Nutrien Announces Second Quarter 2022 Results Release and Conference Call Dates
“The challenge of feeding a growing world has never been clearer, as global supply constraints have contributed to rising commodity prices and escalating concerns about global food security. There is no easy or quick fix to overcome this challenge and we see potential for multi-year strength in the fundamentals of agriculture and the agri-input market,” said Ken Seitz, Interim President and CEO. by Nutrien.
“Nutrien’s integrated business is uniquely positioned to meet these supply challenges and help sustainably feed a growing world. We are safely bringing additional, low-cost potash and nitrogen production from our existing facilities, while providing the products, services and solutions growers need through our premier global retail network,” Mr. Seitz added.
Acceleration of the ramp-up of potash production
Nutrien is accelerating the ramp-up of its annual potash production capacity to 18 million tonnes by 2025 in response to supply uncertainty from Eastern Europe. This represents an increase of more than 5 million tonnes, or 40%, over our production in 2020. The path to acceleration is through existing low-cost capacity that is unmatched in the industry and supported by logistics infrastructure world-class world. The additional production capacity is expected to be added at a similar annual rate to additions over the past two years.
To increase production, the company will hire and train approximately 350 people and invest in underground mining equipment, mine development, storage and loading capacity. Nutrien continues to evaluate other low-cost brownfield expansion opportunities beyond 18 million tonnes at its Saskatchewan mines that would provide longer-term market demand growth.
Improve Nitrogen Portfolio
Nutrien is advancing previously announced brownfield expansion projects that are expected to add approximately 500,000 tonnes of capacity by the end of 2025 and further improve the energy efficiency and product mix of our plants. We are also evaluating the potential for further low-cost brownfield expansion and emissions reduction projects with a final investment decision expected within the next 12 months.
Last month, Nutrien announced it was evaluating its existing site in Geismar, Louisiana, to build the world’s largest clean ammonia facility. The project would take advantage of low-cost natural gas, maritime access to global markets, and high-quality carbon capture and sequestration infrastructure to meet growing demand from emerging agricultural, industrial, and energy markets. The plant would have an annual production capacity of 1.2 million tonnes of clean ammonia and capture at least 90% of carbon dioxide (CO 2 ), which is a significant step towards achieving the 2030 commitments set out in Nutrien’s Feeding the Future plan.
Nutrien’s annual nitrogen sales volumes could increase to approximately 13.5 million tonnes by 2027 through the completion of in-flight brownfield projects and additional growth projects currently being evaluated.
Return of capital to shareholders
Nutrien plans to repurchase an additional $2 billion of stock, for a total of approximately $4 billion in repurchases in 2022, under its normal course issuer bid. This is expected to increase the company’s total return on capital to shareholders through dividends and share buybacks to approximately $5 billion in 2022.
“The strength of our expected cash flows provides us with the opportunity to accelerate our strategic growth initiatives and return significant cash to shareholders. The additional planned share buybacks announced today reflect our confidence in Nutrien’s near-term earnings and the potential for stronger long-term growth. outlook,” said Pedro Farah, executive vice president and chief financial officer of Nutrien.
Presentation materials from the Investor Day and a webcast of the formal presentations will be available on Nutrien’s website live or in replay mode at www.nutrien.com.
Certain statements contained in this press release constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) under applicable securities laws, including economic, market and planned global industry; potash production capacity expansion plans (and timing thereof), investments and employment of employees; our expectations regarding brownfield expansion projects and a clean ammonia production facility (and their timing), production capacity and capacity, carbon capture and sequestration and nitrogen sales volumes; and our expectations regarding future brownfield expansion opportunities and growth projects; expectations regarding our emissions reduction strategy and our 2030 commitments; and expectations regarding dividends and redemptions of our common stock, including the timing thereof. The forward-looking statements contained in this press release are based on certain expectations and key assumptions made by Nutrien, many of which are beyond our control, including, but not limited to: that future business, regulatory and industry conditions and global economic conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, availability and cost of labor and technology; 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; the adequacy of our cash generated from operations and our ability to access our credit facilities or the capital markets for additional sources of funding; and our ability to repurchase the anticipated number of common shares in accordance with applicable laws and stock exchange rules. Although Nutrien believes that the expectations and assumptions on which these forward-looking statements are based are reasonable, undue reliance should not be placed on forward-looking statements as Nutrien cannot guarantee that they will prove to be accurate. Forward-looking statements are subject to various risks and uncertainties that could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this press release, including, but not limited to: the conditions general world economy, market, industry and business; regulatory requirements; our ability to attract and retain qualified employees; access and availability of technology; our ability to return additional capital to shareholders; 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; and the performance of third parties. For additional information about the assumptions made and the risks and uncertainties that could cause actual results to differ from expected results, please see our reports filed with Canadian securities regulators and the U.S. Securities and Exchange Commission. United.
The forward-looking statements contained in this press release are made as of the date hereof, and Nutrien disclaims any intention or obligation to update or revise the forward-looking statements contained in this press release, except as required by applicable law.
Nutrien is the world’s largest supplier of agricultural inputs and services, playing a vital role in helping producers increase their food production in a sustainable way. We produce and distribute approximately 27 million tonnes of potash, nitrogen and phosphate products worldwide. With this capability and our primary agricultural retail network, we are well positioned to meet the needs of our customers. We operate with a long-term vision and are committed to working with our stakeholders to meet our economic, environmental and social priorities. The breadth and diversity of our integrated portfolio provides a stable revenue base, multiple avenues for growth and the ability to return capital to shareholders.
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Contact us at: www.nutrien.com