Nutrien Raises Guidance: Announces a Further Half-Million Tonne Increase in 2021 Potash Production
22 June 2021 - 7:30AM
Business Wire
Nutrien Ltd (TSX and NYSE: NTR) announced today that it has
increased its first-half 2021 earnings guidance given the strength
in global fertilizer markets and strong operational results.
First-half 2021 adjusted net earnings per share (EPS) is expected
to be $2.30 to $2.50, up significantly from our previous guidance
of $2.00 to $2.20 (first quarter adjusted net earnings per share
was $0.29).
We will provide updated 2021 full year guidance at the time of
our second quarter results in early August. However, we expect the
midpoints of both our 2021 adjusted EBITDA and adjusted EPS
guidance to be above the top end of the ranges previously provided
at the time of our first quarter results.
In response to continued tightening in global potash market
conditions, we are flexing our low-cost network of six mines to
draw upon our available capacity in a timely manner and are
planning to produce a further half a million tonnes of potash,
which is in addition to the half a million tonne increase announced
on June 7, 2021. As a result, we now expect to produce one million
tonnes of incremental potash in 2021 compared to expectations
earlier this year. The majority of the increased production is
expected to occur in the fourth quarter, with some of these
additional tonnes expected to be sold in early 2022. Our updated
guidance for potash sales volumes in 2021 is 13.3 to 13.8 million
tonnes, which would exceed our previous record high for annual
sales volumes of 13 million tonnes set in 2018.
“The quality and breadth of our integrated network combined with
unparalleled expertise in potash mining and an exceptional
transportation and logistics system helps ensure our customers have
the crop inputs they need to feed a growing world and drives
tremendous shareholder value. With continued strength in global
agriculture and crop input markets, we are raising guidance and
expanding our potash production by a total of one million tonnes to
ensure farmers get the potash they need,” commented Mayo Schmidt,
Nutrien’s President and CEO.
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
around 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.
Forward-Looking Statements
Certain statements included in this news release constitute
“forward-looking statements” under applicable securities laws,
including without limitation, those referring to Nutrien’s 2021
annual and first-half guidance including our expectations regarding
our adjusted net earnings per share and adjusted EBITDA guidance
and our expectations regarding potash market conditions and
production. These statements are based on certain expectations and
assumptions made by Nutrien (all as more fully described in our
quarterly and annual filings) and including expected business,
regulatory and industry conditions, demand, supply, product
availability, supplier agreements, logistics, operations, and
availability and cost of labor. As actual results could vary
materially from the forward-looking statements, you should not put
undue reliance on them. The purpose of our adjusted net earnings
per share and adjusted EBITDA guidance is to assist readers in
understanding our expected and targeted financial results, and this
information may not be appropriate for other purposes.
Such statements are also subject to various risks and
uncertainties which could cause actual results and experience to
differ materially from the anticipated results or expectations
expressed in this news release which include, but are not limited
to: market and general economic conditions; the supply and demand
and price levels for our products; delays in production or mining
processes; sufficient, cost-effective and timely transportation and
storage of our product; and other risk factors detailed from time
to time in Nutrien reports filed with the Canadian securities
regulatory authorities and the United States Securities and
Exchange Commission.
The forward-looking statements in this news release are made as
of the date hereof and Nutrien disclaims any intention or
obligation to update or revise any forward-looking statements
resulting from new information or future events, except as may be
required under applicable securities laws.
Non-IFRS Financial Measures
This news release references certain non-IFRS measures,
including adjusted net earnings per share and adjusted EBITDA
guidance, which management believes provide transparent and useful
supplemental information to management and investors in evaluating
Nutrien's financial performance, financial condition and/or
liquidity. Such measures are not calculated or presented in
accordance with IFRS and, accordingly, should not be considered as
a substitute for, or superior to, financial measures prepared in
accordance with IFRS. Further, such non-IFRS measures may not be
comparable to similar measures presented by other companies. Refer
to the disclosure under the heading “Appendix B – Non-IFRS
Financial Measures” included in news release dated May 3, 2021
announcing our first quarter results, as filed on SEDAR at
www.sedar.com and EDGAR at www.sec.gov under our corporate profile,
for a discussion of how such non-IFRS measures are calculated,
their purpose and usefulness to users, including management.
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version on businesswire.com: https://www.businesswire.com/news/home/20210621005779/en/
Investor Relations Richard Downey Vice President,
Investor Relations (403) 225-7357 Tim Mizuno Director, Investor
Relations (306) 933-8548 Media Relations Megan Fielding Vice
President, Brand & Culture Communications (403) 797-3015
Contact us at: www.nutrien.com
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