US Gulf urea values recover as gas diversions and production cutbacks bring producers to the market; activity elsewhere limited
CF Industries this week announced net earnings of $87m during Q4 2020, up from $55m in Q4 2019, while it’s EBITDA was at $334m, an increase from $306m.
The firm’s full year 2020 earnings declined to $317m, while EBITDA also fell to $1,316m, compared to 2019 net earnings of $493m and EBITDA of $1,620m. Net sales in 2020 were at $4.1bn, versus $4.6bn in 2019. The producer noted that average selling prices for 2020 were lower compared to 2019 across all segments owing to increased global supply availability, with lower global energy costs driving higher global operating rates.
Net sales for CF Industries granular urea segment increased during Q4 2020 to $333m, from $239m in Q4 2019. However, across the whole year sales fell to $1,248m, down from $1,342m in 2019.
Average selling prices decreased due to increased global supply availability, as lower global energy costs drove higher global operating rates, the firm stated. However, urea sales volumes in 2020 were higher than 2019 due to greater supply availability from higher beginning inventories entering the year, as well as higher production.
The producer’s UAN net sales in Q4 2020 declined to $272m, from $336m during the same period of 2019, and also declined over the whole year to $1,063m from $1,270m in 2019. While the firm’s UAN sales volumes in 2020 were comparable to 2019, it’s average selling prices decreased in 2020 compared to 2019 due to increased global supply availability as lower global energy costs drove higher global operating rates.
Nutrien also released its Q4 and full year 2020 results this week. Net earnings during Q4 increased to $316m, compared to a loss of $48m during the same quarter of 2019. The firm noted that net earnings were significantly higher in Q4 2020 owing to improved operating results and the gain associated with the MOPCO transaction, together with the impact of impairments seen in Q4 2019.
Net earnings for 2020 declined to $459m, from $992m in 2019. The producer attributed this to lower realised crop nutrient prices and the non-cash impairment of assets largely related to its phosphate operations in Q3 2020.
Nutrien’s adjusted EBITDA gained 16% to $768m in Q4 2020, from $664m in Q4 2019 owing to its strong retail earnings growth and higher potash sales volumes, however, during 2020 it’s adjusted EBITDA fell 9% to $3,667m from $4,025m in 2019, primarily due to lower crop nutrient prices that more than offset strong retail organic growth, earnings contributions from acquisitions and greater operational efficiencies, the producer stated.
The firm’s nitrogen segment saw an increase in net sales in all products during Q4 2020. Sales of urea gained 19% to $230m, while ammonia sales increased 11% to $157m. Solutions, nitrates and sulphates sales saw a small increase to $168m, from $166 in Q4 2019.
The volumes sold across all three products saw strong increases over the period, with ammonia up 28% to 730,000t, urea up 23% to 853,000t, and solutions, nitrates and sulphates sales up 15% to 1.26m. tonnes.
Throughout 2020, Nutrien’s net sales of ammonia declined 16% to $621m, solutions, nitrates and sulphates fell 5% to $668m, while urea sales remained steady from the previous year at $933m.
Notably, the producer’s total nitrogen sales in 2020 were the highest on record as a result of recent expansion projects and strong overall operating rates at its North American facilities. Sales volumes for urea increased 14% to 3.48m. tonnes in 2020, while sales of solutions, nitrates and sulphates gained 11% to 4.71m. tonnes. Ammonia sales volumes declined 6% to 2.78m. tonnes.
Total nitrogen sales volumes increased in Q4 and throughout 2020 compared to the same periods in 2019 due to strong fertilizer sales in North America, which more than offset lower global industrial demand, the firm noted.
By Neha Popat, Nitrogen Market Reporter
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