CF Industries Holdings Inc. reported second-quarter net income attributable to common shareholders of $47 million ($0.20 per diluted share) on net sales of $1.13 billion, down from the year-ago $352 million ($1.49 per share) and $1.31 billion, respectively.
Included in the results is the $150 million payment CF made to OCI NV in connection with the termination of the combination agreement between CF and OCI announced in May.
CF says the demand outlook for 2017 is positive though new capacity will pressure global pricing. As a result, it expects a challenging price environment though 2017, which will pressure high-cost producers. However, the company says a lack of meaningful new production after the middle of 2017, coupled with capacity closures, is expected to lead to price recovery in 2018 and beyond. CF said in both the near and long-term, North American producers should remain at the very low end of the cost curve due to plentiful supply of North American natural gas.