REUTERS — Nutrien fell short of analysts’ estimates for third-quarter profit, as lower potash prices weighed on the world’s biggest fertilizer producer.
Potash prices have been falling after shipments from Belarus and Russia resumed. These exports had been significantly restricted last year following Western sanctions imposed on Russia in response to its invasion of Ukraine.
Demand for fertilizers was also weak during much of the year, analysts have said, as farmers waited for prices to settle down.
Potash prices averaged US$250 per tonne during the reported quarter, the company said, compared with $633 per tonne a year earlier.
Read Also
Going beyond “Resistant” on crop seed labels
Variety resistance is getting more specific on crop disease pathogens, but that information must be conveyed in a way that actually helps producers make rotation decisions.
Nutrien said potash sales volumes, however, climbed 23 percent on strong sales in North America.
Fertilizer inventories in the United States had been running low, which should result in relatively robust demand, B of A Global Research analyst Steve Byrne had said ahead of the earnings.
On an adjusted basis, Nutrien reported earnings of 35 cents per share for the three months ended Sept. 30, compared with the average analyst estimate of 64 cents, according to LSEG data.
Nutrien, the top U.S. agricultural retailer, also narrowed its adjusted earnings forecast for 2023 to a range of $4.15 to $5 per share, compared with a range of $3.85 and $5.60 earlier.
The company forecast fourth-quarter fertilizer demand would be up five percent to 10 percent year-on-year.
Nutrien added it was lowering its nitrogen sales volume forecast because of the unplanned outages in the third quarter and pull-forward of a planned maintenance outage at its Borger site in the current quarter.
