Fertilizer maker Nutrien NTR-T on Wednesday surpassed second-quarter profit estimates, helped by higher potash sales in offshore markets, and named insider Mark Thompson as its finance chief.
Thompson, currently the company’s chief commercial officer, would take on the new role from Aug. 26. He would succeed Pedro Farah, who would remain in an advisory capacity until Dec. 31.
U.S.-listed shares of Nutrien rose 1.9 per cent in extended trading, after the world’s largest potash producer also raised its annual potash sales volume forecast.
Fertilizer demand from farmers has started to recover after they withheld purchases last year following a spike in prices in the aftermath of the Russia-Ukraine war.
“Global potash demand in the first half of 2024 was supported by favorable consumption trends in most markets and low channel inventories in North America and Southeast Asia,” the company said.
Total potash sales volume rose 5.4 per cent to 3.56 million tonnes during the quarter, partly offsetting a 28.9 per cent decline in net potash selling price.
Nutrien expects 2024 potash sales volumes to be between 13.2 million tonnes and 13.8 million tonnes, from its previous range of 13 million tonnes to 13.8 million tonnes.
The company, however, trimmed its annual phosphate sales forecast on extended turnaround activity and delayed mine equipment moves.
Nitrogen sales volume during the second quarter fell 4.3 per cent due to wet weather impacting timing of nitrogen applications.
The Canadian company also took a non-cash impairment charge of $530-million due to its cost-cutting initiatives, including pausing its clean ammonia project in Louisiana and some operations in Brazil.
Nutrien lowered its 2024 adjusted core profit forecast for retail sales due to weakness in Brazil, where high inventory levels and tepid demand dented its margins for most of last year.
Adjusted earnings of $2.34 per share in the second quarter beat LSEG estimates of $2.21.