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Dec 31, 2022
CF Industries Q4 2022 Earnings Report
CF Industries achieved strong results in Q4 2022, driven by solid operational performance and favorable energy spreads.
Key Takeaways
CF Industries reported net sales of $2.608 billion and net earnings attributable to common stockholders of $860 million, or $4.35 per diluted share, for the fourth quarter of 2022. Adjusted EBITDA for the quarter was $1.296 billion. The company returned $1.65 billion to shareholders through share repurchases and dividends and progressed clean energy initiatives.
Net sales reached $2,608 million.
Net earnings attributable to common stockholders were $860 million, resulting in earnings per diluted share of $4.35.
EBITDA amounted to $1,246 million.
Adjusted EBITDA totaled $1,296 million.
CF Industries
CF Industries
Forward Guidance
Global nitrogen supply/demand balance to remain tight into 2025 due to agriculture-led demand and forward energy curves that point to challenging production economics for producers in Europe and Asia.
Positive Outlook
- Farm economics are expected to remain positive for 2023, supported by strong crop futures prices and improving yields, assuming a return to normal weather conditions
- Expected to continue to be one of the world’s largest importers of urea in 2023
- Management expects demand for urea imports to remain strong in 2023 due to high crop prices, increases in planted acres and improved farm income levels
- Higher-than-normal levels of nitrogen imports into Europe expected in 2023 due to lower-than-normal ammonia operating rates in the region
- Forward energy curves continue to suggest that wider differentials between North America and Europe/Asia will persist; supporting significant margin opportunities for low-cost North American producers
Challenges Ahead
- Global nitrogen supply availability loosened in the fourth quarter due to weak industrial demand in Europe and Asia
- Delayed purchasing in the agriculture sector
- A partial recovery of European ammonia operating rates.
- Urea exports remain low due to government measures to promote domestic availability and affordability; 2-3M metric tons expected for export in 2023, returning to 3-5M metric ton range if government measures loosen
- Ammonia exports were significantly lower in 2022 compared to prior years due to Russia’s invasion of Ukraine