Agrium Inc. has released its 2Q17 results, with net earnings to Agrium equity holders of US$557 million (US$4.03 diluted earnings per share), compared to net earnings to equity holders of US$564 million (US$4.08 diluted earnings per share) in the 2Q16.
The slight reduction in net earnings was driven by weaker nitrogen and phosphate benchmark prices, which were partially offset by higher retail earnings, strong potash results and lower fixed costs across the cmompany’s wholesale business.
The highlights of the release are as follows:
- 2Q17 guidance relevant earnings were US$566 million or US$4.09 diluted earnings per share.
- Agrium’s retail business achieved a first half EBITDA record of US$821 million, which was supported by strong margins, with EBITDA to sales of 10.3 percent, compared to 9.8% last year and the highest since 2008.
- Wholesale grew its 2Q17 sales volumes and reduced costs across our operations to achieve EBITDA similar to last year, despite a 7% decline in North American nitrogen prices. Record 1H17 potash production achieved with successful post expansion ramp-up.
- Agrium’s new urea facility at Borger, Texas, USA, has been successfully commissioned and reached designed operating rates in 2Q17.
- The company has updated its 2017 annual guidance to a range of US$4.75 - US$5.25 diluted earnings per share.
"Agrium continued to deliver robust results in 2Q17 due to our integrated business model and focus on operational improvements and execution. Retail set a first half earnings record with the highest EBITDA to sales in almost a decade while Wholesale delivered strong operational results, which together allowed us to generate US$1.2 billion of EBITDA in 1H17," commented Chuck Magro, Agrium's President and CEO.
"We look forward to the completion of our merger with PotashCorp which is anticipated near the end of the third quarter of this year and continue to make significant progress on integration preparations," Magro added.
If you wish to read the full announcement, you can do so here.
Read the article online at: https://www.worldfertilizer.com/nitrogen/10082017/agrium-announces-2q17-results/