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August 02, 2023
By
Reuters
Nutrien to pause potash ramp up,
ammonia project on falling prices
![](images/images_08_03_2023/pic1.jpg)
A general view of Nutrien's Cory potash
mine is seen near Saskatoon, Saskatchewan, Canada August 12, 2019.
REUTERS/Nayan Sthankiya/File Photo
Aug 2 (Reuters) - Nutrien (NTR.TO) on Wednesday
decided to indefinitely pause its ramp-up plans for potash production
and halt work on its clean ammonia project at Geismar, Louisiana, as
the world's biggest fertilizer producer grapples with falling prices.
Its U.S.-listed shares fell 2.6% in extended trading as the company
cited market conditions for stopping efforts to bolster potash output
to 18 million tonnes.
Potash prices have eased after the resumption of shipments from major
supplier Belarus, whose exports were largely frozen last year due to
western sanctions after Russia's invasion of Ukraine.
The suspension of work at its 1.2 million tonne clean ammonia plant
was due to elevated costs and uncertainty on the timing of emerging
uses for clean ammonia, it said.
Fertilizer companies have been building ammonia plants along the U.S.
Gulf of Mexico to take advantage of Inflation Reduction Act subsidies
and the existing export infrastructure.
Nutrien also lowered its 2023 adjusted earnings forecast to the range
of $3.85 to $5.60 from a prior view of $5.50 per share and $7.50 per
share.
It had said in July that it would cut production at its Cory Potash
mine and expected its full-year profit to take hit from lower exports
due to a strike by Canadian dock workers.
"We expect Canadian potash exports will be constrained by logistical
challenges primarily due to the strike at the Port of Vancouver," the
company said.
The top potash producer said it expects to cut capital expenditure by
about $200 million in 2023.
Nutrien reported adjusted earnings of $2.53 per share for the three
months ended June 30, missing expectations of $2.77, according to
Refinitiv data.
Peer CF Industries (CF.N) had posted a 54.8% slide in second-quarter
due to weak selling prices.
Reporting by Sourasis Bose in Bengaluru; Editing by Maju Samuel and
Arun Koyyur
Green Play Ammonia™, Yielder® NFuel Energy.
Spokane, Washington. 99212
www.exactrix.com
509 995 1879 cell, Pacific.
Nathan1@greenplayammonia.com
exactrix@exactrix.com
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