Lower potash prices hurt Nutrien

Nutrien Corp. (TSX, NYSE: NTR)   is the world’s largest producer of agricultural fertilizers, including nitrogen and phosphates which it sells in bulk. At the retail level, farmers buy its products through a network of more than 2,000 stores. 

The shares are down 11.5% year-to-date at the current price of $66 as lower potash prices have weighed on the company. Shipments from Belarus and Russia have also resumed. These exports were significantly restricted last year following Western sanctions imposed on Russia in response to its invasion of Ukraine.

In November, Nutrien reported earnings of $0.35 per share for the three months ended Sept. 30. That compared with the average analyst estimate of $0.64. The company lowered its adjusted EPS guidance for the year to $4.15-$5, versus $3.85-$5.60 earlier in the year. Note the company reports in US dollars.

In a conference call, CEO Ken Seitz said he was encouraged by the positive developments during the second half of the year, particularly crop nutrient demand in North America and increased stability in global potash markets.

Nutrien raised its dividend by 10% in April to US$2.12 annually. It has increased its dividend in each of the last five years. It yields 4.3% at current prices.