Nutrien Ltd., Saskatoon, on June 22 said in response to continued tightening in global potash market conditions, it plans to produce another 500,000 mt of potash, which is in addition to the 500,000 mt increase announced on June 7, 2021 (GM June 11, p. 1).
As a result, it now expects to produce 1 million mt of incremental potash in 2021 compared to expectations earlier this year. The majority of the increased production is expected to occur in the fourth quarter, with some of these additional mt expected to be sold in early 2022.
The Nutrien increases soon followed The Mosaic Co.’s announcement that it would be cutting production by 1 million mt through March 2021 due to the earlier-than-expected idling of the K1 and K2 shafts at Esterhazy (GM June 4, p. 1). News of the latest 500,000 mt increase came as the European Union was advancing sanctions on Belarusian potash (see related story).
Nutrien said the updated guidance for potash sales volumes in 2021 is 13.3-13.8 million mt, which would exceed the company’s previous record-high for annual sales volumes of 13 million mt set in 2018.
In addition, Nutrien increased its first-half 2021 earnings per share (EPS) guidance given the strength in global fertilizer markets and strong operational results. First-half 2021 adjusted net EPS is expected to be $2.30-$2.50, up from the previous guidance of $2.00-$2.20.
“The quality and breadth of our integrated network, combined with unparalleled expertise in potash mining and an exceptional transportation and logistics system, helps ensure our customers have the crop inputs they need to feed a growing world and drives tremendous shareholder value,” said Nutrien President and CEO Mayo Schmidt.
“With continued strength in global agriculture and crop input markets, we are raising guidance and expanding our potash production by a total of 1 million mt to ensure farmers get the potash they need,” he added.