EX-99.1 2 d71429dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO    News Release

 

NYSE, TSX: NTR

 

August 9, 2021 – all amounts are in US dollars except as otherwise noted

Nutrien Reports Record Earnings

and an Excellent Outlook

SASKATOON, Saskatchewan – Nutrien Ltd. (TSX and NYSE: NTR) announced today its second quarter 2021 results, with net earnings of $1.1 billion ($1.94 diluted earnings per share). Second-quarter adjusted net earnings1 were $2.08 per share and adjusted EBITDA1 was $2.2 billion.

“We delivered record earnings across our global business for the second quarter and first half of 2021 and expect the remainder of the year to contribute to a full year record. We showcased Nutrien’s unique competitive advantages, strong operating performance and the significant leverage to higher fertilizer prices as we focus on our purpose to help growers meet the ever-growing demand for increased food production in a sustainable manner,” commented Mayo Schmidt, Nutrien’s President and CEO.

“The outlook for global crop and fertilizer markets continues to be very strong and we are positioned to benefit from our structural advantages and as a global leader in agriculture. We increased our full year 2021 adjusted EBITDA guidance1 by over $1.5 billion, supported in part by our quick actions to produce an additional one million tonnes of potash, illustrating the power of the Potash team’s unparalleled flexible, reliable, and low-cost six-mine network,” added Mr. Schmidt.

Highlights:

 

 

Nutrien generated record adjusted EBITDA of $3.0 billion and free cash flow1 of $1.9 billion in the first half of 2021. This represents an increase of 36 percent and 40 percent, respectively, compared to the first half of 2020 and 17 percent and 12 percent, respectively higher than the previous record for the company in the first half of 2019.

 

 

Nutrien raised full-year 2021 adjusted EBITDA and adjusted net earnings per share1 guidance to $6.0 to $6.4 billion and $4.60 to $5.10 per share, respectively. This reflects higher expected results across our business, as well as, the benefits of increasing our 2021 potash sales guidance by one million tonnes to address global demand in support of our grower customers around the world. By the fourth quarter of 2021, we expect to surge potash production to an annualized run-rate of approximately 17 million tonnes, due to our flexible mine network and the responsiveness of our dedicated employees.

 

 

Nutrien Ag Solutions (“Retail”) delivered record adjusted EBITDA in the second quarter and first half of 2021. First-half adjusted EBITDA increased 24 percent compared to the same period in 2020 as a result of double-digit growth in revenue and gross margin, higher gross margin percentage and adjusted EBITDA margins surpassing 11 percent. The increase was primarily due to organic growth supported by strong demand for grains and oilseeds, continued growth in our proprietary product sales, optimization and efficiency initiatives, as well as, the ongoing commitment of our approximately 3,600 crop advisors to serve our grower customers.

 

 

Sales through our digitally-enabled retail platform were approximately $1.6 billion in the first half of 2021, nearly double the sales compared to the same period in 2020 and exceeding the full year 2020 results of $1.2 billion in just six months. In the first half of 2021, we processed nearly half-a-million individual grower payments through the digital platform.

 

 

Potash adjusted EBITDA was 48 percent higher in the second quarter and 41 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices and sales volumes. We achieved record production and sales volumes of nearly 7 million tonnes in the first six months of 2021.

 

 

Nitrogen adjusted EBITDA was 45 percent higher in the second quarter and 38 percent higher in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices. Phosphate adjusted EBITDA increased 45 percent in the second quarter and 70 percent in the first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices.

 

 

Subsequent to the second quarter of 2021, Nutrien announced an agreement to purchase Terra Nova, a retail businesses in Brazil with EBITDA margins and acquisition multiples in line with similar transaction metrics for ag retail businesses acquired by Nutrien in the US. We also entered a collaboration agreement with EXMAR NV to jointly develop and build a low-carbon, ammonia-fueled vessel to further reduce maritime transportation emissions.

1 This financial measure including related guidance, if applicable, is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section for further information.


Management’s Discussion and Analysis

The following management’s discussion and analysis (“MD&A”) is the responsibility of management and is dated as of August 9, 2021. The Board of Directors (“Board”) of Nutrien carries out its responsibility for review of this disclosure principally through its audit committee, comprised exclusively of independent directors. The audit committee reviews and, prior to its publication approves this disclosure pursuant to the authority delegated to it by the Board. The term “Nutrien” refers to Nutrien Ltd. and the terms “we”, “us”, “our”, “Nutrien” and “the Company” refer to Nutrien and, as applicable, Nutrien and its direct and indirect subsidiaries on a consolidated basis. Additional information relating to Nutrien (which, except as otherwise noted, is not incorporated by reference herein), including our 2020 Annual Report dated February 18, 2021, which includes our annual audited consolidated financial statements and MD&A, and our Annual Information Form, each for the year ended December 31, 2020, can be found on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. No update is provided to the disclosure in our annual MD&A except for material information since the date of our annual MD&A. The Company is a foreign private issuer under the rules and regulations of the US Securities and Exchange Commission (“SEC”).

This MD&A is based on the Company’s unaudited interim condensed consolidated financial statements as at and for the three and six months ended June 30, 2021 (“interim financial statements”) based on International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” unless otherwise noted. This MD&A contains certain non-IFRS financial measures and forward-looking statements which are described in the “Non-IFRS Financial Measures” and the “Forward-Looking Statements” sections, respectively.

Market Outlook

Agriculture and Retail

 

 

Crop prices continue to be supported by strong global demand and less than expected supply, resulting in historically low global inventory and strong grower margins. We expect these market fundamentals to continue beyond this season and be supportive of crop prices and grower margins into 2022.

 

 

Growing conditions across North America vary with favorable crop conditions in the US South and East regions, and drought conditions in the Western US, US Northern Plains and Canadian Prairies. We expect this variability could impact regional crop protection and plant health product demand in the second half of 2021 as growers experiencing favorable conditions look to boost and protect yields, particularly given additional pest pressure in parts of the US this summer, while growers impacted by drought may reduce some applications. However, with the strong outlook for crop prices and assuming a normal window for fall application, we expect US fertilizer demand and post-harvest crop protection applications to be strong.

 

 

Brazil’s safrinha corn crop production estimates are significantly below initial market expectations due to both drought and frost. However, Brazilian crop prices remain at near-record highs and growers are expected to increase soybean and safrinha corn area when the next growing seasons begin. In Australia, precipitation has supported favorable soil moisture levels, leading to the largest seeded area for winter crops in the country’s history.

Crop Nutrient Markets

 

 

Global potash shipments are projected to reach a record 69 to 71 million tonnes in 2021 while inventory in key regions are expected to be historically low going into 2022. This is supported by strong potash consumption backed by favorable agricultural fundamentals, with further upside limited by global supply issues and most producers operating at peak rates.

 

 

We believe Latin America could reach new records for both potash consumption and imports in 2021, as applications for the last crop were strong and growers are proactively securing volumes for the upcoming season. In North America, increased crop area and normal application rates have supported historically high demand which we expect will continue in the fall.

 

 

Global nitrogen demand growth is expected to be approximately 3 percent in 2021 driven by strong agricultural fundamentals and a rebound in industrial demand. In addition, global supply is tight because of production outages and project delays, which together with higher global energy costs, have supported nitrogen prices.

 

 

Strong global urea prices and robust global import demand led Chinese urea exports to increase by over 40 percent during the first half of 2021 compared to depressed 2020 levels. However, as a result of high Chinese domestic prices and very strong demand, the Chinese government urged producers to prioritize the domestic market, which may limit China’s exports through the second half of 2021. Meanwhile, strong Indian urea demand, lower domestic production and tight inventories have resulted in regular tenders.

 

 

Global phosphate demand remains robust in most key markets, which in combination with higher raw material costs and limited growth in export supply has continued to support phosphate prices. While inventories in India are tight, poor import economics create uncertainty for import demand in the second half of 2021.

 

2


Financial Outlook and Guidance

Based on market factors detailed above, we are raising full-year 2021 adjusted EBITDA guidance to $6.0 to $6.4 billion from $4.4 to $4.9 billion and full-year 2021 adjusted net earnings guidance to $4.60 to $5.10 per share from $2.55 to $3.25 per share.

All guidance numbers, including those noted above are outlined in the tables below. Refer to page 57 of Nutrien’s 2020 Annual Report for related assumptions and sensitivities.

 

2021 Guidance Ranges 1   Low        High     

  Adjusted net earnings per share 2

  $ 4.60     $ 5.10  

  Adjusted EBITDA (billions) 2

  $ 6.0     $ 6.4  

  Retail Adjusted EBITDA (billions)

  $ 1.6     $ 1.7  

  Potash Adjusted EBITDA (billions)

  $ 2.4     $ 2.6  

  Nitrogen Adjusted EBITDA (billions)

  $ 1.85     $ 2.05  

  Phosphate Adjusted EBITDA (millions)

  $ 400     $ 500  

  Potash sales tonnes (millions) 3

    13.5       13.9  

  Nitrogen sales tonnes (millions) 3

    10.8       11.2  

  Depreciation and amortization (billions)

  $ 1.9     $ 2.0  

  Effective tax rate on adjusted earnings

    24     26

  Sustaining capital expenditures (billions) 2

  $ 1.15     $ 1.25  

  1  See the “Forward-Looking Statements” section.

  2  See the “Non-IFRS Financial Measures” section.

  3  Manufactured products only. Nitrogen excludes ESN® and Rainbow products.

Consolidated Results

 

    Three Months Ended June 30     Six Months Ended June 30  

(millions of US dollars)

  2021     2020     % Change     2021     2020     % Change   

Sales 1

    9,763       8,431       16       14,421       12,629       14  

Freight, transportation and distribution

    222       237       (6     433       449       (4

Cost of goods sold

    6,659       6,024       11       9,950       9,125       9  

Gross margin 1

    2,882       2,170       33       4,038       3,055       32  

Expenses 1

    1,263       1,031       23       2,141       1,834       17  

Net earnings

    1,113       765       45       1,246       730       71  

Adjusted EBITDA 2

    2,215       1,721       29       3,021       2,229       36  

Cash provided by operating activities

    1,966       1,756       12       1,814       1,230       47  

Free cash flow (“FCF”) 2

    1,413       1,173       20       1,889       1,354       40  

FCF including changes in non-cash operating working capital 2

    1,662       1,611       3       1,346       922       46  

  1  Certain immaterial figures have been reclassified for the three and six months ended June 30, 2020.

  2  See the “Non-IFRS Financial Measures” section.

Net earnings and adjusted EBITDA increased significantly in the second quarter and first half of 2021 compared to the same periods in 2020 due to higher net realized selling prices, higher potash sales volumes and earnings growth in Nutrien Ag Solutions (“Retail”). Cash flow from operating activities increased in the second quarter and first half of 2021 compared to the same periods last year, which helped generate $1.9 billion in free cash flow in the first half of 2021, an increase of more than $0.5 billion compared to the amount generated in the same period in 2020. The COVID-19 pandemic had a limited impact on our results during the second quarter and first half of 2021.

Segment Results

Our discussion of segment results set out on the following pages is a comparison of the results for the three and six months ended June 30, 2021 to the results for the three and six months ended June 30, 2020, unless otherwise noted.

 

3


 Nutrien Ag Solutions (“Retail”)

 

     Three Months Ended June 30  
  (millions of US dollars, except    Dollars           Gross Margin           Gross Margin (%)  
       as otherwise noted)    2021     2020     % Change           2021     2020     % Change           2021     2020  

Sales

                    

  Crop nutrients

     3,045       2,527       20         703       559       26         23       22  

  Crop protection products

     2,666       2,436       9         587       547       7         22       22  

  Seed

     1,216       1,141       7         237       219       8         19       19  

  Merchandise

     268       253       6         45       45       -         17       18  

  Nutrien Financial 1

     59       40       48         59       40       48         100       100  

  Services and other 1

     335       400       (16       279       250       12         83       63  

  Nutrien Financial elimination 2

     (52     (33     58         (52     (33     58         100       100  
     7,537       6,764       11         1,858       1,627       14         25       24  

Cost of goods sold

     5,679       5,137       11                

Gross margin

     1,858       1,627       14                

Expenses 1,3

     938       826       14                

Earnings before finance

    costs and taxes (“EBIT”)

     920       801       15                

Depreciation and amortization

     169       163       4                

EBITDA

     1,089       964       13                

Adjustments 4

     8       -       n/m                

Adjusted EBITDA

     1,097       964       14                                                          

  1  Certain immaterial figures have been reclassified for the three months ended June 30, 2020.

  2  Represents elimination for the interest and service fees charged by Nutrien Financial to Retail branches.

  3  Includes selling expenses of $863 million (2020 – $764 million).

  4  See Note 2 to the interim financial statements.

 

     Six Months Ended June 30  
  (millions of US dollars, except    Dollars           Gross Margin           Gross Margin (%)  
       as otherwise noted)    2021     2020     % Change           2021     2020     % Change           2021     2020  

Sales

                    

  Crop nutrients

     4,061       3,312       23         923       715       29         23       22  

  Crop protection products

     3,751       3,446       9         763       704       8         20       20  

  Seed

     1,679       1,535       9         306       278       10         18       18  

  Merchandise

     498       469       6         83       79       5         17       17  

  Nutrien Financial 1

     84       56       50         84       56       50         100       100  

  Services and other 1

     508       655       (22       423       384       10         83       59  

  Nutrien Financial elimination

     (72     (48     50         (72     (48     50         100       100  
     10,509       9,425       12         2,510       2,168       16         24       23  

Cost of goods sold

     7,999       7,257       10                

Gross margin

     2,510       2,168       16                

Expenses 1,2

     1,659       1,515       10                

EBIT

     851       653       30                

Depreciation and amortization

     346       318       9                

EBITDA

     1,197       971       23                

Adjustments 3

     9       -       n/m                

Adjusted EBITDA

     1,206       971       24                                                          

  1  Certain immaterial figures have been reclassified for the six months ended June 30, 2020.

  2  Includes selling expenses of $1,530 million (2020 – $1,399 million).

  3  See Note 2 to the interim financial statements.

 

 

Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher sales, gross margin and gross margin percentages. This was supported by expanded planted acreage and strong agricultural market fundamentals in all regions in which we operate, as well as, supply chain improvements and strategic procurement. Our Retail cash operating coverage ratio1 for the first half of 2021 declined to 60 percent.

 

 

Crop nutrients sales increased significantly in the second quarter and first half of 2021 supported by higher prices and record North American and International first half sales volumes. Gross margin benefited from stronger margin per tonne due in part to strategic procurement in a rising price environment.

1 This financial measure is a non-IFRS financial measure. See the “Non-IFRS Financial Measures” section for further information.

 

4


 

Crop protection products sales increased in the second quarter and first half of 2021 due to market growth and favorable application conditions throughout most of the US. Gross margin percentages were stable as strategic procurement and strong proprietary product results more than offset higher costs for certain products caused by global supply chain issues.

 

 

Seed sales increased in the second quarter and first half of 2021, supported by higher seeded acreage in key regions where we operate and strong agriculture fundamentals. Gross margin percentage was stable in the second quarter and first half of 2021.

 

 

Merchandise sales increased in the second quarter and first half of 2021 primarily driven by growth in the Australian market due to higher animal health and management sales related to strong livestock prices. Gross margin was similar in both periods despite the shift in product mix.

 

 

Nutrien Financial sales increased in the second quarter and first half of 2021 due to higher utilization and adoption of our programs.

 

 

Services and other sales decreased due to the divestiture of an Australian livestock export business in the fourth quarter of 2020, which more than offset higher US custom application sales. Despite the change in revenue mix, the impact to gross margin percentage was favorable for both the second quarter and first half of 2021.

 

 Potash

 

    Three Months Ended June 30  
  (millions of US dollars, except   Dollars           Tonnes (thousands)           Average per Tonne  
       as otherwise noted)         2021           2020      % Change                 2021         2020      % Change                 2021           2020      % Change  

Manufactured product

                        

Net sales

                        

North America

    326       232        41       1,172     1,201        (2       278       194        43  

Offshore

    491       356        38       2,449     2,414        1         200       147        36  
        817           588        39       3,621     3,615        -         226       163        39  

Cost of goods sold

    317       310        2                  88       86        2  

Gross margin - total

    500       278        80             138       77        79  

Expenses 1

    123       52        137       Depreciation and amortization

 

            32       30        7  

EBIT

    377       226        67       Gross margin excluding depreciation

 

        

Depreciation and amortization

    116       109        6      

and amortization - manufactured 2

 

            170       107        59  

EBITDA

    493       335        47       Potash cash cost of product

 

        

Adjustments 3

    2       -        n/m      

manufactured 2

 

            59       52        13  

Adjusted EBITDA

    495       335        48                                                 

  1  Includes provincial mining taxes of $107 million (2020 – $46 million).

  2  See the “Non-IFRS Financial Measures” section.

  3  See Note 2 to the interim financial statements.

 

 

 

 

    Six Months Ended June 30  
  (millions of US dollars, except   Dollars           Tonnes (thousands)           Average per Tonne  
       as otherwise noted)         2021           2020      % Change                 2021         2020      % Change                 2021           2020      % Change  

Manufactured product

                        

Net sales

                        

North America

    658       457        44       2,642     2,348        13         249       195        28  

Offshore

    770       648        19       4,136     4,144        -         186       156        19  
        1,428           1,105        29       6,778     6,492        4         211       170        24  

Cost of goods sold

    608       575        6                  90       88        2  

Gross margin - total

    820       530        55             121       82        48  

Expenses 1

    187       115        63       Depreciation and amortization

 

            35       32        9  

EBIT

    633       415        53       Gross margin excluding depreciation

 

        

Depreciation and amortization

    240       205        17      

and amortization - manufactured

 

            156       114        37  

EBITDA

    873       620        41       Potash cash cost of product

 

        

Adjustments 2

    2       -        n/m      

manufactured

 

            58       56        4  

Adjusted EBITDA

    875       620        41                                                 

  1  Includes provincial mining taxes of $165 million (2020 – $103 million).

  2  See Note 2 to the interim financial statements.

 

5


 

Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices and record sales volumes.

 

 

Sales volumes were the highest of any second quarter or first half on record. Demand was strong in both North America and Offshore markets, supported by high crop prices and good affordability, allowing us to leverage our structurally advantaged, flexible, low-cost network of six mines and integrated transportation and logistics system.

 

 

Net realized selling price increased in the second quarter and first half of 2021 due to strong global demand and very tight supply.

 

 

Cost of goods sold per tonne in the second quarter and first half of 2021 was slightly higher compared to the same periods in 2020, primarily due to the stronger Canadian dollar and mine production mix. These factors also led to a higher potash cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Canpotex Sales by Market

 

(percentage of sales volumes, except as

    otherwise noted)

    Three Months Ended June 30             Six Months Ended June 30        
        2021     2020     Change           2021     2020     Change  

Other Asian markets 1

    41       26       15       39       28       11  

Latin America

    35       36       (1     33       31       2  

China

    11       19       (8     12       22       (10

Other markets

    10       7       3       11       7       4  

India

    3       12       (9     5       12       (7
      100       100               100       100          

 1 All Asian markets except China and India.

 

 Nitrogen

 

 

 

 

  Three Months Ended June 30  
(millions of US dollars, except   Dollars    

 

 

 

    Tonnes (thousands)    

 

 

 

    Average per Tonne   
       as otherwise noted)   2021     2020     % Change           2021     2020     % Change           2021     2020     % Change  

Manufactured product

 

                   

Net sales

                     

Ammonia

    346       229       51         836       935       (11       416       244       70  

Urea

    346       273       27         819       1,000       (18             421       273       54  

Solutions, nitrates and

    sulfates

    290       194       49    

 

 

 

    1,311       1,255       4    

 

 

 

    221       154       44  
    982       696       41         2,966       3,190       (7       331       218       52  

Cost of goods sold

    597       508       18    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    201       159       26  

Gross margin - manufactured

    385       188       105                 130       59       120  

Gross margin - other 1

    31       20       55    

 

 

 

     Depreciation and amortization      

 

 

 

 

 

    52       54       (4

Gross margin - total

    416       208       100        

 Gross margin excluding depreciation

       

Expenses (income)

    17       (3     n/m    

 

 

 

   

     and amortization - manufactured

      182       113       61  

EBIT

    399       211       89        

 Ammonia controllable cash cost of

       

Depreciation and amortization

    155       172       (10  

 

 

 

   

     product manufactured 2

      51       40       28  

EBITDA

    554       383       45                  

Adjustments 3

    1       -       n/m    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

    555       383       45      

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

 1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $197 million (2020 – $157 million) less cost of goods sold of $166 million (2020 – $137 million).

 2 See the “Non-IFRS Financial Measures” section.

 3 See Note 2 to the interim financial statements.

 

6


 

 

 

  Six Months Ended June 30  
(millions of US dollars, except   Dollars    

 

 

 

    Tonnes (thousands)    

 

 

 

    Average per Tonne   
       as otherwise noted)   2021     2020     % Change           2021     2020     % Change           2021     2020     % Change  

Manufactured product

 

                   

Net sales

                     

Ammonia

    506       359       41         1,408       1,502       (6       360       239       51  

Urea

    595       510       17         1,576       1,856       (15       377       275       37  

Solutions, nitrates and

    sulfates

    454       357       27    

 

 

 

    2,385       2,360       1    

 

 

 

    190       151       26  
    1,555       1,226       27         5,369       5,718       (6       290       214       36  

Cost of goods sold

    1,037       952       9    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    194       166       17  

Gross margin - manufactured

    518       274       89                 96       48       100  

Gross margin - other 1

    48       31       55               Depreciation and amortization      

 

 

 

 

 

    53       56       (5

Gross margin - total

    566       305       86        

 Gross margin excluding depreciation

       

Expenses

    -       8       (100  

 

 

 

   

     and amortization - manufactured

      149       104       43  

EBIT

    566       297       91        

 Ammonia controllable cash cost of

       

Depreciation and amortization

    284       322       (12  

 

 

 

   

     product manufactured

      51       43       19  

EBITDA

    850       619       37                  

Adjustments 2

    5       -       n/m    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

    855       619       38      

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

1 Includes other nitrogen (including ESN® and Rainbow) and purchased products and is comprised of net sales of $384 million (2020 – $305 million) less cost of goods sold of $336 million (2020 – $274 million).

2 See Note 2 to the interim financial statements.

 

 

Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher natural gas costs, lower equity earnings and lower sales volumes.

 

 

Sales volumes were lower in the second quarter and first half of 2021 due to higher turnaround activities, temporary production outages and lower inventories at the beginning of 2021. Our ammonia operating rate was 87 percent and 92 percent respectively in the second quarter and first half of 2021.

 

 

Net realized selling price of nitrogen in the second quarter and first half of 2021 was higher due to higher benchmark prices resulting from the strength in global agriculture markets and a recovery in industrial nitrogen demand.

 

 

Cost of goods sold per tonne increased during the second quarter and first half of 2021 due to higher natural gas costs, a stronger Canadian dollar and lower nitrogen production. The stronger Canadian dollar combined with lower production volumes led to a higher ammonia controllable cash cost of product manufactured per tonne in the second quarter and first half of 2021.

Natural Gas Prices in Cost of Production

 

    Three Months Ended June 30     Six Months Ended June 30
 (US dollars per MMBtu, except as otherwise noted)   2021     2020     % Change     2021     2020     % Change

 Overall gas cost excluding realized derivative impact

      3.86       2.09       85       3.51       2.16     63

 Realized derivative impact

    0.03       0.06       (50     0.03       0.06     (50)

 Overall gas cost

    3.89       2.15       81       3.54       2.22     59

 Average NYMEX

    2.83       1.72       65       2.76       1.83     51

 Average AECO

    2.32       1.37       69       2.31       1.50     54

 

 

Natural gas prices in our cost of production increased in the second quarter and first half of 2021 as a result of higher North American gas index prices and increased gas costs in Trinidad, which are linked to ammonia benchmark prices.

 

7


 Phosphate

 

 

 

 

  Three Months Ended June 30  
(millions of US dollars, except   Dollars    

 

 

 

    Tonnes (thousands)    

 

 

 

    Average per Tonne   
       as otherwise noted)   2021     2020     % Change           2021     2020     % Change           2021     2020     % Change  

Manufactured product

 

                   

Net sales

                     

Fertilizer

          232             146       59         394       472       (17       588       309       90  

Industrial and feed

    119       104       14    

 

 

 

    192       194       (1  

 

 

 

    621       538       15  
    351       250       40         586       666       (12       598       375       59  

Cost of goods sold

    271       224       21    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    463       335       38  

Gross margin - manufactured

    80       26       208                 135       40       238  

Gross margin - other 1

    4       2       100    

 

 

 

     Depreciation and amortization      

 

 

 

 

 

    60       84       (29

Gross margin - total

    84       28       200        

 Gross margin excluding depreciation

       

Expenses

    7       7       -    

 

 

 

   

     and amortization - manufactured

      195       124       57  

EBIT

    77       21       267                  

Depreciation and amortization

    35       56       (38  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / Adjusted EBITDA

    112       77       45      

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

1 Includes other phosphate and purchased products and is comprised of net sales of $52 million (2020 - $27 million) less cost of goods sold of $48 million (2020 - $25 million).

 

 

 

 

 

  Six Months Ended June 30  
(millions of US dollars, except   Dollars    

 

 

 

    Tonnes (thousands)    

 

 

 

    Average per Tonne   
     as otherwise noted)   2021     2020     % Change           2021     2020     % Change           2021     2020     % Change  

Manufactured product

 

                   

Net sales

                     

Fertilizer

    462       319       45         903       1,040       (13       511       307       66  

Industrial and feed

    233       210       11    

 

 

 

    385       385       -    

 

 

 

    605       546       11  
    695       529       31         1,288       1,425       (10       539       372       45  

Cost of goods sold

    553       511       8    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    429       359       19  

Gross margin - manufactured

    142       18       689                 110       13       746  

Gross margin - other 1

    8       3       167    

 

 

 

     Depreciation and amortization      

 

 

 

 

 

    57       84       (32

Gross margin - total

    150       21       614        

 Gross margin excluding depreciation

       

Expenses

    14       17       (18  

 

 

 

   

     and amortization - manufactured

      167       97       72  

EBIT

    136       4       n/m                  

Depreciation and amortization

    73       119       (39  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA / Adjusted EBITDA

    209       123       70      

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

   

 

 

 

 

 

1 Includes other phosphate and purchased products and is comprised of net sales of $93 million (2020 - $61 million) less cost of goods sold of $85 million (2020 - $58 million).

 

 

Adjusted EBITDA increased in the second quarter and first half of 2021 due to higher net realized selling prices which more than offset higher raw material costs and lower sales volumes.

 

 

Sales volumes were lower in the second quarter and first half of 2021 due to the timing of turnaround activity this year and higher inventory tonnes in 2020 which supported higher sales in the second quarter and first half of 2020.

 

 

Net realized selling price of phosphate fertilizer increased in the second quarter and first half of 2021 as a result of the increase in benchmark fertilizer prices resulting from the strength in global agriculture markets and higher global raw material costs. Industrial and feed prices also increased, but to a lesser extent than fertilizer, due to a lag in price realizations relative to spot prices.

 

 

Cost of goods sold per tonne increased due to significantly higher raw material input costs and a $46 million favorable change in estimate related to an asset retirement obligation recorded in the second quarter of 2020. This was partially offset by lower depreciation and amortization following the non-cash impairment of assets in the third quarter of 2020.

 

8


 Corporate and Others

 

     Three Months Ended June 30      Six Months Ended June 30  

(millions of US dollars, except as otherwise noted)

               2021                 2020         % Change                  2021                  2020              % Change  

Sales 1

     -       20       (100      -        47        (100

Cost of goods sold

     -       18       (100      -        43        (100

Gross margin

     -       2       (100      -        4        (100

Selling expenses

     (9     (8     13        (15      (13      15  

General and administrative expenses

     66       65       2        124            125        (1

Share-based compensation expense (recovery)

     38       12       217        61        (20      n/m  

Other expenses

     83       80       4        111        87        28  

EBIT

     (178     (147     21        (281      (175      61  

Depreciation and amortization

     10       17       (41      22        26        (15

EBITDA

     (168     (130     29        (259      (149      74  

Adjustments 2

     100       65       54        143        18        694  

Adjusted EBITDA

     (68     (65     5        (116      (131      (11

1  Primarily relates to our non-core Canadian business that was sold in 2020.

 

2  See Note 2 to the interim financial statements.

 

 

 

Share-based compensation expense (recovery) – In the second quarter of 2021, the expense was higher as a result of the increase in our share price. We also had a higher number of share-based awards that vested in 2021.

We had an expense in the first half of 2021 due to an increase in our share price, while a recovery was recorded in the first half of 2020 as our share price decreased as a result of market volatility caused by the COVID-19 pandemic.

 

 

Other expenses were higher in the second quarter and first half of 2021 compared to the same periods in 2020 as we recognized additional cloud computing related expenses from our change in accounting policy (refer to Note 3). This was partially offset by lower foreign exchange losses as Canadian and Australian dollars improved relative to the US dollar in the second quarter of 2021.

Finance Costs, Income Tax Expense and

Other Comprehensive Income (Loss)

 

     Three Months Ended June 30      Six Months Ended June 30  

(millions of US dollars, except as otherwise noted)

               2021                  2020          % Change                  2021                  2020              % Change  

Finance costs

     125        139        (10      245        272        (10

Income tax expense

      381         235        62        406        219        85  

Other comprehensive income (loss)

     61        201        (70      85        (157      n/m  

 

 

Finance costs in the second quarter and first half of 2021 were lower due to lower interest rates and a lower short-term debt balance, more than offsetting a higher long-term debt balance resulting from the $1.5 billion in notes issued in the second quarter of 2020.

 

 

Income tax expense in the second quarter and first half of 2021 was higher as a result of higher earnings before income taxes compared to the same periods in 2020.

 

 

Other comprehensive income (loss) is primarily driven by changes in the currency translation of our foreign operations and our investment in Sinofert Holdings Ltd. (“Sinofert”). In 2020, the COVID-19 pandemic resulted in increased market volatility that affected share prices and foreign exchange rates. This resulted in fair value losses on our investment in Sinofert as well as a significant translation gain in the second quarter of 2020 and a significant translation loss in the first quarter of 2020. In the first half of 2021, Sinofert share price increased while the Canadian and Australian dollars relative to the US dollar were less volatile.

 

9


Liquidity and Capital Resources

Sources and Uses of Liquidity

We continued to manage our capital in accordance with our capital allocation strategy. We believe that our internally generated cash flow, supplemented by available borrowings under our existing financing sources, if necessary, will be sufficient to meet our anticipated capital expenditures and other cash requirements for the foreseeable future. Refer to the “Capital Structure and Management” section for details on our existing long-term debt and credit facilities.

Sources and Uses of Cash

 

    Three Months Ended June 30     Six Months Ended June 30  

(millions of US dollars, except as otherwise noted)

              2021                 2020         % Change                 2021                 2020         % Change  

Cash provided by operating activities

    1,966       1,756       12       1,814       1,230       47  

Cash used in investing activities

    (431     (408     6       (819     (853     (4

Cash (used in) provided by financing activities

    (449     (3,139     (86     (640     380       n/m  

Effect of exchange rate changes on cash and cash equivalents

    (4     24       n/m       (15     (13     15  

Increase (decrease) in cash and cash equivalents

    1,082       (1,767     n/m       340       744       (54

 

   

Cash provided by operating activities

  

 Higher cash provided by operating activities in the second quarter and first half of 2021 compared to the same periods in 2020 was primarily due to strong global crop and fertilizer markets, which resulted in higher earnings, combined with improvements to working capital management, the most significant of which was an increase in payables and accrued charges related to a shift in timing of supplier payments.

   

Cash used in investing activities

  

 Higher cash used in investing activities in the second quarter was primarily due to higher additions to our property, plant and equipment from higher turnaround activities compared to the same period in 2020.

 

 Lower cash used in investing activities for the first half of 2021 was primarily due to lower acquisitions compared to the same period in 2020.

Cash (used in)

provided by

financing activities

  

 Lower cash used in financing activities for the second quarter of 2021 compared to the second quarter of 2020 was due to minimal debt repayments in 2021. In 2020, as we managed our liquidity needs during the initial period of the COVID-19 pandemic, we repaid $4.3 billion of short-term debt and issued $1.5 billion of notes.

 

 Cash used in financing activities for the first half of 2021 compared to cash provided by financing activities in the first half of 2020 was primarily due to the issuance of $1.5 billion of notes and a note repayment of $500 million in the first half of 2020. We did not issue or repay notes in the first half of 2021.

Financial Condition Review

The following balance sheet categories contained variances that were considered significant:

 

     As at                

(millions of US dollars, except as otherwise noted)

     June 30, 2021        December 31, 2020      $  Change        % Change  

Assets

           

Cash and cash equivalents

     1,794        1,454        340        23  

Receivables

     6,683        3,626        3,057        84  

Prepaid expenses and other current assets

     524        1,460        (936      (64

Other assets

     664        914        (250      (27

Liabilities and Equity

           

Payables and accrued charges

     9,367        8,058        1,309        16  

Retained earnings

     7,315        6,606        709        11  

 

 

Explanations for changes in Cash and cash equivalents are in the “Sources and Uses of Cash” section.

 

 

Receivables increased due to higher sales across all of our segments. This was a result of increased crop nutrient net realized selling prices and demand for crop inputs, as well as higher Retail vendor rebates receivables. Certain income tax receivables previously classified as non-current are currently realizable within one year.

 

10


 

Prepaid expenses and other current assets decreased due to Retail taking delivery of prepaid inventory (primarily seed and crop protection) during the spring planting and application seasons.

 

 

Other assets decreased due to a reclassification of certain income tax receivables as current receivables, which will be realized within one year.

 

 

Payables and accrued charges increased due to a shift in timing of supplier payments and higher inventory purchases to meet strong seasonal demand, which were partially offset by lower customer prepayments in North America as Retail customers took delivery of prepaid sales.

 

 

Retained earnings increased as net earnings in the first half of 2021 exceeded dividends declared.

Capital Structure and Management

Principal Debt Instruments

As part of the normal course of business, we closely monitor our liquidity position. We use a combination of cash generated from operations and short-term and long-term debt to finance our operations. We were in compliance with our debt covenants and did not have any changes to our credit ratings in the six months ended June 30, 2021.

 

 

 

 

     As at June 30, 2021  
                         Outstanding and Committed          
  (millions of US dollars)      Rate of Interest (%)        Total Facility Limit        Short-term debt        Long-term debt   

Credit facilities

                   

Unsecured revolving term credit facility

       n/a          4,500          -           

Uncommitted revolving demand facility

       n/a          500          -           

Other credit facilities 1

       0.9 - 7.5          630          115          73   

Other

       n/a         

 

 

 

 

 

       95           

Total

      

 

 

 

 

 

      

 

 

 

 

 

       210          73   

1  Other credit facilities are unsecured and consist of South American facilities with debt of $167 million and interest rates ranging from 1.5 percent to 7.5 percent and other facilities with debt of $21 million and interest rates ranging from 0.9 percent to 4.1 percent.

We also have a commercial paper program, which is limited to the availability of backup funds under the $4,500 million unsecured revolving term credit facility and excess cash invested in highly liquid securities. There is no outstanding balance as of June 30, 2021.

We extended the maturity date of the unsecured revolving term credit facility from 2023 to 2026 in the three months ended June 30, 2021. There was no change to the total facility limit or the significant agreement terms from those we disclosed in our 2020 Annual Report.

Our long-term debt consists primarily of notes. See the “Capital Structure and Management” section of our 2020 Annual Report for information on balances, rates and maturities for our notes.

Outstanding Share Data

 

 

 

 

 

   As at August 6, 2021  

Common shares

     570,688,867  

Options to purchase common shares

     9,877,776  

For more information on our capital structure and management, see Note 24 to our 2020 financial statements.

 

11


Quarterly Results

 

  (millions of US dollars, except as otherwise noted)   Q2 2021     Q1 2021     Q4 2020     Q3 2020     Q2 2020     Q1 2020     Q4 2019     Q3 2019  

Sales 1

    9,763       4,658       4,052       4,227       8,431       4,198       3,462       4,185  

Net earnings (loss) attributable to equity holders of Nutrien

    1,108       127       316       (587     765       (35     (48     141  

Adjusted EBITDA

    2,215       806       768       670       1,721       508       664       787  

Net earnings (loss) per share attributable to equity holders of Nutrien

               

Basic

    1.94       0.22       0.55       (1.03     1.34       (0.06     (0.08     0.25  

Diluted

    1.94       0.22       0.55       (1.03     1.34       (0.06     (0.08     0.24  

1  Certain immaterial figures have been reclassified in the first three quarters of 2020.

 

Seasonality in our business results from increased demand for products during the planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments made to us are concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

In the third quarter of 2020, earnings were impacted by an $824 million non-cash impairment of assets primarily in the Phosphate segment as a result of lower forecasted global phosphate prices. In the fourth quarter of 2020, earnings were impacted by a $250 million net gain on disposal of our investment in Misr Fertilizers Production Company S.A.E. (“MOPCO”).

Critical Accounting Estimates

Our significant accounting policies are disclosed in our 2020 Annual Report. We have discussed the development, selection and application of our key accounting policies, and the critical accounting estimates and assumptions they involve, with the audit committee of the Board. Our critical accounting estimates are discussed on page 53 of our 2020 Annual Report. There were no significant changes in the six months ended June 30, 2021 to our critical accounting estimates.

Controls and Procedures

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, and National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

There has been no change in our internal control over financial reporting during the three months ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

Certain statements and other information included in this document, including within the “Financial Outlook and Guidance” section, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) under applicable securities laws (such statements are often accompanied by words such as “anticipate”, “forecast”, “expect”, “believe”, “may”, “will”, “should”, “estimate”, “intend” or other similar words). All statements in this document, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to: Nutrien’s business strategies, plans, prospects and opportunities; Nutrien’s full-year guidance, including expectations regarding our adjusted net earnings per share and adjusted EBITDA (consolidated and by segment); expectations regarding our growth and capital allocation intentions and strategies; capital spending expectations for 2021; expectations regarding performance of our operating segments in 2021, including our operating segment market outlooks and market conditions for 2021, and the anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, crop mix, prices and the impact of import and export volumes; Nutrien’s ability to develop innovative and sustainable solutions; the negotiation of sales contracts; and acquisitions and divestitures. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements.

 

12


All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although we believe that these assumptions are reasonable, having regard to our experience and our perception of historical trends, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty. The additional key assumptions that have been made include, among other things, assumptions with respect to our ability to successfully complete, integrate and realize the anticipated benefits of our already completed and future acquisitions and divestitures, and that we will be able to implement our standards, controls, procedures and policies in respect of any acquired businesses and to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by us, including with respect to prices, margins, demand, supply, product availability, supplier agreements, availability and cost of labor and interest, exchange and effective tax rates; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2021 and in the future; our expectations regarding the impacts, direct and indirect, of the COVID-19 pandemic on our business, customers, business partners, employees, supply chain, other stakeholders and the overall economy; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and divestitures and negotiate acceptable terms; our ability to maintain investment grade ratings and achieve our performance targets; our ability to successfully negotiate sales contracts; and our ability to successfully implement new initiatives and programs.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general global economic, market and business conditions; failure to complete announced and future acquisitions or divestitures at all or on the expected terms and within the expected timeline; climate change and weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy (including tariffs, trade restrictions and climate change initiatives), government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; political risks, including civil unrest, actions by armed groups or conflict and malicious acts including terrorism; the occurrence of a major environmental or safety incident; innovation and cybersecurity risks related to our systems, including our costs of addressing or mitigating such risks; counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; interruptions of or constraints in availability of key inputs, including natural gas and sulfur; any significant impairment of the carrying amount of certain assets; risks related to reputational loss; certain complications that may arise in our mining processes; the ability to attract, engage and retain skilled employees and strikes or other forms of work stoppages; the COVID-19 pandemic, including variants of the COVID-19 virus and the efficiency and distribution of vaccines, and its resulting effects on economic conditions, restrictions imposed by public health authorities or governments, fiscal and monetary responses by governments and financial institutions and disruptions to global supply chains; and other risk factors detailed from time to time in Nutrien reports filed with the Canadian securities regulators and the SEC in the United States.

The purpose of our expected adjusted net earnings per share, adjusted EBITDA (consolidated and by segment) and sustaining capital expenditures guidance ranges, are to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

The forward-looking statements in this document are made as of the date hereof and Nutrien disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable Canadian securities legislation or applicable US federal securities laws.

Terms and Definitions

For the definitions of certain financial and non-financial terms used in this document, as well as a list of abbreviated company names and sources, see the “Terms and Definitions” section of our 2020 Annual Report. All references to per share amounts pertain to diluted net earnings (loss) per share, “n/m” indicates information that is not meaningful and all financial amounts are stated in millions of US dollars, unless otherwise noted.

 

13


About Nutrien

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 approximately 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.

For Further Information:

Investor Relations:

Richard Downey

Vice President, Investor Relations

(403) 225-7357

Investors@nutrien.com

Tim Mizuno

Director, Investor Relations

(306) 933-8548

Media Relations:

Megan Fielding

Vice President, Brand & Culture Communications

(403) 797-3015

Contact us at: www.nutrien.com

Selected financial data for download can be found in our data tool at www.nutrien.com/investors/interactive-datatool

Such data is not incorporated by reference herein.

 

 

Nutrien will host a Conference Call on Tuesday, August 10, 2021 at 10:00 am Eastern Time.

 

 

In order to expedite access to our conference call, each participant will be required to pre-register for the event:

   

Online: http://www.directeventreg.com/registration/event/3792844.

   

Via Phone: 1-888-869-1189 Conference ID 3792844.

 

Once the registration is complete, a confirmation will be sent providing the dial in number and both the Direct Event Passcode and your unique Registrant ID to join this call. For security reasons, please do not share your information with anyone else.

 

Live Audio Webcast: Visit http://www.nutrien.com/investors/events/2021-q2-earnings-conference-call

 

14


Appendix A - Selected Additional Financial Data

 

Selected Retail measures        Three Months Ended June 30                  Six Months Ended June 30          

 

   2021      2020      2021      2020  

Proprietary products margin as a percentage of

product line margin (%)

           

Crop nutrients

     24        24        23        26  

Crop protection products

     43        42        42        42  

Seed

     46        47        43        44  

All products

     29        29        27        28  

Crop nutrients sales volumes (tonnes - thousands)

           

North America

     5,020        5,098        6,617        6,524  

International

     1,132        1,024        1,935        1,623  

Total

     6,152        6,122        8,552        8,147  

Crop nutrients selling price per tonne

           

North America

     506        427        494        425  

International

     445        340        408        332  

Total

     495        413        475        406  

Crop nutrients gross margin per tonne

           

North America

     127        101        123        100  

International

     57        42        54        40  

Total

     114        91        108        88  
Financial performance measures                            2021  

Retail adjusted EBITDA to sales (“Retail adjusted EBITDA margin”) (%) 1

 

        10  

Retail adjusted average working capital to sales (%) 1, 2

              12  

Retail adjusted average working capital to sales excluding Nutrien Financial (%) 1, 2

 

        -  

Retail cash operating coverage ratio (%) 1, 2

              60  

Retail normalized comparable store sales (%) 2

              1  

Retail adjusted EBITDA per US selling location (thousands of US dollars) 1, 2

 

        1,267  

Nutrien Financial net interest margin (%) 1, 2

 

                       6.2  

  1  Rolling four quarters ended June 30, 2021.

  2  See the “Non-IFRS Financial Measures” section.

 

Nutrien Financial    As at June 30, 2021  
(millions of US dollars)    Current     

<31 days

past due

    

31-90 days

past due

    

>90 days

past due

     Gross
Receivables
     Allowance 1      Total  

North America

     2,530        152        56        48        2,786        (31      2,755  

International

     230        12        14        63        319        (2      317  

Nutrien Financial receivables

     2,760        164        70        111        3,105        (33      3,072  

  1  Bad debt expense on the above receivables for the three months ended June 30, 2021 was $11 million (2020 - $12 million) in the Retail segment.

 

15


Selected Nitrogen measures    Three Months Ended June 30          Six Months Ended June 30      
       2021        2020        2021        2020  

Sales volumes (tonnes - thousands)

           

Fertilizer

     1,825        2,173        3,130        3,584  

Industrial and feed

     1,141        1,017        2,239        2,134  

Net sales (millions of US dollars)

           

Fertilizer

     638        510        970        828  

Industrial and feed

     344        186        585        398  

Net selling price per tonne

           

Fertilizer

     350        235        310        231  

Industrial and feed

     302        182        261        186  
Production measures    Three Months Ended June 30          Six Months Ended June 30      
       2021        2020        2021        2020  

Potash production (Product tonnes - thousands)

     3,414        3,346        6,950        6,381  

Potash shutdown weeks 1

     4        22        4        34  

Ammonia production - total 2

     1,492        1,619        2,941        3,066  

Ammonia production - adjusted 2, 3

     954        1,067        2,007        2,058  

Ammonia operating rate (%) 3

     87        97        92        94  

P2O5 production (P2O5 tonnes - thousands)

     347        357        725        729  

P2O5 operating rate (%)

     82        84        86        86  

1  Represents weeks of full production shutdown, excluding the impact of any periods of reduced operating rates and planned routine annual maintenance shutdowns and announced workforce reductions.

 

2  All figures are provided on a gross production basis in thousands of product tonnes.

 

3  Excludes Trinidad and Joffre.

 

 

16


Appendix B - Non-IFRS Financial Measures

We use both IFRS and certain non-IFRS financial measures to assess performance. Non-IFRS financial measures are numerical measures of a company’s historical or future financial performance, financial position or cash flow that are not specified, defined or determined under IFRS, and are not presented in our interim financial statements. Non-IFRS measures either exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure specified, defined or determined under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

Management believes the non-IFRS financial measures provide transparent and useful supplemental information to help investors evaluate our financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.

The following section outlines our non-IFRS financial measures, their definitions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, our non-IFRS financial measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. As non-recurring or unusual items arise, we generally exclude these items in our calculation of the applicable non-IFRS financial measure.

Adjusted EBITDA (Consolidated)

Most directly comparable IFRS financial measure: Net earnings (loss).

Definition: Adjusted EBITDA is calculated as net earnings (loss) before finance costs, income taxes, depreciation and amortization, certain integration and restructuring related costs, share-based compensation, impairment of assets, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, cloud computing transition adjustment, loss on disposal of business, and net gain on disposal of investment in MOPCO. COVID-19 related expenses primarily consist of increased cleaning and sanitization costs, the purchase of personal protective equipment, discretionary supplemental employee costs and costs related to construction delays from access limitations and other government restrictions. Cloud computing transition adjustment relates to cloud computing costs in prior years that no longer qualify for capitalization based on an agenda decision issued by the IFRS Interpretations Committee in April 2021. In 2021, we amended our calculation of adjusted EBITDA to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

Why we use the measure and why it is useful to investors: It is not impacted by long-term investment and financing decisions, but rather focuses on the performance of our day-to-day operations. It provides a measure of our ability to service debt and to meet other payment obligations.

 

     Three Months Ended June 30      Six Months Ended June 30  

 (millions of US dollars)

     2021        2020        2021        2020  

 Net earnings

     1,113        765        1,246        730  

 Finance costs

     125        139        245        272  

 Income tax expense

     381        235        406        219  

 Depreciation and amortization

     485        517        965        990  

 EBITDA

     2,104        1,656        2,862        2,211  

 Integration and restructuring related costs

     29        18        39        28  

 Share-based compensation expense (recovery)

     38        12        61        (20

 Impairment of assets

     1        -        5        -  

 COVID-19 related expenses

     9        17        18        19  

 Foreign exchange (gain) loss, net of related derivatives

     (2      18        -        (9

 Cloud computing transition adjustment

     36        -        36        -  

 Adjusted EBITDA

     2,215        1,721        3,021        2,229  

 

17


Adjusted EBITDA (Consolidated), Adjusted Net Earnings Per Share and Sustaining Capital Expenditures Guidance

Adjusted EBITDA, adjusted net earnings per share and sustaining capital expenditures guidance are forward-looking non-IFRS financial measures. We do not provide a reconciliation of such forward-looking measures to the most directly comparable financial measures calculated and presented in accordance with IFRS due to unknown variables and the uncertainty related to future results. These unknown variables may include unpredictable transactions of significant value that may be inherently difficult to determine, without unreasonable efforts. Guidance for adjusted EBITDA and adjusted net earnings per share excludes the impacts of integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses, and cloud computing transition adjustment. Guidance for sustaining capital expenditures includes expected expenditures required to sustain operations at existing levels and includes major repairs and maintenance and plant turnarounds.

Adjusted Net Earnings and Adjusted Net Earnings Per Share

Most directly comparable IFRS financial measure: Net earnings (loss) and net earnings (loss) per share.

Definition: Net earnings (loss) before certain integration and restructuring related costs, share-based compensation, certain foreign exchange gain/loss (net of related derivatives), COVID-19 related expenses (including those recorded under finance costs for managing our liquidity position in response to the COVID-19 pandemic in 2020), cloud computing transition adjustment, loss on disposal of business, net gain on disposal of investment in MOPCO and impairment of assets, net of tax. We generally apply the annual forecasted effective tax rate to our adjustments during the year and, at year-end, we apply the actual effective tax rate. If the effective tax rate is significantly different from our forecasted effective tax rate due to adjustments or discrete tax impacts, we apply a tax rate that excludes those items. For material adjustments, we apply a tax rate specific to the adjustment. In 2021, we amended our calculation of adjusted net earnings to adjust for the impact of restructuring and related costs and cloud computing transition adjustment. There were no similar expenses in the comparative period.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations excluding the effects of non-operating items.

 

    

Three Months Ended

June 30, 2021

    

Six Months Ended

June 30, 2021

 

 (millions of US dollars, except as otherwise noted)

    

Increases

(Decreases)

 

 

    Post-Tax       

Per
Diluted
Share
 
 
 
    

Increases

(Decreases)

 

 

     Post-Tax       

Per
Diluted
Share
 
 
 

 Net earnings attributable to equity holders of

 Nutrien

       1,108        1.94           1,235        2.16  

 Adjustments:

                

Integration and restructuring related costs

     29       22        0.03        39        30        0.05  

Share-based compensation expense

     38       29        0.05        61        46        0.08  

Impairment of assets

     1       1        -        5        4        0.01  

COVID-19 related expenses

     9       7        0.01        18        14        0.02  

Foreign exchange gain, net of

    related derivatives

     (2     (2      -        -        -        -  

Cloud computing transition adjustment

     36       27        0.05        36        27        0.05  

 Adjusted net earnings

             1,192        2.08                 1,356        2.37  

Free Cash Flow and Free Cash Flow Including Changes in Non-Cash Operating Working Capital

Most directly comparable IFRS financial measure: Cash from operations before working capital changes.

Definition: Cash from operations before working capital changes less sustaining capital expenditures. We also calculate a similar measure that includes changes in non-cash operating working capital.

Why we use the measure and why it is useful to investors: For evaluation of liquidity and financial strength. These are also useful as indicators of our ability to service debt, meet other payment obligations and make strategic investments. These do not represent residual cash flow available for discretionary expenditures.

 

18


     Three Months Ended June 30     Six Months Ended June 30  

 (millions of US dollars)

     2021        2020       2021       2020  

 Cash from operations before working capital changes

     1,717        1,318       2,357       1,662  

 Sustaining capital expenditures

     (304      (145     (468     (308

 Free cash flow

     1,413        1,173       1,889       1,354  

 Changes in non-cash operating working capital

     249        438       (543     (432

 Free cash flow including changes in non-cash
operating working capital

     1,662        1,611       1,346       922  

Potash Cash Cost of Product Manufactured (“COPM”)

Most directly comparable IFRS financial measure: Cost of goods sold (“COGS”) for the Potash segment.

Definition: Potash COGS for the period excluding depreciation and amortization expense and inventory and other adjustments divided by the production tonnes for the period.

Why we use the measure and why it is useful to investors: To assess operational performance. Potash cash COPM excludes the effects of production from other periods and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

 

     Three Months Ended June 30     Six Months Ended June 30  
 (millions of US dollars, except as otherwise noted)      2021        2020       2021       2020  
 Total COGS - Potash      317        310       608       575  
 Change in inventory      (11      (40     16       (32
 Other adjustments      (2      (3     (6     (5
 COPM      304        267       618       538  
 Depreciation and amortization included in COPM      (103      (92     (214     (181
 Cash COPM      201        175       404       357  
 Production tonnes (tonnes - thousands)      3,414        3,346       6,950       6,381  

 Potash cash COPM per tonne

     59        52       58       56  

Ammonia Controllable Cash COPM

Most directly comparable IFRS financial measure: COGS for the Nitrogen segment.

Definition: The total of COGS for the Nitrogen segment excluding depreciation and amortization expense included in COGS, cash COGS for products other than ammonia, other adjustments, and natural gas and steam costs, divided by net ammonia production tonnes.

Why we use the measure and why it is useful to investors: To assess operational performance. Ammonia controllable cash COPM excludes the effects of production from other periods, the costs of natural gas and steam, and long-term investment decisions, supporting a focus on the performance of our day-to-day operations.

 

     Three Months Ended June 30     Six Months Ended June 30  

 (millions of US dollars, except as otherwise noted)

     2021        2020       2021       2020  

 Total COGS - Nitrogen

     763        645       1,373       1,226  

 Depreciation and amortization in COGS

     (134      (152     (242     (282

 Cash COGS for products other than ammonia

     (448      (369     (841     (730

 Ammonia

         

Total cash COGS before other adjustments

     181        124       290       214  

Other adjustments 1

     (27      (46     (30     (35

Total cash COPM

     154        78       260       179  

Natural gas and steam costs

     (118      (53     (192     (119

Controllable cash COPM    

     36        25       68       60  

 Production tonnes (net tonnes 2 - thousands)

     703        644       1,305       1,388  

 Ammonia controllable cash COPM per tonne

     51        40       51       43  

 1  Includes changes in inventory balances and other adjustments.

 

 2  Ammonia tonnes available for sale, as not upgraded to other Nitrogen products.

 

 

19


Gross Margin Excluding Depreciation and Amortization Per Tonne - Manufactured

Most directly comparable IFRS financial measure: Gross margin.

Definition: Gross margin from manufactured products per tonne less depreciation and amortization per tonne. Reconciliations are provided in the “Segment Results” section.

Why we use the measure and why it is useful to investors: Focuses on the performance of our day-to-day operations, which excludes the effects of items that primarily reflect the impact of long-term investment and financing decisions.

Retail Adjusted Average Working Capital to Sales and Retail Adjusted Average Working Capital to Sales Excluding Nutrien Financial

Most directly comparable IFRS financial measure: (Current assets minus current liabilities for Retail) divided by Retail sales.

Definition: Retail adjusted average working capital divided by Retail adjusted sales for the last four rolling quarters. We exclude in our calculations the working capital and sales of certain acquisitions (such as Ruralco) during the first year following the acquisition. We amended our calculation to adjust for the sales of certain recently acquired businesses. We also look at this metric excluding the sales and working capital of Nutrien Financial.

Why we use the measure and why it is useful to investors: To evaluate operational efficiency. A lower or higher percentage represents increased or decreased efficiency, respectively. The metric excluding Nutrien Financial shows the impact that the working capital of Nutrien Financial has on the ratio.

 

    Rolling four quarters ended June 30, 2021  
 (millions of US dollars, except as otherwise noted)   Q3 2020     Q4 2020     Q1 2021     Q2 2021     Average/Total    

 Working capital

    3,216       1,157       1,630       1,348    

 Working capital from certain recent acquisitions

    -       -       -       -          

 Adjusted working capital

    3,216       1,157       1,630       1,348       1,838    

 Nutrien Financial working capital

    (1,711     (1,392     (1,221     (3,072        

 Adjusted working capital excluding Nutrien Financial

    1,505       (235     409       (1,724     (11)   

 Sales 1

    2,742       2,618       2,972       7,537    

 Sales from certain recent acquisitions

    -       -       -       -          

 Adjusted sales

    2,742       2,618       2,972       7,537       15,869    

 Nutrien Financial revenue 1

    (36     (37     (25     (59        

 Adjusted sales excluding Nutrien Financial

    2,706       2,581       2,947       7,478       15,712    
 1  Certain immaterial figures have been reclassified for the third quarter of 2020.

 

Adjusted average working capital to sales (%)

            12    

Adjusted average working capital to sales excluding Nutrien Financial (%)

 

      -    

Nutrien Financial Net Interest Margin

Most directly comparable IFRS financial measure: Nutrien Financial gross margin divided by average Nutrien Financial receivables.

Definition: Nutrien Financial revenue less deemed interest expense divided by average Nutrien Financial receivables outstanding for the last four rolling quarters.

Why we use the measure and why it is useful to investors: Used by credit rating agencies and other users to evaluate financial performance of Nutrien Financial.

 

20


    Rolling four quarters ended June 30, 2021  
  (millions of US dollars, except as otherwise noted)   Q3 2020     Q4 2020     Q1 2021     Q2 2021     Total/Average    

  Nutrien Financial revenue

    36       37       25       59    

  Deemed interest expense 1

    (15     (14     (6     (8        

  Net interest

    21       23       19       51       114    

  Average Nutrien Financial receivables

    1,711       1,392       1,221       3,072       1,849    

  Nutrien Financial net interest margin (%)

                                    6.2    

  1   Average borrowing rate applied to the notional debt required to fund the portfolio of receivables from customers monitored and serviced by Nutrien Financial.

Retail Cash Operating Coverage Ratio

Most directly comparable IFRS financial measure: Retail operating expenses as a percentage of Retail gross margin.

Definition: Retail operating expenses, excluding depreciation and amortization expense, divided by Retail gross margin excluding depreciation and amortization expense in cost of goods sold, for the last four rolling quarters.

Why we use the measure and why it is useful to investors: To understand the costs and underlying economics of our Retail operations and to assess our Retail operating performance and ability to generate free cash flow.

 

    Rolling four quarters ended June 30, 2021  
 (millions of US dollars, except as otherwise noted)   Q3 2020     Q4 2020     Q1 2021     Q2 2021                   Total    

 Operating expenses 1, 2

    691       768       721       938       3,118    

 Depreciation and amortization in operating expenses

    (167     (177     (175     (166     (685)   

 Operating expenses excluding depreciation and amortization

    524       591       546       772       2,433    

 Gross margin 2

    683       885       652       1,858       4,078    

 Depreciation and amortization in cost of goods sold

    3       3       2       3       11    

 Gross margin excluding depreciation and amortization

    686       888       654       1,861       4,089    

 Cash operating coverage ratio (%)

                                    60    
 1   Includes Retail expenses below gross margin including selling expenses, general and administrative expenses and other (income) expenses.

 

 2   Certain immaterial figures have been reclassified for the third quarter of 2020.

 

Retail Adjusted EBITDA per US Selling Location

Most directly comparable IFRS financial measure: Retail US adjusted EBITDA.

Definition: Total Retail US adjusted EBITDA for the last four rolling quarters, adjusted for acquisitions in those quarters, divided by the number of US locations that have generated sales in the last four rolling quarters, adjusted for acquired locations.

Why we use the measure and why it is useful to investors: To assess our US Retail operating performance. This measure includes locations we have owned for more than 12 months.

 

     Rolling four quarters ended June 30, 2021  
 (millions of US dollars, except as otherwise noted)    Q3 2020      Q4 2020      Q1 2021      Q2 2021                    Total    

 Adjusted US EBITDA

     86        177        29        847        1,139    

 Adjustments for acquisitions

                                         (5)   

 Adjusted US EBITDA adjusted for acquisitions

                 1,134    

 Number of US selling locations adjusted for acquisitions

                                         895    

 Adjusted EBITDA per US selling location (thousands of US dollars)

 

                                1,267    

 

21


Retail Normalized Comparable Store Sales

Most directly comparable IFRS financial measure: Retail sales from comparable base as a component of total Retail sales.

Definition: Prior year comparable store sales adjusted for published potash, nitrogen and phosphate benchmark prices and foreign exchange rates used in the current year. We retain sales of closed locations in the comparable base if the closed location is in close proximity to an existing location, unless we plan to exit the market area or are unable to economically or logistically serve it. We do not adjust for temporary closures, expansions or renovations of stores.

Why we use the measure and why it is useful to investors: To evaluate sales growth by adjusting for fluctuations in commodity prices and foreign exchange rates. Includes locations we have owned for more than 12 months.

 

     Six Months Ended June 30  

  (millions of US dollars, except as otherwise noted)

     2021        2020  

  Sales from comparable base

     

Current period

     10,405        8,602  

Prior period 1

     9,425        8,551  

  Comparable store sales (%)

     10        1  

  Prior period normalized for benchmark prices and foreign exchange rates 1

     10,351        8,104  

  Normalized comparable store sales (%)

     1        6  

  1 Certain immaterial figures have been reclassified in 2020.

 

 

22


Unaudited   In millions of US dollars except as otherwise noted  

 

Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Earnings

 

                             

Three Months Ended

June 30

    

Six Months Ended

June 30

 
     Note                          2021        2020        2021       2020  
                                     Note 1            Note 1  

 SALES

   2                9,763        8,431        14,421       12,629  

 Freight, transportation and distribution

                  222        237        433       449  

 Cost of goods sold

                              6,659        6,024        9,950       9,125  

 GROSS MARGIN

                  2,882        2,170        4,038       3,055  

 Selling expenses

                  865        763        1,538       1,405  

 General and administrative expenses

                  116        101        219       205  

 Provincial mining taxes

                  107        48        165       105  

 Share-based compensation expense (recovery)

                  38        12        61       (20

 Other expenses

   3                          137        107        158       139  

 EARNINGS BEFORE FINANCE COSTS AND INCOME TAXES

             1,619        1,139        1,897       1,221  

 Finance costs

                              125        139        245       272  

 EARNINGS BEFORE INCOME TAXES

                  1,494        1,000        1,652       949  

 Income tax expense

   4                          381        235        406       219  

 NET EARNINGS

                              1,113        765        1,246       730  

 Attributable to

                       

 Equity holders of Nutrien

                  1,108        765        1,235       730  

 Non-controlling interest

                              5        -        11       -  

 NET EARNINGS

                              1,113        765        1,246       730  

 NET EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF NUTRIEN (“EPS”)

 

                

Basic

                  1.94        1.34        2.17       1.28  

Diluted

                              1.94        1.34        2.16       1.28  

 Weighted average shares outstanding for basic EPS

                  570,352,000        569,146,000        570,007,000       570,157,000  

 Weighted average shares outstanding for diluted EPS

                         571,972,000        569,146,000        571,453,000       570,157,000  

 

Condensed Consolidated Statements of Comprehensive Income

 

 

                             

Three Months Ended

June 30

    

Six Months Ended

June 30

 

 (Net of related income taxes)

                              2021        2020        2021       2020  

 NET EARNINGS

                  1,113        765        1,246       730  

 Other comprehensive income (loss)

                       

 Items that will not be reclassified to net earnings:

                       

 Net actuarial gain on defined benefit plans

                  -        -        -       3  

 Net fair value gain (loss) on investments

                  22        (2      70       (21

 Items that have been or may be subsequently reclassified to

net earnings:

                       

 Gain (loss) on currency translation of foreign operations

                  25        194        (5     (121

 Other

                              14        9        20       (18

 OTHER COMPREHENSIVE INCOME (LOSS)

                              61        201        85       (157

 COMPREHENSIVE INCOME

                              1,174        966        1,331       573  

 Attributable to

                       

 Equity holders of Nutrien

                  1,170        966        1,321       573  

 Non-controlling interest

                              4        -        10       -  

 COMPREHENSIVE INCOME

                              1,174        966        1,331       573  

 (See Notes to the Condensed Consolidated Financial Statements)

 

    

 

23


Unaudited   In millions of US dollars except as otherwise noted  

 

Condensed Consolidated Statements of Cash Flows

 

            
Three Months Ended
June 30
 
 
    
Six Months Ended
June 30
 
 
      Note                                2021       2020        2021       2020  

  OPERATING ACTIVITIES

                 

  Net earnings

             1,113       765        1,246       730  

  Adjustments for:

                 

  Depreciation and amortization

             485       517        965       990  

  Share-based compensation expense (recovery)

             38       12        61       (20

  Impairment of assets

             1       -        5       -  

  (Recovery of) provision for deferred income tax

             (20     84        (10     62  

  Cloud computing transition adjustment

    3                    36       -        36       -  

  Other long-term assets, liabilities and miscellaneous

                                     64       (60      54       (100

  Cash from operations before working capital changes

             1,717       1,318        2,357       1,662  

  Changes in non-cash operating working capital:

                 

  Receivables

             (2,443     (1,824      (2,835     (2,147

  Inventories

             1,848       2,174        63       746  

  Prepaid expenses and other current assets

             310       247        998       1,013  

  Payables and accrued charges

                                     534       (159      1,231       (44

  CASH PROVIDED BY OPERATING ACTIVITIES

                                     1,966       1,756        1,814       1,230  

  INVESTING ACTIVITIES

                 

  Additions to property, plant and equipment

             (378     (298      (703     (661

  Additions to intangible assets

             (5     (36      (38     (68

  Business acquisitions, net of cash acquired

             (19     (116      (40     (173

  Other

                                     (29     42        (38     49  

  CASH USED IN INVESTING ACTIVITIES

                                     (431     (408      (819     (853

  FINANCING ACTIVITIES

                 

  Transaction costs related to debt

             (7     (15      (7     (15

  (Repayment of) proceeds from short-term debt, net

             (104     (4,290      (3     204  

  Proceeds from long-term debt

             8       1,500        8       1,506  

  Repayment of long-term debt

             (5     (6      (5     (507

  Repayment of principal portion of lease liabilities

             (86     (70      (164     (134

  Dividends paid to Nutrien’s shareholders

    6                    (263     (258      (518     (514

  Repurchase of common shares

    6                    (1     -        (2     (160

  Issuance of common shares

             21       -        63       -  

  Other

                                     (12     -        (12     -  

  CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

                                     (449     (3,139      (640     380  

  EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS

                                     (4     24        (15     (13

  INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

             1,082       (1,767      340       744  

  CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD

                                     712       3,182        1,454       671  

  CASH AND CASH EQUIVALENTS – END OF PERIOD

                                     1,794       1,415        1,794       1,415  

  Cash and cash equivalents comprised of:

                 

  Cash

             1,580       1,106        1,580       1,106  

  Short-term investments

                                     214       309        214       309  
                                       1,794       1,415        1,794       1,415  

  SUPPLEMENTAL CASH FLOWS INFORMATION

                 

  Interest paid

             86       153        162       249  

  Income taxes paid

             105       30        144       65  

  Total cash outflow for leases

                                     111       96        208       188  

  (See Notes to the Condensed Consolidated Financial Statements)

 

 

 

24


Unaudited   In millions of US dollars except as otherwise noted  

 

Condensed Consolidated Statements of Changes in Shareholders’ Equity

 

                      Accumulated Other Comprehensive (Loss) Income (“AOCI”)                          
     Number of
Common
Shares
    Share
Capital
    Contributed
Surplus
    Net Fair Value
(Loss) Gain
on
Investments
    Net
Actuarial
Gain on
Defined
Benefit
Plans 1
    Loss on
Currency
Translation
of Foreign
Operations
    Other     Total
AOCI
    Retained
Earnings
   

Equity
Holders

of

Nutrien
(Note 1)

    Non-
Controlling
Interest
(Note 1)
   

Total

Equity

 
         

 BALANCE – DECEMBER 31, 2019

    572,942,809       15,771       248       (29     -       (204     (18     (251     7,101       22,869       38       22,907  
         

 Net earnings

    -       -       -       -       -       -       -       -       730       730       -       730  
         

 Other comprehensive (loss) income

    -       -       -       (21     3       (121     (18     (157     -       (157     -       (157
         

 Shares repurchased (Note 6)

    (3,832,580     (105     (55     -       -       -       -       -       -       (160     -       (160
         

 Dividends declared

    -       -       -       -       -       -       -       -       (514     (514     -       (514
         

 Effect of share-based

   compensation including

   issuance of common shares

    35,706       1       7       -       -       -       -       -       -       8       -       8  
         

 Transfer of net loss on

   cash flow hedges

    -       -       -       -       -       -       11       11       -       11       -       11  
         

 Transfer of net actuarial gain

   on defined benefit plans

    -       -       -       -       (3     -       -       (3     3       -       -       -  
         

 BALANCE – JUNE 30, 2020

    569,145,935       15,667       200       (50     -       (325     (25     (400     7,320       22,787       38       22,825  
         

 BALANCE – DECEMBER 31, 2020

    569,260,406       15,673       205       (36     -       (62     (21     (119     6,606       22,365       38       22,403  
         

 Net earnings

    -       -       -       -       -       -       -       -       1,235       1,235       11       1,246  
         

 Other comprehensive income (loss)

    -       -       -       70       -       (4     20       86       -       86       (1     85  
         

 Shares repurchased (Note 6)

    (32,728     (1     (1     -       -       -       -       -