Nutrien reports US$1.68B in adjusted earnings

The world’s largest fertilizer company says it earned US$3.6 billion on sales totalling US$19.6 billion in its first full year of operations, and is projecting even greater profits next year.

Adjusted to exclude a range of non-operational costs, including impairment charges, Nutrien Ltd. earned US$1.68 billion last year, or US$2.69 per share, the company said.

In a news release issued after markets closed on Wednesday, the company said it expects to earn between US$2.80 and US$3.20 per share in 2019, due in part to growing demand for potash.

Formed on Jan. 1, 2018, in the merger between Potash Corp. of Saskatchewan Inc. and Agrium Inc., Nutrien owns and operates six of the 10 potash mines in Saskatchewan.

By comparison, Potashcorp and Agrium reported combined net earnings of US$327 million in 2017.

In a statement, CEO, Chuck Magro, said Nutrien also exceeded its merger savings targets and raked in US$5.3 billion from selling various equity investments.

“Nutrien delivered excellent operational and strategic results in 2018, and we see further opportunities for significant earnings growth and business improvement in 2019,” Magro said.

At the time of the merger, the company projected $500 million in annual savings. On Wednesday, it said that figure reached US$521 million in 2018, and is expected to hit US$600 million next year.

The firm said this week it estimates that global potash shipments from all miners totalled 66.5 million tonnes last year, a new record that it forecasts will be broken this year.

Nutrien came under scrutiny from the Saskatchewan government last year after the Saskatoon Starphoenix reported that all but one of its senior executives lived outside the province. While that is an apparent violation of provincial legislation requiring Potashcorp and its successors to maintain head office operations in Saskatchewan, the bill is thought to be difficult to enforce.

Discussions between the two parties are understood to be ongoing.