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Jun 30, 2024
CF Industries Q2 2024 Earnings Report
CF Industries reported net earnings of $420 million for the second quarter of 2024.
Key Takeaways
CF Industries Holdings, Inc. reported second quarter 2024 net earnings of $420 million, or $2.30 per diluted share. Adjusted EBITDA was $752 million. The company continues to operate safely and expects gross ammonia production for the full year 2024 to be approximately 9.8 million tons.
Second quarter 2024 net earnings of $420 million, or $2.30 per diluted share, EBITDA of $752 million, and adjusted EBITDA of $752 million.
Trailing twelve months net cash from operating activities of $2.02 billion and free cash flow of $1.15 billion.
Entered agreement with ExxonMobil for the transport and sequestration of up to 500,000 metric tons of carbon dioxide from Company’s Yazoo City, Mississippi, facility; start-up expected in 2028.
Repurchased 4.0 million shares for $305 million during the second quarter of 2024.
CF Industries
CF Industries
CF Industries Revenue by Segment
Revenue by Segment
Ammonia Revenue
CapyFin.comGranular Urea Revenue
CapyFin.comUAN Revenue
CapyFin.comAN Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Management expects the global supply-demand balance to remain constructive, led by nitrogen import requirements through year-end for Brazil and India and continued wide energy spreads between North America and high-cost production in Europe.
Positive Outlook
- Nitrogen channel inventories in North America are below average based on strong demand for urea and UAN during the spring application season and higher-than-expected planted corn acres.
- Urea consumption in Brazil in 2024 is forecast to increase 3% year-over-year to more than 8.0 million metric tons.
- India is expected to be active importing urea through the second half of the year.
- Approximately 25% of ammonia and 30% of urea capacity were reported in shutdown/curtailment in Europe in early July 2024.
- Ongoing urea export controls by the Chinese government continues to limit urea export availability from the country.
Challenges Ahead
- Softening farm economics in North America as corn and soybean prices have fallen due to higher forecasted production in 2024 in the United States and Brazil.
- Urea imports to Brazil in 2024 are expected to be in the range of 7.0-8.0 million metric tons as domestic production remains limited.
- Urea imports to India in 2024, including volumes supplied on a contractual basis, to be in a range of 5.0-6.0 million metric tons as recently revitalized plants and new facilities in the country operate at higher rates.
- Ammonia operating rates and overall domestic nitrogen product output in Europe will remain below historical averages over the long-term.
- Annual ammonia export volumes from Russia are projected to remain below pre-war levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income