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Mar 31, 2020
CF Industries Q1 2020 Earnings Report
CF Industries' financial performance remained strong, demonstrating resilience through efficient operations and strategic capital management.
Key Takeaways
CF Industries reported net earnings of $68 million for the first quarter of 2020, with an adjusted EBITDA of $318 million. The company focused on maintaining safe and efficient operations while navigating a commercial environment marked by lower average selling prices.
Net earnings for the first quarter were $68 million, or $0.31 per diluted share.
EBITDA reached $314 million and adjusted EBITDA was $318 million.
The company achieved its lowest recordable incident rate, highlighting safe operations.
Approximately 2.6 million shares were repurchased for $100 million during the quarter.
Forward Guidance
CF Industries anticipates positive near-term global nitrogen demand driven by increased planted corn and coarse grains in 2020. The company expects North American nitrogen production to remain at the low-end of the global cost curve due to access to low-cost natural gas.
Positive Outlook
- Favorable planting conditions in the U.S.
- Farm-level income support.
- Strongest April movement of ammonia for spring fertilizer application since April 2015.
- Expected higher demand for urea in Brazil in 2020.
- North American nitrogen production expected to remain at the low-end of the global cost curve.
Challenges Ahead
- COVID-19 impact on nitrogen demand for industrial applications.
- Uncertainty regarding factors influencing farmers’ planting decisions in 2021.
- Potential delays in new nitrogen capacity projects due to labor and equipment issues.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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