CF Industries Q4 2022 Earnings Report
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