News, North America, Phosphate, Purified Acids

Potash & Fertilizer Company Results: Nutrien, Intrepid Potash and CVR Partners

North American agminerals leader Nutrien maintains it will post “solid” financial results for the first half of 2020 despite reporting a net loss of US$35 million for the March quarter. It has also cut its full-year earnings outlook and pared potash production guidance. Slowed global economic activity in the March quarter resulted in demand for crude oil and related corn-based ethanol products retreating, which contributed to softer-than-expected potash pricing. The Saskatchewan-based company reported an adjusted loss for the March quarter of US$69 million, or 12c per share. The net result compared with a $41 million net profit in the same period last year. Nutrien reported March quatrer adjusted EBITDA of $508 million, compared with $704 million a year earlier, with free cash flow falling by more than half t $181 million from $382 million a year ago. The company confirmed its quarterly dividend of 45c per share, saying the payout was in line with its target of returning 40-60% of annual free cash flow to shareholders. Potash shipments had been lower than expected to date, prompting Nutrien to pare back its full-year global potash shipment forecast outlook by about one million tonnes to 65-67Mt.
Also Intrepid Potash has released its 1Q20 results that shows that its cash flow from operations stood at US$14.8 million, with its net loss of US$7.4 million, or US$0.06 per share, being driven by a one-time litigation settlement with Mosaic. “We have taken significant steps to assist our employees and communities as we work through the impacts of the COVID-19 pandemic.” said Bob Jornayvaz, Intrepid’s Executive Chairman, President, and CEO. “Good weather across our key regions resulted in robust potash and Trio® sales volumes and we saw strong demand in higher-priced international Trio® markets and from our water customers during the quarter. This led to better than expected cash from operations during the quarter as we continue to adjust to the uncertainties of the Covid-19 pandemic. In response to the Covid-19 pandemic we reduced our 2020 capital investment guidance to US$15-US$20 million to conserve cash and we continue to focus on cost reductions across the organisation,“ Jornayvaz also said and added that „Looking ahead, we expect our diversified revenue streams will help us manage through this ever-changing time and we remain confident in the long-term potential of our company.”
CVR Partners has also reported its 1Q20 results, announcing a net loss of US$21 million, or 18 cents per common unit, on net sales of US$75 million, compared to a net loss of US$6 million, or 5 cents per common unit, on net sales of US$92 million for 1Q19. EBITDA was US$11 million for 1Q20, compared to US$26 million for 1Q19. “CVR Partners has successfully maintained safe and reliable operations while delivering nitrogen fertilizer on a timely basis to our customers despite the Covid-19 outbreak,” said Mark Pytosh, CEO of CVR Partners’ general partner. For 1Q20, CVR Partners’ average realised gate prices for urea ammonium nitrate (UAN) showed a reduction over the prior year, down 25% to US$166/t, and ammonia was down 28% over the prior year to US$264/t. CVR Partners’ fertilizer facilities produced a combined 201 000 t of ammonia during 1Q20, of which 78 000 net t were available for sale while the rest was upgraded to other fertilizer products, including 317 000 t of UAN.

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