Fertilizer giant Nutrien sticking to plan to boost production; potash sales slump

Nov 03, 2022

Nutrien Ltd. is sticking to its plan to increase potash production, even as the Saskatoon-based fertilizer giant cut its full-year guidance for 2022 due to slumping potash sales volumes in the second half of this year.

The company — which is the largest fertilizer producer in the world — saw its share price tumble Thursday after releasing its third-quarter financial results after the close of markets on Wednesday.

By mid-day Thursday, Nutrien's shares were down more than 13 per cent to $98.65 on the Toronto Stock Exchange. Investors appeared to be spooked by the company's announcement that it is lowering its full-year adjusted earnings forecast from the previously stated range of US$14 billion to US$15.5 billion, to a new range of US$12.2 billion to US$13.2 billion.

Nutrien also lowered its full-year guidance for 2022 potash sales to 12.5 to 12.9 billion tonnes, down from a previously announced range of 14.3 to 14.9 billion.

The poorer forecast came in spite of Nutrien's reported third-quarter adjusted earnings per share of US$2.5 billion, or US$2.51 per share, an 82 per cent increase from the the prior year's quarter.

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