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SASKATOON — Nutrien Ltd. is indefinitely pausing its potash manufacturing ramp-up and postponing paintings on its Geismar blank ammonia challenge after a duration of “unheard of volatility” in fertilizer markets, stated leader govt Ken Seitz on Thursday.

Chronic uncertainty in international crop enter markets over the last 18 months were a problem, and helped result in considerably decrease internet profits for the corporate in the second one quarter of 2023, however there are nonetheless sure indicators forward, he stated on an analyst name.

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“We’re inspired by way of the ongoing development in call for because the yr has advanced. That is most blatant in North The usa, the place we had a powerful spring season, relative fertilizer value steadiness and a vital relief in channel inventories,” stated Seitz.

On the other hand, he famous call for has been slower in sure offshore fertilizer markets.

The strategic motion to drag again on infrastructure investments replicate the corporate’s dedication to disciplined capital allocation and embellishing loose coins float, Seitz stated.

Nutrien reported second-quarter internet profits of US$448 million, down from US$3.6 billion a yr previous, and revised its full-year steering decrease amid financial pressures together with decrease potash costs.

Gross sales had been US$11.7 billion, down from US$14.5 billion throughout the similar quarter ultimate yr, the corporate stated in a press unencumber Wednesday. Diluted internet profits according to proportion had been 89 cents US, down from US$6.51.

The decrease profits are principally because of decrease promoting costs, weaker offshore potash gross sales volumes, and decrease retail gross margin for crop vitamins and crop coverage merchandise, Nutrien stated. It added that internet profits had been additionally hit by way of non-cash impairments of US$465 million and US$233 million.

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Nutrien is endeavor different cost-cutting measures along with pausing its potash ramp-up and postponing paintings at the ammonia challenge. Those come with decreasing expenditures in each operations and in smaller retail funding initiatives.

The corporate has additionally taken focused movements this yr to scale back headcount amid salary inflation, stated Jeff Tarsi, govt vice-president and president of worldwide retail, at the convention name.

“We’ve been very planned about controlling our controllables. And we’re getting rid of discretionary prices throughout our community,” Tarsi stated.

Canadian potash exports will probably be constrained within the 3rd quarter by way of logistical demanding situations associated with the B.C. ports strike, stated Seitz, in addition to an outage at Canpotex’s Portland terminal.

“It would take a number of extra weeks till the backlog is cleared and the availability chain returns to customary,” he stated, including this ended in a decrease estimate for international potash shipments in 2023, to a spread of 63 to 65 million tonnes.

Nutrien diminished its full-year steering because of weaker potash costs, decrease projected potash exports, and different components.

It now expects full-year adjusted profits earlier than hobby, taxes, depreciation and amortization to be between US$5.5 and US$6.7 billion. Steering ultimate quarter used to be between US$6.5 and US$8.0 billion.

Stocks within the corporate had been down greater than 4 according to cent in mid-afternoon buying and selling Thursday after the Saskatoon-based corporate reported its profits after the bell on Wednesday.

This document by way of The Canadian Press used to be first revealed August 3, 2023.