Nutrien Reports US$165 Million in Q1 Net Earnings, Highlights Strong Demand

Major fertilizer producer Nutrien (TSX:NTR,NYSE:NTR) shared its first quarter results on May 8, reporting net earnings of US$165 million for the period, down 71 percent year-on-year.

Adjusted EBITDA came in at US$1.1 billion, a 26 percent year-on-year decline, while Nutrien recorded adjusted net earnings per share of US$0.46, a fall of 50 percent over the same timeframe.

The company said the decreases came on the back of lower net fertilizer selling prices, but pointed to strong demand for crop inputs. It is seeing strong potash demand in North America, as well as Southeast Asia, where lower inventory levels are supporting buying. Nutrien also pointed to strong Q1 potash imports from China.

Nutrien's four operating segments are Nutrien Ag Solutions, potash, nitrogen and phosphate. The company highlighted Ag Solutions' adjusted first quarter EBITDA of US$77 million, saying it was propelled by higher gross margins for crop nutrients and crop protection products, which make up a surging market in the North American region.

The potash segment's adjusted EBITDA declined slightly to US$530 million in Q1. However, Nutrien was able to increase potash production and reduce controllable cash costs per metric ton through advancements in mine automation.

Meanwhile, adjusted EBITDA for the nitrogen segment sank to US$464 million. The company said selling prices for all major nitrogen products were lower during the first quarter, offsetting higher sales volumes and lower natural gas prices.

President and CEO Ken Seitz underscored the company's ability to meet customer needs amid shifting market conditions, commenting, “Our results highlighted the capabilities of our flexible, low-cost production assets and downstream distribution network to efficiently supply our customers’ needs.”

He added, “We expect growth in retail earnings and fertilizer sales volumes compared to the prior year and have maintained our 2024 guidance ranges. Our focus remains on strengthening our capability to serve growers and enhancing our core businesses to improve the quality of our earnings and free cash flow."

In the release, Nutrien also reaffirmed its commitment to prioritizing the safety and wellbeing of its employees following an incident at its Saskatchewan mine last March during which a worker sustained injuries.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.