All Posts from February 20, 2018

Nutrien Announces Dividend, Buyback

Nutrien Ltd., Saskatoon, said Feb. 20 that its board of directors has declared a quarterly dividend of US$0.40 per common share payable on April 20, 2018 to shareholders of record on March 29, 2018. The dividend represents a 27 percent increase from its legacy companies combined payout level. Nutrien says it will target a stable and growing dividend that represents 40 to 60 percent of free cash flow after sustaining capital through the cycle. 

Nutrien’s board also approved the purchase of up to five percent of Nutrien’s outstanding common shares over a one-year period through a normal course issuer bid (NCIB).

“Today’s announcement reflects the confidence in our business to generate strong and growing free cash flow,” said Nutrien President and CEO Chuck Magro. “Nutrien is the leading global crop input company, with significant leverage to a recovery in agricultural markets and earnings stability from our integrated platform. We are committed to returning cash to shareholders, while maintaining the financial strength to deliver on growth opportunities that provide superior long-term returns.”

Mosaic Releases 4Q, Full-Year Results

The Mosaic Co. reported a fourth-quarter 2017 net loss of $431 million, compared to net income of $12 million in the fourth quarter of 2016. Fourth quarter loss per share was $1.23, which included a negative impact of $1.57 per share from notable items, primarily related to non-cash charges as a result of changes in U.S. tax legislation. Adjusted earnings per share during the fourth quarter of 2017 were $0.341.

“After a strong fourth quarter, we entered 2018 with positive market momentum and expect this year will be a transformational year for Mosaic,” said Joc O’Rourke, Mosaic president and CEO. “The addition of Vale Fertilizantes, the construction completion of the Ma’aden phosphate project and progress on the Esterhazy K3 complex further enhance our position as a world class, global fertilizer company.”

Mosaic’s net sales in the fourth quarter of 2017 were $2.1 billion, compared to $1.9 billion last year, primarily driven by higher realized prices throughout the business. Operating earnings during the quarter were $127 million, up from $74 million a year ago, driven by higher gross margins in both Potash and Phosphates.

Mosaic reported a full-year net loss of $107 million, or $0.31 per share, compared to net earnings of $298 million, or $0.85 per share in 2016. Full-year adjusted earnings per share of $1.09 exclude the negative impact of a $1.40 of notable items, primarily related to non-cash charges as a result of the recently enacted U.S. tax reform. The $458 million non-cash charge is driven by the revaluation of our tax assets as of Dec. 31, 2017.

Full-year net sales were $7.4 billion, up from $7.2 billion a year ago. Full-year operating earnings were $466 million, up from $319 million last year, primarily driven by higher average realized sales prices and higher sales volumes in potash.