CF Industries Q1 2020 Earnings Report
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.
CF Industries
CF Industries
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.
- Possible less favorable growing conditions in India affecting urea tender volumes.
- Announced outages include nitrogen facilities in India and France