Nutrien Ltd (TSX and NYSE: NTR) announced today that it expects to increase potash production by approximately half a million tonnes in the second half of 2021 compared to earlier expectations, in response to tightening global potash market conditions. Nutrien has a flexible network of six world-class potash mines with competitively positioned, available capacity that it can utilize to help supply global demand.
“We are responding to strong market fundamentals to ensure our customers have the crop inputs they need to feed a growing population. Our network of flexible production and extensive logistics is designed to provide reliable supply and we have a unique ability to be agile and respond to changing market conditions. Our potash asset portfolio is optimally positioned to meet customer needs and drive shareholder value,” commented Ken Seitz, Nutrien’s Executive Vice President and CEO of Potash.
Domestic and offshore potash sales volumes are currently fully committed through September, based on our original production profile for 2021. Nutrien will be actively hiring additional employees and adapting its resources to help increase production across most of its potash mines, ramping up its Vanscoy facility in particular, and will ensure the highest safety standards are maintained in the process.
Nutrien expects these actions to result in upward revisions to potash-related guidance for the second half of 2021 from both a volume and EBITDA perspective, which will be addressed in second-quarter 2021 results. Nutrien continues to actively monitor the market and evaluate other potential options to further increase production if demand warrants it and may provide additional information in this regard at a later date.
Nutrien is the world's largest provider of crop inputs and services, playing a critical role in helping growers increase food production in a sustainable manner. We produce and distribute 27 million tonnes of potash, nitrogen and phosphate products world-wide. With this capability and our leading agriculture retail network, we are well positioned to supply the needs of our customers. We operate with a long-term view and are committed to working with our stakeholders as we address our economic, environmental and social priorities. The scale and diversity of our integrated portfolio provides a stable earnings base, multiple avenues for growth and the opportunity to return capital to shareholders.
Certain statements included in this press release constitute “forward looking statements” under applicable securities laws, including without limitation those referring to expectations regarding potash demand, production and guidance. These statements are based on certain expectations and assumptions made by Nutrien (all as more fully described in our quarterly and annual filings) and including expectations and assumptions regarding demand, supply, product availability, supplier agreements, operations, and availability and cost of labor. Such statements are also subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this press release. Nutrien disclaims any intention or obligation to update or revise any forward-looking statements resulting from new information or future events, except as may be required under applicable securities laws.
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