Fourth-quarter revenue beats expectations amid record potash sales
Nutrien Ltd., the world’s largest potash producer, reported fourth-quarter revenue that beat analyst expectations, and predicted 2022 would be another banner year for its two main businesses, fertilizer and farm retail.
The Saskatoon-based agricultural behemoth said on Feb. 17 that it quickly ramped up production and sold a record 13.6 million tonnes of potash in 2021 as demand reached record levels and prices soared amid supply constraints and uncertainty around the effect of sanctions imposed on Belarus, a major producer.
Meanwhile, retail sales of fertilizer and crop nutrients also surged as food security concerns grew. The company announced record adjusted EBITDA for the year of US$7.1 billion. It expects retail fertilizer margins to return to historical levels, a sign that it is expecting a return to normalcy in the supply chain and on food security issues.
Still, it said crop prices remain high, and therefore many farmers will continue to invest in fertilizer. The company said it is expecting record potash sales again, and strong markets for its other fertilizers, nitrogen and phosphates.