“Nutrien delivered earnings growth in the first half of 2019 despite unprecedented wet conditions in the US, demonstrating the strength of our business model and asset mix. Nutrien remains focused on factors under its control and creating long-term value for stakeholders. We expect to achieve over US$650 million in annual run rate synergies by the end of 2019, have made strategic investments to grow our Retail business and returned US$5.2 billion to shareholders through share repurchases and dividends over the past 18 months,” commented Chuck Magro, Nutrien’s President and CEO.
“US weather in the first half was so severe it nearly eliminated global demand growth for crop inputs. However, demand for grains and oilseeds is still growing, and with lower crop inventories and higher prices, we expect a strong rebound in 2020,” added Magro.
- Potash EBITDA was up 42% in the first half of 2019, compared to the same period last year, as a result of higher realised selling prices and strong sales volumes.
- Retail EBITDA in the first half of 2019 was 8% lower compared to the same period in 2018 as adverse weather and flooding in the US led to delayed planting and record high unplanted acres.
- Nitrogen EBITDA in the first half of 2019 was 17% higher than the same period in 2018 as higher realised selling prices more than offset lower sales volumes.
- Nutrien generated US$1.7 billion in free cash flow in 1H19, up 47% from the same period in 2018.
- Nutrien announced a 5% increase in the expected quarterly dividend payout to US$0.45 per share commencing with the quarterly dividend having a record date at the end of 3Q19.
- Nutrien executed on its most recent Normal Course Issuer Bid programme, purchasing the maximum authorised shares in less than four months. In 1H19, Nutrien repurchased over 36 million shares representing nearly 6% of shares outstanding. Over the past 18 months Nutrien has allocated US$3.7 billion to repurchase over 11% of shares outstanding.
- Nutrien full-year 2019 adjusted net earnings per share and adjusted EBITDA guidance is lowered to US$2.70 to US$3.00 per share and US$4.35 billion to US$4.70 billion, respectively.
For the full results, click here.
Read the article online at: https://www.worldfertilizer.com/nitrogen/30072019/nutrien-releases-2q19-results/