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Mar 31, 2021
CF Industries Q1 2021 Earnings Report
CF Industries' first quarter results were solid, underpinned by rising nitrogen prices and partially offset by lower production and sales volume.
Key Takeaways
CF Industries reported net sales of $1.05 billion for Q1 2021, compared to $971 million in Q1 2020. Net earnings were $151 million, or $0.70 per diluted share, compared to $68 million, or $0.31 per diluted share in Q1 2020. Adjusted EBITDA was $398 million compared to $318 million for the same quarter last year.
Net sales in Q1 2021 were $1.05B compared to $971M in Q1 2020.
Average selling prices for Q1 2021 were higher than Q1 2020 across most segments due to decreased supply availability as higher global energy costs drove lower global operating rates.
Sales volume of 4.6M tons in Q1 2021 compared to 4.7M in Q1 2020 due to lower supply availability from lower production
Company completed redemption of remaining $250 million of Senior Secured Notes due December 2021
Forward Guidance
The company expects a highly favorable environment for low-cost producers that appears sustainable into 2022.
Positive Outlook
- Low global coarse grains stocks-to-use ratios and higher energy prices in Europe and Asia have significantly tightened the global nitrogen supply and demand balance
- Stocks - to - use ratios at multi - year lows has driven the highest commodity crop prices in nearly a decade, supporting strong nitrogen demand to maximize yields globally
- Strong nitrogen demand expected in North America in 2021; global requirements driven by robust demand from India and Brazil
- The Company expects 90 - 92 million corn acres planted in the US with higher canola plantings in Canada and industrial use rising due to higher economic activity
- Widened energy differentials have steepened the global nitrogen cost curve, increasing margin opportunities for North American producers
Historical Earnings Impact
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Avg. Return Before/After Earnings
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