to its recoverable amount. A 25 basis point increase in the discount rate will result in an impairment of the carrying amount of goodwill of approximately $500. A decrease in forecasted EBITDA and cash flows or a reduction in the terminal growth rate will also result in impairment in the future.

 
            
 

 

 
 

 

 
 

 

 
 

  Value Used in Impairment  

 
 

  Key Assumptions  

 
 

  Model  

 
 

Terminal growth rate (%)

 
 

2.5

 
 

Forecasted EBITDA over forecast period (billions)

 
 

7.6

 
 

Discount rate (%)

 
 

8.5

 
 

  NOTE 4 OTHER EXPENSES (INCOME)

 
                                                                                        
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Integration and restructuring related costs

 
 

  15  

 
 

 

 
 

8

 
 

 

 
 

  35  

 
 

 

 
 

47

 
 

Foreign exchange loss, net of related derivatives

 
 

  11  

 
 

 

 
 

1

 
 

 

 
 

  67  

 
 

 

 
 

4

 
 

Earnings of equity-accounted investees

 
 

  (82)  

 
 

 

 
 

(21)

 
 

 

 
 

  (200)  

 
 

 

 
 

(43)

 
 

Bad debt expense

 
 

  4  

 
 

 

 
 

7

 
 

 

 
 

  18  

 
 

 

 
 

22

 
 

COVID-19 related expenses

 
 

  

 
 

 

 
 

16

 
 

 

 
 

  8  

 
 

 

 
 

34

 
 

Gain on disposal of investment

 
 

  

 
 

 

 
 

 
 

 

 
 

  (19)  

 
 

 

 
 

 
 

Cloud computing transition adjustment

 
 

  

 
 

 

 
 

 
 

 

 
 

  

 
 

 

 
 

36

 
 

Other expenses

 
 

  88  

 
 

 

 
 

39

 
 

 

 
 

  185  

 
 

 

 
 

103

 
 

 

 
 

  36  

 
 

 

 
 

50

 
 

 

 
 

  94  

 
 

 

 
 

203

 
 

  NOTE 5 INCOME TAXES

 

A separate estimated average annual effective income tax rate was determined for each taxing jurisdiction and applied individually to the interim period pre-tax earnings for each jurisdiction.

 
                                                
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Income tax expense

 
 

  487  

 
 

 

 
 

209

 
 

 

 
 

  2,206  

 
 

 

 
 

615

 
 

Actual effective tax rate on earnings (%)

 
 

  24  

 
 

 

 
 

23

 
 

 

 
 

  25  

 
 

 

 
 

24

 
 

Actual effective tax rate including discrete items (%)

 
 

  24  

 
 

 

 
 

22

 
 

 

 
 

  25  

 
 

 

 
 

24

 
 

Discrete tax adjustments that impacted the tax rate

 
 

  (12)  

 
 

 

 
 

(10)

 
 

 

 
 

  8  

 
 

 

 
 

(13)

 
 

Income tax balances within the condensed consolidated balance sheets were comprised of the following:

 
                                                       
 

Income Tax Assets and Liabilities

 
 

Balance Sheet Location

 
 

  As at September 30, 2022  

 
 

 

 
 

As at December 31, 2021

 
 

Income tax assets

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Receivables

 
 

  49  

 
 

 

 
 

223

 
 

Non-current

 
 

Other assets

 
 

  132  

 
 

 

 
 

166

 
 

Deferred income tax assets

 
 

Other assets

 
 

  427  

 
 

 

 
 

262

 
 

Total income tax assets

 
 

 

 
 

  608  

 
 

 

 
 

651

 
 

Income tax liabilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current

 
 

Payables and accrued charges

 
 

  943  

 
 

 

 
 

606

 
 

Non-current

 
 

Other non-current liabilities

 
 

  51  

 
 

 

 
 

44

 
 

Deferred income tax liabilities

 
 

Deferred income tax liabilities

 
 

  3,489  

 
 

 

 
 

3,165

 
 

Total income tax liabilities

 
 

 

 
 

  4,483  

 
 

 

 
 

3,815

 
 

  NOTE 6 FINANCIAL INSTRUMENTS

 

   Fair Value   

 

Estimated fair values for financial instruments are designed to approximate amounts for which the instruments could be exchanged in a current arm's-length transaction between knowledgeable, willing parties. The valuation policies and procedures for financial reporting purposes are determined by our finance department. There have been no changes to our valuation methods presented in Note 10 of the 2021 annual consolidated financial statements and those valuation methods have been applied in these interim financial statements.

 

The following table presents our fair value hierarchy for financial instruments carried at fair value on a recurring basis or measured at amortized cost:

 
                                                                                                                                                                                                                                                       
 

 

 
 

  September 30, 2022  

 
 

 

 
 

December 31, 2021

 
 

 

 
 

  Carrying  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Carrying

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Financial assets (liabilities) measured at  

 
 

  Amount  

 
 

 

 
 

  Level 1  

 
 

 

 
 

  Level 2  

 
 

 

 
 

  Level 3  

 
 

 

 
 

Amount

 
 

 

 
 

Level 1

 
 

 

 
 

Level 2

 
 

 

 
 

Level 3

 
 

  Fair value on a recurring basis 1  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Cash and cash equivalents

 
 

  823  

 
 

 

 
 

  

 
 

 

 
 

  823  

 
 

 

 
 

  

 
 

 

 
 

499

 
 

 

 
 

 
 

 

 
 

499

 
 

 

 
 

 
 

Derivative instrument assets

 
 

  11  

 
 

 

 
 

  

 
 

 

 
 

  11  

 
 

 

 
 

  

 
 

 

 
 

19

 
 

 

 
 

 
 

 

 
 

19

 
 

 

 
 

 
 

Other current financial assets - marketable securities 2

 
 

  189  

 
 

 

 
 

  24  

 
 

 

 
 

  165  

 
 

 

 
 

  

 
 

 

 
 

134

 
 

 

 
 

19

 
 

 

 
 

115

 
 

 

 
 

 
 

Investments at FVTOCI 3

 
 

  183  

 
 

 

 
 

  173  

 
 

 

 
 

  

 
 

 

 
 

  10  

 
 

 

 
 

244

 
 

 

 
 

234

 
 

 

 
 

 
 

 

 
 

10

 
 

Derivative instrument liabilities

 
 

  (51)  

 
 

 

 
 

  

 
 

 

 
 

  (51)  

 
 

 

 
 

  

 
 

 

 
 

(20)

 
 

 

 
 

 
 

 

 
 

(20)

 
 

 

 
 

 
 

  Amortized cost  

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Current portion of long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes and debentures

 
 

  (999)  

 
 

 

 
 

  (491)  

 
 

 

 
 

  (500)  

 
 

 

 
 

  

 
 

 

 
 

(500)

 
 

 

 
 

(506)

 
 

 

 
 

 
 

 

 
 

 
 

Fixed and floating rate debt

 
 

  (17)  

 
 

 

 
 

  

 
 

 

 
 

  (17)  

 
 

 

 
 

  

 
 

 

 
 

(45)

 
 

 

 
 

 
 

 

 
 

(45)

 
 

 

 
 

 
 

Long-term debt

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Notes and debentures

 
 

  (6,902)  

 
 

 

 
 

  (1,362)  

 
 

 

 
 

  (4,740)  

 
 

 

 
 

  

 
 

 

 
 

(7,424)

 
 

 

 
 

(4,021)

 
 

 

 
 

(4,709)

 
 

 

 
 

 
 

Fixed and floating rate debt

 
 

  (118)  

 
 

 

 
 

  

 
 

 

 
 

  (118)  

 
 

 

 
 

  

 
 

 

 
 

(97)

 
 

 

 
 

 
 

 

 
 

(97)

 
 

 

 
 

 
 

1 During the periods ended September 30, 2022 and December 31, 2021, there were no transfers between levelling for financial instruments measured at fair value on a recurring basis.

 
 

2 Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities using quoted prices of instruments with similar terms and credit risk.

 
 

3 Investments at fair value through other comprehensive income ("FVTOCI") is primarily comprised of shares in Sinofert Holdings Ltd.

 
 

  NOTE 7 SHORT-TERM DEBT

 

Short-term debt was comprised of:

 
                                                                                                 
 

 

 
 

Rate of

 

Interest (%)

 
 

 

 
 

Total Facility Limit as at September 30, 2022

 
 

 

 
 

  As at  

 

  September 30, 2022  

 
 

 

 
 

As at

 

December 31, 2021

 
 

Credit facilities

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

Unsecured revolving term credit facility

 
 

n/a

 
 

 

 
 

4,500

 
 

 

 
 

  

 
 

 

 
 

 
 

Unsecured revolving term credit facility

 
 

4.1

 
 

 

 
 

2,000

 
 

 

 
 

  1,000  

 
 

 

 
 

 
 

Uncommitted revolving demand facility

 
 

4.0

 
 

 

 
 

1,000

 
 

 

 
 

  500  

 
 

 

 
 

 
 

Other credit facilities 1

 
 

 

 
 

 

 
 

760

 
 

 

 
 

 

 
 

 

 
 

 

 
 

South American

 
 

1.5 - 21.7

 
 

 

 
 

 

 
 

 

 
 

  194  

 
 

 

 
 

74

 
 

Australian

 
 

3.6

 
 

 

 
 

 

 
 

 

 
 

  97  

 
 

 

 
 

211

 
 

Other

 
 

3.3

 
 

 

 
 

 

 
 

 

 
 

  8  

 
 

 

 
 

28

 
 

Commercial paper

 
 

2.9 - 4.0

 
 

 

 
 

 

 
 

 

 
 

  2,530  

 
 

 

 
 

1,170

 
 

Other short-term debt

 
 

n/a

 
 

 

 
 

 

 
 

 

 
 

  125  

 
 

 

 
 

77

 
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  4,454  

 
 

 

 
 

1,560

 
 

1 Total facility limit amounts include some facilities with maturities in excess of one year.

 
 

The amount available under the commercial paper program is limited to the availability of backup funds under the $4,500 unsecured revolving term credit facility and excess cash invested in highly liquid securities. During the three months ended September 30, 2022, we extended the maturity date of the $4,500 unsecured revolving term credit facility from June 4, 2026 to September 14, 2027. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2021 Annual Report.

 

During the three months ended September 30, 2022, we entered into a new $2,000 revolving term credit facility, with the same principal covenants and events of default as our existing $4,500 unsecured revolving term credit facility. The $2,000 non-revolving term credit facilities we entered into in July 2022 to help temporarily manage normal seasonal working capital swings were closed prior to September 30, 2022.

 

  NOTE 8 SHARE CAPITAL

 

   Share Repurchase Programs   

 
                                                             
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  Maximum  

 
 

 

 
 

  Maximum  

 
 

 

 
 

  Number of  

 
 

 

 
 

  Commencement  

 
 

 

 
 

 

 
 

 

 
 

  Shares for  

 
 

 

 
 

  Shares for  

 
 

 

 
 

  Shares  

 
 

 

 
 

  Date  

 
 

 

 
 

  Expiry  

 
 

 

 
 

  Repurchase  

 
 

 

 
 

  Repurchase (%)  

 
 

 

 
 

  Repurchased  

 
 

2020 Normal Course Issuer Bid

 
 

February 27, 2020

 
 

 

 
 

February 26, 2021

 
 

 

 
 

28,572,458

 
 

 

 
 

5

 
 

 

 
 

710,100

 
 

2021 Normal Course Issuer Bid

 
 

March 1, 2021

 
 

 

 
 

February 28, 2022

 
 

 

 
 

28,468,448

 
 

 

 
 

5

 
 

 

 
 

22,186,395

 
 

2022 Normal Course Issuer Bid 1

 
 

March 1, 2022

 
 

 

 
 

February 28, 2023

 
 

 

 
 

55,111,110

 
 

 

 
 

10

 
 

 

 
 

32,183,728

 
 

1 The 2022 normal course issuer bid will expire earlier than the date above if we acquire the maximum number of common shares allowable or otherwise decide not to make any further repurchases.

 
 

Purchases under the normal course issuer bids were, or may be, made through open market purchases at market prices as well as by other means permitted by applicable securities laws, including private agreements.

 

The following table summarizes our share repurchase activities during the period:

 
                                        
 

 

 
 

  Three Months Ended  

 
 

 

 
 

  Nine Months Ended  

 
 

 

 
 

  September 30  

 
 

 

 
 

  September 30  

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

 

 
 

  2022  

 
 

 

 
 

2021

 
 

Number of common shares repurchased for cancellation

 
 

  19,027,561  

 
 

 

 
 

2,427,369

 
 

 

 
 

  38,387,969  

 
 

 

 
 

2,460,097

 
 

Average price per share (US dollars)

 
 

  89.25  

 
 

 

 
 

61.18

 
 

 

 
 

  86.85  

 
 

 

 
 

61.07

 
 

Total cost

 
 

  1,698  

 
 

 

 
 

148

 
 

 

 
 

  3,334  

 
 

 

 
 

150

 
 

As of November 1, 2022, an additional 1,981,462 common shares were repurchased for cancellation at a cost of $165 and an average price per share of $83.25.

 

   Dividends Declared   

 

We declared a dividend per share of $0.48 (2021 – $0.46) during the three months ended September 30, 2022, payable on October 14, 2022 to shareholders of record on September 30, 2022.

 

  NOTE 9 SEASONALITY

 

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. The results of this seasonality have a corresponding effect on receivables from customers and rebates receivables, inventories, prepaid expenses and other current assets and trade payables. Our short-term debt also fluctuates during the year to meet working capital needs. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

 

  NOTE 10 RELATED PARTY TRANSACTIONS

 

We sell potash outside Canada and the United States exclusively through Canpotex. Canpotex sells potash to buyers in export markets pursuant to term and spot contracts at agreed upon prices. Our revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. Sales to Canpotex are shown in Note 2.

 
        
 

As at

 
 

  September 30, 2022  

 
 

 

 
 

December 31, 2021

 
 

Receivables from Canpotex

 
 

  1,454  

 
 

 

 
 

828

 
 

  NOTE 11 BUSINESS COMBINATIONS

 

Subsequent to September 30, 2022, we completed the previously announced acquisition of Casa do Adubo S.A. ("Casa do Adubo") on October 1, 2022 for a preliminary purchase price, net of cash and cash equivalents acquired, of $279. We acquired 100% of the issued and outstanding Casa do Adubo stock. Casa do Adubo is an agriculture retailer in Brazil with 39 retail locations and 10 distribution centers. The expected benefits of the acquisition resulting in goodwill include: synergies from expected reduction in operating costs, wider distribution channel for selling products, a large assembled workforce and a potential increase in our customer base.

 

We have engaged independent valuation experts to assist in determining the fair value of certain assets acquired and liabilities assumed and related deferred income tax impacts. Given the transaction closed on October 1, 2022, as at the date of our interim financial statements we do not have sufficient information to determine fair values and complete the purchase price allocation or the proforma financial information disclosures. As part of our due diligence process, we are continuing to obtain and verify information required to determine the fair value of certain assets acquired and liabilities assumed and the amount of deferred income taxes arising on their recognition. We expect to finalize the amounts recognized as we obtain the information necessary to complete the analysis within one year from the date of the acquisition.

 

The Casa do Adubo acquisition was completed at the close of business on October 1, 2022, therefore, our consolidated statements of earnings did not include any impacts from Casa do Adubo for the three and nine months ended September 30, 2022. Financial information related to Casa do Adubo is as follows:

 
                   
 

 

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  2022 Pro Forma 1  

 
 

Sales

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  440  

 
 

EBITDA

 
 

 

 
 

 

 
 

 

 
 

 

 
 

  40  

 
 

1 Estimated annual sales and EBITDA if acquisition occurred at January 1, 2022. Net earnings before income taxes is not available.

 
 

 

 

  

  

  Investor Relations:  
Jeff Holzman
Vice President, Investor Relations
(306) 933-8545
Investors@nutrien.com  

Media Relations:  
Megan Fielding
Vice President, Brand & Culture Communications
(403) 797-3015

Contact us at: www.nutrien.com  

 

News Provided by Business Wire via QuoteMedia

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