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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.
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.
Historical Earnings Impact
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