NTR - Earnings call transcript Q3 2021

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Operator

Good day, and thank you for standing by. Welcome to the Nutrien 2021 Q3 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jeff Holzman. Please go ahead.

Jeff Holzman

operator. you, Thank welcome and third conference quarter Good to call. morning, Nutrien's

Raef today On Executive President Potash; President is and Phosphate. call Nitrogen Vice Executive and of CEO; of Seitz, Schmidt, Ken Mayo the Vice CFO; Pedro President Sully, Farah,

Tarsi have David Elser. For Jeff retail, and we

and We have Sustainability; Executive our Head of Strategy Vice also Newton, President of Thompson, and Mark Jason Market Research.

and in material conference call, forecasts. results make information. these expectations, in plans we assumptions and various about Certain our information. applied that this prospects statements conduct Therefore, forward-looking we could making from As conclusions differ forward-looking were contain those future actual materially contained

Additional information your over annual to filed now before with as our shareholders, well call in about as Securities comments we turn take Canadian our the and information contained form U.S. annual these Commission. and and are most I'll Mayo quarterly MD&A to assumptions current opening report recent questions. for factors report,

Mayo Schmidt

call. welcome Good to and morning, quarter Nutrien's earnings third

highlight the execution, Our been this team's strengthening for food are Grain remarkable fundamentals. supply and XXXX most strong and priority. for remains significant leverage global and above and oilseed tight global exceptional top the year demand quarter well competitive a supported has advantages historic crops. by average market results our agriculture, security prices strong a

that sets and significant production the represents input of low-cost top other portion of potash has quartile in potash, across units. taken our will customers. apart advantages the tonnes constraints optionality capacity actions to model, crop the outages our supply-related our producer no move each meet business the have XXXX. needs In Nutrien that decisive million to we remain of production is up are markets quickly ramped X our today. and due by and available This What expect occurred a we of into integrated We tight as assets, this XXXX we our competitive that environment in

nitrogen and are and producers assets escalating strategically-located cost low regions. generating feedstock margins cost impact curtailments other production and Our higher in

our including Future projects that and will the enhance and targets to emissions in investments Plan. make our nitrogen to commitments reduction expanding our capacity the our Feeding strategically continue position, achievement GHG support of the We completing

of XXXX. employees effectively team this scale and our navigated by in products to extremely need, and our and Nutrien supply growth proud this strategic I'm performance world-class Our on of safety steadfast dedication global the to they share chain gains it. grow with have retail of and challenges number resulted they world. utilizing in integrity. a our of around how when values the market our These efforts remaining of market, and while team customers partnerships needed margin Key is supply our dynamic core in or focus the the supported customers has services impressive network

a margins proprietary quarter. nutritional record product Now delivered and rising which quarter, turning X.X Adjusted significant points, sales year. on the $X.X driven increased price to growth our compared fungicides with connection all Retail our strategic by an across third agriculture increased to quarter, in were EBITDA of and stronger environment and strong results. via third Sales increase EBITDA the the demand in close capitalize last our of this of achieved months increased our period margins free we we growth product flow agronomists, we by billion with billion by in billion inventory a for procurement results. share excellent major operate. supported gains and was by percentage able Adjusted the $X XX% the to same quarter in market EBITDA to crop, and to customers positioning exceeded nearly in adjusted X fundamentals $X.X billion and cash over driven by each X,XXX strategic $X.X generated Due geographies period. higher categories. earnings

ratio adjusted working to strategic XX% low all-time an supplier due to management. of sales remains at capital Our average

million We these have EBITDA. first of grown $XXX from XXXX, the for months X our retail of XX% accounting businesses outside in with over adjusted the up total U.S. regions retail EBITDA

expect We in years that and further retail are the both to providing earnings continue to global U.S. geographies through inorganic of our agriculture production. proportion and organic our the to over us next earnings with grow will initiatives, X outside exposure base diversity through critical growth stability

team in from transactions plans. last robust and and third growth supply a quarter we potash key adjusted have year. prices in Potash strong recent a in The increased is Brazil quite spot significantly markets. delivered execute targets have well EBITDA a Our all are and our pipeline tight of record with to performing team XXX% place up

sustaining shipments third potash significant We advantage temporary for during production to product. X-mine the in strong significantly sales record restrictions Nutrien rail response the service increase on production network, core fourth through Canadian able of annualized volumes demonstrate surge impacted lines. projects. in to critical were projects assets many are million completed grade run our were nitrogen higher and and network. up expect X% million our provided on extensive turnaround by port EBITDA enhance to thank third projects Nitrogen sales that Due in its quarter teams the prices These production X Nitrogen rate our quarter distribution supported multiple $XXX mines despite of selling weather-related to and the to in underscores competitive the benefit I low-cost years this pace we and the quarter, offshore Eastern of the to in sites potash by facilities nitrogen And Having will position its downtime generated is market safety, months. want facilities facilities the in reliability and in being to over XX leadership Redwater and mitigate cost and Canpotex come. plant increased Portland and in for efforts. our in an access part the all flexibility granular by at lower planned are higher phosphate maintenance to and X prices for combined quarter nearly over for business. premium We a our results demand their a past tonnes our large production XXXX. to for in adjusted B.C. in Borger the These efficiency across product

investment. from and expect started completed will XXXX. capacity XXXX that we nitrogen were addition, in These expanded generate fully In budget time, in on are very attractive this project completed our projects the we phase expect expansion first of and benefit on to that were on returns

the business. Now turning for to the outlook

slides well posted expectations our the and to help going prices to presentation historic frame and crop a and prepared remain Global our view few in XXXX. website oilseed have grower of margins levels is below into the grain inventory We market and strong.

where North expect crop. their We investing America, and positive sentiment operate. next and regions crop soils in In this key remains growers actively will in we input year's spending support are for preparing

season have start the favorable to regions. a harvest application fall We early and the due strong yields seen relatively to most in

in our network positioned We and expect the this needs. continue meet customer robust our demand retail fourth quarter, to is well permitting, weather to

million quarter to and market. soybean planted projected future markets return margins We a we a generate ensure XX-year crop more strength experienced corn ag Similar XX% and in more planting higher be corn start quarter The to commodity historically fundamentals shift as respond in we adequate all U.S. acreage to protection grow Australia expect intention with by making X in than in expect to XXXX And Growers ideal weather expect exceptional will to X next driven margins, good yields will expected prices. levels. in to in average above up fueling consecutive anticipate by maximize ag while acres. fertilizer margins XXXX. we second year anticipate fourth consumption million with for their Brazil and acreage respectively, to high retail to progress our on retail and The purchasing crops historic demand fundamentals and due margin fertilizer of Growers in planting fertilizer and while inputs, to are levels. agriculture are to crop acreage. rising XX%, before crop third Brazilian strong results, growers strategic approximately XX% we year, projected is spring, the soybean

markets, As is year. very to and supply it tight global fertilizer prices throughout the relates higher moved significantly

reduced in markets of factors market potential demand of limited we due believe to some strength. for period While availability, a there is to an contribute extended supply that is number there could

from production. nutrient, overall, been demand and but In increased these major below expect prices, most and and support to very delays was by in impacted agriculture energy record other of factors to levels we new product capacity additions project due unique limited estimate mine than markets commodity producers Nutrien meaningful of has supply limited potash, availability. flooding, limited most global inventory new inventories. low are and higher channel while average consumption each strong are Some availability We

have potential spot dollar-denominated and are other U.S. per above and buyers transactions chartering markets. Asia with in impacting Belarus, tenders potash Additionally, U.S. in granular of recent transacting tonne. impacts up awarded $XXX per dealing sanctions key at prices vessel and Brazilian European tonne trade all moved the which is Southeast import markets on in Prices $XXX with

will contract conditions. progress new reflect China and during contracts negotiations will expect with fourth market quarter, India the and We the prevailing

by MMBtu European shut around impacted in meet combination $X,XXX gas The halt government of the tonne. and This being of nitrogen to soaring fertilizer the XXXX. in We and to producers energy ammonia are this for prices at until equipped ordering $XX Europe of outages, at trading prepared approximately to June production of been Asia, import. European have has has increased been and need prices ammonia market XX% least the equating Chinese plant production demand. has per down cost resulted exports

nitrogen nitrogen next plan expected is tight over of there million half and online recently markets limited our that We very through period. the increase benefit higher rates will our the We year come production new by nitrogen of and tonnes completed projects. expect to through to first XXXX, X.X remain operating approximately expansion supply

of for on of remainder We are the nitrogen booked. our potash now the phosphate committed and and fully majority are year the volumes volumes

significantly costs while to return billion months. reducing our plan billion year. capital The in by We X-month increase billion network advance pipeline XXXX of market. future a so on tuck-ins growth debt million in project over to by next deliver realizations months We normal X.X range Brazil. X will balance accretive allocation the growing per and of sheet shareholders retail free year cash to to us to midpoint, long-term priorities. lag represents and the strengthen flexibility opportunities approximately shares XXXX, beginning by good over to have approximately XXXX. far since reducing the providing adjusted our of X opportunity acquisitions, the a We benchmark which the XXXX in is remain $X.X strong very provide building to repurchased and through $XXX in out and to XXXX increase and past $X.X shareholders, few Brazil We've the flow in will prices this the earnings a opportunities our in returned expect million full start $X a announced for in at finance We $X.X through our dividends in $XX increase price our business share focused anticipate transactions We XXXX. million third EBITDA quarter of and buybacks. capital our in our and for billion position in on X This the

brownfield The add production the the estimated X.X energy most expansion of some started is on million of at million, the first investment. by and are million plants. on of completing total to have tonnes from XXXX capacity our years in projects to phase deliver we target a run providing that rate of Brazil tonnes cost, a achieve efficient for After next expansions, $XXX successful EBITDA few returns $XXX second nitrogen of phase attractive in over We the lowest our efficiency investment of expected track improve and are industry.

are equivalent end the that to of emissions We tonnes previously by reduce by announced on projects approximately million continue to expected X COX XXXX. decarbonization progress

maintain Additional our be allocated cash beyond opportunities complete approach. free on per these capital a flow basis, we will identified disciplined will and

value to Our taking actions our our focused positioned leadership team for superior to we're are Board, stakeholders. long-term on ensure deliver decisive

your allocation projects goals, We an track our plans on And is at long-term update you. in our our June to and our well team compared strategic standing of with we'll to capital priorities Thank continue XXXX. that, investor meeting and forward to targets, questions. the provide by and Nutrien look very and next

Operator

from comes line question of Stanley. the Your Instructions] Morgan Vincent [Operator first Andrews of

Vincent Andrews

can in wondering quarter. XX what million-tonne about about rate And Mayo, in you potash the And I production your you you the for rate something it can’t talk quickly talk if XXXX? is time, mentioned but all maybe run if you are a expectations was just in in in run can that potash particular, could just of way fourth -- that’s be or sort just year. the of whether short through doing next keep sustainable achieved that period just

you to if want more more complex next a So year, for add decision. a capacity little of it’s

So maybe help take dynamics you how us could understand just those shape.

Mayo Schmidt

by on understood we there led to And address with other flexibility in that question. a over million and able And identify think Friday XX that years. come tonnes about been XXX,XXX about also labor to million loss -- for I One in address another his has been we’ve do then affected cetera, automation that that that to, that run And study is another talk very mines. our that the what necessary sustainable, the frankly, really only XX to we Sure. up was potash tonnes. like to weekend, demand, remember that. reaction able tonnes period ability a to very Ken? good but No, to we mines was production we’d a rate have due that sustain and standby had. mechanical Ken is the analysis about little happy tonnes the take of a turnarounds, maintenance that able et in our undertaking ability to toward you’ll and of very that’s that be continue by and I’d by second But was to and we Seitz and think production quick another that X we just and the the talking team a is, of machinery, address of We have do that is the Ken and not be look is night, our when XX number bit we to it would feel only opportunities. ask XXX,XXX hours, what

A –KenSeitz

for Thanks, the Mayo. Vincent, Yes. And yes, question. thanks,

of in suggesting run at have we’d So and just X face XX labor clarify, tonnes. the over for increase doing with or tonnes the is looking the labor that is something in But able big ramped what sustain the don’t a that machines machines an and be to sitting rate with run production. that million mining we’re annualized extra quarter for in XXXX we have We course mining not that up done fourth million-tonne rate. XXXX, to million XX

in year, we point for XXXX, that we’re a a into stable XXXX tonnes by a And do this other to ramp demand. we’ll X expecting similar So we thing from up year’s perhaps over global great head thing That’s words, preserve -- and the market. rate. million that production production of another sales in XXXX. view, we’ll a In to production around again, expect we’ll million we and XX sort capacity as that this produce of tonnes, did

strong preserving demand rate for fourth But million we’re that to So quarter next clarify, the that just only. tonne capacity, global run year. XX is

Operator

Christopher comes line of question from next Your Parkinson of the Mizuho.

Christopher Parkinson

Great.

first China, how at what's on trade just as in you for to on for as if situations will the Europe of intermediate of say, China tonnage, and the export then quickly just just I'd up dynamics given evolve sets your XXXX? And all? half it any the the long-term well opinion also to believe best ability, you as comment your broader can So nitrogen both,

Mayo Schmidt

want that you do question, to please? Raef, take

Raef Sully

Yes. Thanks.

was and trade Europe. at the mature continue nitrogen in to start tight energy of by It be exacerbated is look, will So year, so. was tight this and spike prices

Now is that to In something in to grow. the XX prices in energy come months. I happening, the back them U.S., $X our think been $X.XX; so, Europe, normal Even continuing are while the range that. to for to demand -- outlook around that's more be $X in for X next or would levels

some at continuing which traded. at million for to years, year, million demand last Just is X there's perspective million to this, put market. XX was pace. that That X That the XX the and about supplied tonnes to has XXX every grow continuing. additional of be to about been X.X% X% to is demand means the million required ammonia is of growing annum per tonnes, global market market on by That

And so that you'll Europe there on, but coming been next are despite fact years, the do projects those see for offset high the the prices, growth energy of look some curtailments not X some because you demand. in year forward if the in projects that there's this

we some I'm it and beyond. see Jason, like So expect now to nitrogen additional market in that. next we'd year going through to tight to pass good got who's color,

Jason Newton

the result back Okay. prices. situation this urea to meantime, touch taken production led on, prices. in Thanks, ammonia it's short in with to question, and the obviously Egyptian try to global that But into term, that's bid be strength higher project Europe. into prices to production imports more Europe. flow seeing positive Europe, market And to expect shutdowns we're we're why imports will Raef. is it the by market term, of The nitrate the be losing you Yes, into urea that in need that and dynamic need place, the to that's will interesting by will respect come supportive in the flowing point. been just at have ammonia for Longer trade on

weighting X.X we've the that million they the we which exports exported and million year, balance million and will third place, to tonnes. exports in likely restrictions of somewhere X been and just from half down demand a the in from of see in XXXX, X.X to expect million be the the year, seen know we In given of in that restrictions. terms more and about X China to first range export the to going be quarter X.X see we forward. case supply next export year, of need tonnes, when Historically, of in Chinese put China million-tonne have the exports we exports, this XXXX between And

after supply, the will So supply/demand balance without And tightens XXXX know area relatively market the tight. globally. of that be we

Operator

comes question Your Markets. of Joel next from line Capital BMO the of Jackson

Joel Jackson

the you come I’ll commentary gave. to production potash back

understand said, about expect has suggested you about tonnes And for about grow next and demand that million potash this you That’s X.X%. So XX what X your partner next tonnes Canpotex if produced That’s you I year. maybe million tonnes. potash more of million XX obviously. year, tonnes million produce year to X might

next I if year this base? have something in all other that have more? do forecast Or off competitors I’m would the X.X%? incremental a growth Or what you’re if to demand true, else more, You got Mosaic So higher know is in are understand all that you potash? is demand implying saying get it you and expect you of

Ken Seitz

Joel. for the it’s Ken Thanks question. Yes, here,

the the serve yes, that into So capability. XXXX. we of think, that the inventory supply-related really just we at issues know to demand, in clarify, low have all market. we’re quite course, heading markets moment. we that preserving is And these in of we global are Again, have production We stable

this do to that we to mines we have we low-cost that and So what potentially to capability in do X network XXXX XXXX. did and in preserve the say just of it’s want

India contract not as it’s just if -- for and depleting among watching and next, come this China formulating mines. a that the way, capability XXXX early situation network to plans. inventories and again, preserving year, there, later formulating X it’s But low-cost our plans we’re again, likely just so our of our now And we’re our

Operator

next comes line the Scotia Your Isaacson of question from of Ben Bank.

Ben Isaacson

but is but question new. question. in prices, of worldwide for we eventually another -- bit Ken will evidence seen and perhaps we really India, nothing we seen haven't prices soften. and a demand and high while potash, groan potash a Jason moan In yet, apologize destruction Perhaps of about weakness any farmers we know haven't destruction, which I it's demand Recurring

possible also So see And today $XXX from in you from that various you terms for next are lower see demand. what context, in do growth expect year? if through with now? can mentioned in in your was Is stable walk the of to Ken, Would expectations to 'XX? it you pricing, potash year year in satisfied prices a be X Brazil you key markets? regions

Jason Newton

demand XX the markets, to grower I at positive. Slides higher of the expectations, is grower economics. seeing couple the and Ben, where And and in it, the level. resistance you've a like direction just seeing to we still slides comment think the on and definitely to some at especially if economics do XX U.S. we in on look of But we're really at have deck, prices in hinted terms the of underlying and growers Brazil, market-driven point

In fact, this strong. at significantly higher than they time were a pretty were year they when ago

So for spring, to we've advance see, season and market to the in through the growing to remain strong expect in crop global seen of wouldn't in supply balance any strong, it and we'd demand. acreage order we markets. those prices attract spot destruction crop sufficient demand And

India India constrained to demand supply Africa Sub-Saharan go imports those inventories expect are contract means will already into a start I some because of major at lead where relatively in that tailwind demand. or rationing. XXXX tight, some we year-to-date great economies more constraints we is is there's is a same think example that supply. present and where down rationing are subsistence to nonmarket in think where farming, time, we looking the the that we've where that's to But as at what that markets. seen the And the And

Operator

Your from of America. Bank of Stephen of line the Byrne next question comes

Stephen Byrne

Yes.

your have in as When less How half pricing, forward more the you at that would than maybe price historically? your was importantly, in forward the say many they importantly, mine booked? been forward was or the more ‘XX, back? sales essentially potash and first quarter. would are quarter in sales of months XXXs in fourth gate realized net more you’re So low look you And

Ken Seitz

course it’s that yes, major you’re in of posted Thank markets Stephen, benchmark given potash respect you the Yes. prices, in to the seeing really all for the lag prices versus prices are Ken. rapid to question. several be that lag months the could With that of X to the volumes run-up in realized sort is expected. being which last of contracted lifted and is when from the mines, X to it over prior recognize months be them we revenue. And our

is all So that here, the and time quarter certainly we But that lag recognition. committed. we revenue to familiar head into experience fully something I the our you, we realized versus as price tell can are fourth

of All QX, to are I committed And we that placing benchmark prices. our volumes QX. customers. into now volumes are posted our of head volumes you can placing we sort those as we’re at And tell into

And And to catch are that stable, so market. extent will gap the that lag the and that prices to up close. see you’ll

So QX commit volumes at to prices. posted starting

Operator

of of comes line question Research. Cleveland the Piken Michael next Your from

Michael Piken

retail. on question A

the tight that there just the U.S.? be that you acres also any might or Brazil think to the in and you mentioned or for talk markups If impact glufosinate -- you growth of are of most in next chemistry not fertilizer terms that of could from you’re talk do protection continue going side, just that in prices benefiting be -- like retail are But organically? notably And products planted either volume it if you year. might for may number crop can that glyphosate some the your in expectations then that on

Mayo Schmidt

you and up David Elser then Tarsi the Jeff, got and Jeff follow comment first on would please. if with David, phone. We’ve

A –Jeff Tarsi

Thanks, Yes. Michael.

some those a mentioned to our But his a to NP&K tonne to with something the -- on fertilizers make Mayo expect out actually relates point our our also I’d nature basis up to that margins fact we look you ‘XX I in outstanding forward. the going how early We which an weren’t think at that. challenges of forward, of March throughout the alerted that and might you them products When crops of margin actually things. kind relate we of those dealt specific, look to supports going look, and here, Michael, ‘XX. especially on our such, with until year. the today, when proprietary at we side about if are what can return and year in and we challenges kind to products comments expect of finish that. headstart after David in commodity X-month more see to on had ‘XX margin we’ve you fertilizer, but would at And advantage as might that And about retail know like XX% is got proprietary nutritional be it have this look with I in we nutritionals, on a growth per of comment ‘XX. And we historical where we product

agronomists And have you we a growers. very our know, close so as our relationship between and

chemistries those to us inventory from think some With for to specifically you standpoint. speak close them, detail to of in building started let those we’re -- solutions we -- actually some out we ‘XX. David, paying that we’re that, an the sitting attention months we We’re it be. process with an we solutions I’ll those we’re already that build I we’ve to for creates X started issues when anticipate ago; opportunity circumvent sitting down our what our And of growers.

A –David Elser

the in position to be for a we to put supply weathered from -- ready quite in be ready nearly all of partnerships ‘XX well storm we in Yes, nailed strategic industry XXXX. good our really scale and Solutions of perspective, that multisourcing Jeff, the to question. it, strategy chain ourselves Michael, Nutrien but due have you and and to the Ag the a

energy a our a said, glufosinate, put be in one position ‘XX. on supply. bit of some that put is the from some know the in much to understanding certain glufosinate will mentioned, of challenging on put a in of constraints be in relative seed more China, to crisis As the you challenge on sales little the active and that area challenging therefore, Michael, as was is for ‘XX, ingredients, more place going We what enabled to Jeff front situation Ida obviously we’re foot on going constraints on glyphosate, looks continue Hurricane like. use

organization agronomists help control As is as connected Jeff control. Jeff can well communication, farmers, best agronomic whether or solutions we control, said, have to forward said, the disease to bring sales current our so in supply as our we tight it’s insect as directly position our our organization chain other and situation needs, to weed meet supply

Operator

from line next question Adam comes Samuelson the Sachs. of Goldman of Your

Adam Samuelson

a flow we’re year, on look just capital year allocation, the next Maybe be profitability in very generation tracking half cash the sizable. first here is the of and question about Yes. half EBITDA to second in where of this thinking the we and tracking

back You’re stock. buying

size You think $X scope over kind reduction But internal inorganic or -- you billion medium think would of inorganic cash to there look what next about acceleration that talked prices an the what a of X opportunities kind where of months. opportunities long-term out might versus CapEx debt over I’m about and cash term. kind in of of trying flow return about these us just help of like, to shareholders? or be the get deployed can how the kinds

Mayo Schmidt

that for question. thanks No, Sure.

relating drive number that evidenced that’s And the and Pedro pointedly I we point would what have growing before to, year We’ve I’ll in value strategically. integrated ever when to this we a pull our avenues, several than I think execution. about think of quite in shareholders. frankly, to think but business more for a I moment, been platform,

can that every of to in to producers our the the and worked providing supply we vertical our when sale even our venues, really it the obviously, all well, about the successful us Australia it’s good to David have you think Brazil. then guidance the You’ve position to think ultimately way any value how we production how standards articulated, fertilizer. about in field, down every as every in return to soil want chemistry, integration very make has the chain have in farmers driving the very, because of are the retail entire puts And in a those terms we, out them close us agronomists allocate and chemical seen meeting the to the Jeff cycle through one in strategically just past, capital which and of between through and we

like take at a I’d to maybe you that. Pedro, crack So

A –Pedro Farah

you, Yes, thank the no, question. Mayo. you, Adam, And for thank

it so far noticed robust of that the we in already but the we some of to put have business, quite retail, this our have a a Brazil. and now, of is in a repurchases would very And -- earnings. you has Mayo for cash number diversification bit the good you pipeline different flow problem distributed have to in are, out, have year right addition, the this they of we mentioned, and especially opportunities done share investment continue in as strength As a have

the we have you also and million mentioned tonnes cash X is us only have flow do not expanded allow past the additional that free nitrogen are in We to what in going for creates the sheet, returns continue also and balance of our same of us retail which but for cycle, through options with delivering the the both in shareholder decarbonization further investments nitrogen. investments to

successful have added completed Phase million of that nitrogen. about X a of nitrogen just We X.X tonnes

projects very those tonnes, for are as we reduction with will additional for capital, nitrogen a as for a well next-gen actually that while we no coming on this X.X use so even well. have phase we time until million embarking as point a another opportunities there. be are have cost now projects And there second capital fields to still initiatives virtually and well. profitable, potash, time in at are And and ground very good at coming We’re for

in over addition compete will that for anything apply on capital basis. So a to

be with with enough point our to capital the aligns at might excess I growth next -- inside June will that our that of sort programs right in the have initiatives. foreseeable and how coming we for that think we everybody now for we in time to but have back future, plants

Operator

of from line question James. Raymond Your comes with Steve Hansen the next

Steve Hansen

Yes.

to capital Just Or proprietary there you also target to if back play capabilities XXXX deployment Brazil? here. into be curious the even if you strategy products similar wondering in might how type might perhaps acquisition that I’m thinking be of Actagro, targeting I’m be looking example, for might products specific or deals? the

A –Mark Thompson

Thanks the Steve, it’s Mark. Yes. for question.

So Actagro, to is Nutrien the model, similar is proprietary particular. Ag a many we’ve specialty in which building approach then decade and business, platform well of our noted, North business out and America, noted, lines. We Solutions a as products And spent a nutrition performing which Steve, for chemistry you the specialty we building Brazil has Products attractive acquisition as completed ago. as our Loveland years very in the past Nutrien been that taken you And years well. very few over

So really for recently, services business you you’ve in platform how us just soybean the retail provided and which a of on value several with really Agrichem we when and platform differentiator growers. that’s specialty through Agro and ago in for our seen bolting years in nutrition. we’ve us Tec products Brazil, us solution real acquire provide to completed also distribution attractive us that a seed also acre added provide acquisition full a but core with that of And think

Loveland well With the to acquisitions that and penetration the in out. we’ve grow as portfolio the we opportunity feel got the growth products the have, Brazil that great portfolio we organic of portfolio, Actagro a existing continue as expanding then network we

doesn’t So good a gate. look over at it’s opportunity that an course, margin. business geographic for capital farm us organic But of we to It expansion high retail extremely that’s the as require really further us the investment. time, differentiates area of

opportunistically but we’ve what area is, look it’s in continue growth. we’ll with meaningful fit, So to of our a very course, And as way to today. we’re it a got in that obviously, strategic contributing happy

Operator

Zekauskas, JP question Morgan. of Jeff next line comes from Your the

Jeff Zekauskas

natural capacity on high, are Russia. exports global Europe, offline think a what you They Eastern do XXXX? think phosphate phosphate you in will be in end prices area, How basis? do in is China And and much Europe the gas

Jason Newton

million think itself, XX Western tonnes. And in ammonia XX% look is we we Europe Europe if capacity the Jeff, about offline. there’s Central about in of

And so that offline. million current in roughly also capacity tonnes would and currently And ammonia additional capacity at of time. offline that there’s to equates Ukraine, the Ukraine, that’s X exclude

in China, little constraints at in And export they first the but to As about half level of of we of X over restrictions, right export look wouldn’t X be terms given we expect to about year, exports next toward tonnes year. of exports XXXX. that X.X now million them China the XXXX tonnes this terms million phosphate from expect somewhere we be in – a

to keep restrictions bit of XXXX moving volumes will still sort level a from tonnes China, given uncertain but exports it’s where in is early a were the from estimate the perspective, to they constraints. applied. and exports million a to similar XXXX, range in of export to need X realistic certainly increased where likely million X those so need will And how in of be We be supply-demand those

Operator

next of question the comes Jacob from CIBC. Your Bout, line

Jacob Bout

supply this? I on sales wanted year-to-date. I And to were little perspective? I a discussion you bit thinking sustainable should what seeing certainly is up organic How out been we go back be growth. you from But helped. about can talk about a to know year? this that And same-store you've than retail how think X% a more that chain bit hinted normalized

Mayo Schmidt

pass going to like Jason the probably do comment first We've, see to next our market. this I'd on ROIC I'm of terms those. in then would at expectation just to our that or that to and leader what is that, in we maybe say, continue opportunity have I Mark? look But along outachieved

Mark Thompson

a I'll our Mark, comment make This I'll is retail Jeff maybe then Yes, just have and comments. few business. from Jacob,

we've business terms was of print very that in the organic delivered So the in growth year, course, strong. the and of attractive this

think that's standpoint. a part inputs, the in belies in demand which generally from course, agriculture seen same-store our parcel performance market. sales fundamentals We've growth in the and seen I strong of for of that crop strong we've

I gains shells. Jeff and it more and to market little to of a seen the some attractive provide alluded to you leadership in the continuing of Mayo bit detail. and share prepared position the think our up in across made also pass some the Jeff, earlier to as commentary shelves remarks, input ground both build expanding several across market, share we've maybe I'll

Jeff Tarsi

Mark. has in at And I for of sure, growth tremendous And business again top it at our XXXX all And we success look, the adjuvants if this and we saw XX% from seed growth Jason, profit plant XX% in this protection, look Yes, I segment. at market think crop look and of pure market standpoint, Mark revenue at a little and X look thanks. we treatments, focus If products. organic products, year share that like and a gross will as standpoint. our I bit focus feel grew said, proprietary XXXX. when had we've great an this and crop it look share growth ships shelves of of fertilizer, it, with organic past increases both just And deeper in XX be nutrition into we've our been I seed XXXX, radar year, I us with protection all points. from mentioned our somewhere past there, seed. primary and for major was basis and And fertilizer in X seed the a look, between proprietary When XX a in us

we It's areas, major in a start even supply our there's an position a relates to as for in and that. more that really X-year variety good excellent one trait rootworm actually we going some seen We we're our with like past an And our trade well concern. coming organic matter an we've and place. of Dyna-Gro around off to in think that's with this grow growth right our just opportunity had also it shelf. comes great XXXX, availability seed to the year, when shape. a opportunity initiative results to that is XXXX. is issues suppliers shelf have corn increase both initiative. pressure of forward is varieties XXXX, of that's fact, from from talking Jacob, the a up a this not got just standpoint all got that largest seeing that And an in seed it to because of things past and year proven and standpoint off we've As we and in what in disease indications tremendous be expect to We're the of and going as and All now. We

he's what and Rob So and proprietary Canada, U.S., And market have obviously, in it. the well I organic growth the stronger in in that increasing really market. in doing feel there about the good our with that even Australian still business opportunities as we

an organic So standpoint. we feel growth from real good

I think time. increase over see you'll continue that to

Operator

comes question P.J. from Juvekar, line the next Your Citi. of

P.J. Juvekar

questions. of couple quick a Just

mix million going to the if potash, tonnes. I you capacity project the First coming light price in, sort where million What of potash see when for X activate do tightness Ron, the online on And growing your have into tonnes by this production capacity year? Jansen Mayo X X like that’s years? you seeds? left, say, cuts the X can that about continues, And that at price you to secondly, are least you guess in low-cost in would you especially of of for indicating up season? this ramped talk And

A –Mayo Schmidt

Thank be which you. first Jeff, to I’ll the and I’ll let the half, I happy think then to you take start on second. you, was directed

Jeff Tarsi

Yes.

the ‘XX standpoint, from a season. summer, those we to seed released were increases modest fall, carry early that think expect a pricing late standpoint, would saw increases and into I obviously we

little booking were. business. indications heavier they increases David, But increases they fall would major seed think be been our maybe for and I that were and share. than well bit I of We’re few want piece. lines with all probably what in on some have that we pleasantly speaks started there getting to do a the you we were think But might comments just really the seed heavily way the far came out modest, increasing our as surprised in seed a more for across have the XXXX the as

David Elser

you Yes, particularly follow soybeans. corn and increase. of – look sort be said, we end at look across on Jeff question. Jeff. to of cards, the the across seed that a little modest the and proprietary brands, our surprised on When And top and probably P.J., thanks of for to average, soybeans We, lead range. own X% or terms both look X% at in to corn as price And

are of of process now, in the XXXX. up in out said, momentum as So the the process and teams seed and farmers into are finishing book Jeff harvest

Mayo Schmidt

marketplace. additional when we’ve downtime the million in Ken production, doubt, back on need on guidance your very of question that between the you tonnes on so when question, in at deliver X additional Jansen second, reflected XXXX some we’re to pace the we’ll expect that to of And be but million think our and ask really good I tonnes. Ken look here operating as metric XX.X is my maintenance in projects. is we tonnes had which and X, earlier, demand by, to commented and And your as that And additional always COVID XX in quarter demand, restrictions, gives next potash really then a on coming potash extra but up No that to But indicated network project, at that then X would good in think remarks, million and to I’ll to a because effectively. XX downtime forward, that X in low-cost mine takes X% to if as the of you million mines, is least there’s took XX.X the the number we million catch take was supported past, I advantage. mentioned times in growth additional X% XXXX you in And of the there’s probably about competitive look to years us us a sales. of

production. do maybe if looking when online, that not maybe more really that we comes So with tonnes absorb, think X X.X the years, that market million X Janssen years project for will easily

to want to don’t I Ken, that? So know add if anything you

Ken Seitz

there, of growing Yes. XX average tonnes Mayo, X% close preserving additional Well, to million to million tonnes think you’re market production, next growth an this annual year. X.X% saying what for rates. is year, X The consistent I just with

maintain to expect market We share.

eventually be additional brownfield million after And million recalling increasing tonne. XX so very also low-cost tonnes, but we’ll $XXX X tonnes that of have to about yes, capacity that, an per production we

on calling more. are Jansen, pacing I to add to as So for agree long we’ll growth as the provide be nothing there, be our couldn’t our And customers comments Mayo. it. there we’ll potash,

Operator

next line Your Roberts, John comes UBS. the question of from

John Roberts

Nutrien than We’ve recent quarter. you syngas project and have announcements also sequestration-related Dow, we nice carbon by a and expect Coast. projects Do then in blue to currently bigger had Air promoting blue Gulf sequestration. you is plant on what Products pursuing ammonia Congratulations the Alberta had be underway? the

A –Raef Sully

at ammonia that about. the think the to into about be or there alternatives, to you generation that start, will we if important electrolysis sequestration that hydrogen low-carbon whether transportation ammonia or appreciate I carbon marine global available out carrier, our I through power that’s fits think certainly guess And John, different the talked question. decarbonize. an are technologies low-carbon energy revenues of There puzzle. you agriculture would to efforts part from

particularly an couple if we in we’re interesting position sites We’ve the have. advantages, here. so at got of some look And you a competitive

Louisiana. COX with do start So already let me We in sequestration Geismar there.

an site. So existing we the have to pipeline

for We have through relationships sequestration the We’ve got the us. access. with existing company deepwater

to ammonia of So global we able an certainly advantaged be is that part build position. if anybody low decarbonization, to have carbon

So discussions production sequestration. we’re looking low-carbon are out had there. as with coupled choose about to have be We already at the technical hard well. discussions million some had there around And that. to technology be the of Obviously, X which then there’s commercial tonnes to

we’re that in So regard, of ahead our competitors.

locations also Redwater of Saskatchewan at Carson. Edmonton We site the at Alberta had and and around Port

to tie in certainly trunklines position able into So Nigeria there to a as in be well. we’re

this. So certainly answer looking is at think we’re I the

we’ve market. out an ready got when position. about talk I we’ll back some And think advanced projects, to we’re be to definitive the

Operator

from comes line Wong, Markets. the of Andrew Capital question next Your RBC

Andrew Wong

potash on And inventories. to the quickly. wanted just to I ask bit potash little the I a wanted back go

and the purchasing prices on So we've potential that for of of limited the there's concern activity. seen been buyers sanctions impact and a there, maybe out of the some potash coming around and lot availability from recent Belarusian

view, that market? that the been concerns there of overhang buyers So have in afterwards? some aren't that we is possible your these any the be if sanctions any as active And is there risk these have may build-up there in strict inventory from and

Mayo Schmidt

Let begin far course, metric reserves And the key auction. global their of drawdown of we consumption me just around inventories. begin to regions by they is tonnes, think between comment China these exceeding million in X.X to start inventory potash which many just which strategic includes about to shipments X.X a in clearly And million already when port that, to think the I world. is the leading

comment. global they and of those So and the been some Jason haven't is at I able elevated Ken the levels further sustain would think, to or whether to port, it on, benchmark like reflecting

Jason Newton

Yes.

situation. on I the touched think Mayo Chinese

inventories now of X.X In also right to past about tonnes. of application of Brazil, a in see which and the the the We as over in application right chain fall the carryout mentioned And million line supply in we earlier, to Right couple low season years, with low really season, year will the where supply, are think move be the we as we year. the to expect in given India, early inventories midst U.S., been. we're have is fall end just strong a tends harvest, lead good the they're now, in expect just at they line extremely XXXX. in with inventories finish into where been that which have we'd they the tailwind and them

seen year-over-year. a come significantly inventories some globally. haven't in So And down we especially overall, the contract seen pretty them build-up in markets, markets, we've

Operator

Your Berenberg. line of the next from question Adrian Tamagno comes of

Adrian Tamagno

will new for I is Phase fair achieved. all have the of to will in expect have X be you a extra question about all, million XXX,XXX X expansion? incremental And it tonnes products nitrogen. when When nitrogen tonnes this

you will can products give that [indiscernible]. directed more the which color So to around be

Raef Sully

certainly. Adrian, Yes,

brownfield That's our we started expansions them. announced of when phase first in XXXX. were the So

time So get to in it's taken them us this place.

up next tonnes they help million to get about XX.X So us will year. production

X.X we projects. tonnes. have on our million X mentioned, Phase Pedro As started another That's

through most those XXXX. can of expect time we You get online by the

time So the tonnes. X-year at close finish should XX pushing we be we to the plan, million

on from Now in addition, products those targeted are ammonia. expansions downstream

is produce need there those growing, urea, more more more ammonia, there there, increases So ammonia where are where while added flexibility that's the some in we products to profitability. feel DEF small help to some improve is UAN, market us while some we

expansion. that's the So

In addition been on quite we've those to expansions, improvements. working reliability hard

because years of years seeing undertake, capacity -- we X, keep now. increased That's scope at we've an XX turnarounds is old couple XX had condition. turnarounds replace over plants Borger done a increase. we those old so against into top to get work the as time, pulling year at And utilizations the having as these you We're and ever Redwater. turnarounds plant largest the this over in and components, of the increased that Drawing the try we we're see and these should

the age into I tonnes, million the So million expansion we've working the got projects, And may downstream additional get XXXX. certainly as expansions open so X.X there at but against And of the time tonnes question. to us, we We're beyond as X.X UAN. then that. be plants, hope at we've said, mentioned, predominantly, I looking Urea, that answers the further. products your I got now

Operator

There closing are at questions further Presenters, any no you do remarks? time. this have

Jeff Holzman

operator. you, Investor will any Thank The for be Relations available questions. follow-up team

Operator

This concludes today's conference call.

disconnect. now may You

Nutrien (NTR) 2 Nov 212021 Q3 Earnings call transcript