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Jun 30, 2021

CF Industries Q2 2021 Earnings Report

CF Industries experienced solid first half results underpinned by rising nitrogen prices, partially offset by lower production and sales volume.

Key Takeaways

CF Industries Holdings, Inc. reported net sales of $1.588 billion for the second quarter of 2021, compared to $1.204 billion for the second quarter of 2020. Net earnings attributable to common stockholders were $246 million, or $1.14 per diluted share, for the second quarter of 2021, compared to $190 million, or $0.89 per diluted share, for the second quarter of 2020.

Global nitrogen price dynamics have significantly tightened the global nitrogen supply and demand balance.

Stocks-to-use ratios at multi-year lows have driven the highest commodity crop prices in nearly a decade, supporting strong nitrogen demand to maximize yields globally.

Energy prices in Europe and Asia increased significantly from the lows of 2020 and returned to sizable differentials compared to Henry Hub natural gas prices in North America.

India is expected to tender for urea frequently in the second half of 2021, with purchases expected to approach 10 million metric tons for 2021

Total Revenue
$1.59B
Previous year: $1.2B
+31.9%
EPS
$1.14
Previous year: $0.89
+28.1%
Gross Profit
$503M
Previous year: $334M
+50.6%
Cash and Equivalents
$777M
Previous year: $563M
+38.0%
Free Cash Flow
$18M
Previous year: $374M
-95.2%
Total Assets
$12B
Previous year: $12B
+0.5%

CF Industries

CF Industries

Forward Guidance

The company projects capex for full year 2021 ~$500 million, which reflects maintenance activities deferred from 2020 as well as activity that was previously planned to occur in 2022. 2021 capex includes expenditures for the green ammonia project at the Donaldsonville Complex