All amounts are in US dollars except as otherwise noted
Nutrien Ltd. (TSX and NYSE: NTR) announced today its fourth
quarter and full year 2020 results, with fourth-quarter net
earnings of $316 million ($0.55 diluted earnings per share).
Fourth-quarter adjusted net earnings1 were $0.24 per share and
adjusted EBITDA1 was $768 million.
“Nutrien reported excellent results across our entire business.
Our Retail Ag Solutions business delivered a record fourth quarter
and we also reported higher potash and nitrogen sales volumes and
lower production costs. Agriculture fundamentals began to improve
in late 2020 and we are starting to see the benefit to our business
from this cyclical recovery,” commented Chuck Magro, Nutrien’s
President and CEO.
“We are committed to shareholder returns and again raised our
dividend and announced another share buyback program, which
emphasizes the strength of Nutrien, notwithstanding a global
pandemic. We continually look for ways to improve our business
portfolio, including the MOPCO divestment for over half-a-billion
dollars, with the intention to reallocate the capital to higher
return opportunities to drive shareholder value,” added Mr.
Magro.
Highlights:
- Nutrien announced a dividend increase and new share buyback
program. The Board of Directors approved an increase in the
quarterly dividend to $0.46 per share, our third dividend increase
in three years with an annualized payout at $1.84 per share.
Nutrien’s Board of Directors also approved the purchase of up to
five percent of Nutrien’s outstanding common shares over a one-year
period through a normal course issuer bid (NCIB). The NCIB is
subject to acceptance by the Toronto Stock Exchange.
- Nutrien generated $1.8 billion in free cash flow1 in 2020, and
$2.4 billion including the improvement to our non-cash operating
working capital1.
- Retail Ag Solutions delivered a 29 percent increase in adjusted
EBITDA in the fourth quarter of 2020 compared to the same period in
2019, due to exceptional organic growth and strong fall fertilizer
applications in North America. Retail generated 16 percent higher
adjusted EBITDA in 2020 compared to 2019 due to double digit
organic growth and contributions from acquisitions. 2020 Retail
adjusted EBITDA to sales was 9.7 percent on a consolidated basis
and 10.6 percent in the US, higher by 0.4 and 0.9 percentage
points, respectively, compared to 2019. Retail Ag Solutions further
improved results through supply chain and efficiency efforts
including improving the cash operating coverage ratio and lowering
Retail adjusted average working capital1 by nearly $900 million
compared to 2019. Adjusted EBITDA per US selling location1 reached
$1.08 million and digital platform sales exceeded $1.2 billion in
2020, more than double our goal of $500 million and over four times
2019 levels.
- Potash adjusted EBITDA in the fourth quarter increased 48
percent compared to the same period in 2019, due to much stronger
domestic and offshore sales volumes. 2020 Potash adjusted EBITDA
was 25 percent lower than in 2019 due to lower net realized selling
prices. Potash sales volumes in 2020 were the second highest on
record and Nutrien is fully committed on domestic and offshore
sales volumes into April of 2021, despite not shipping volumes to
China and India until new sales contracts are negotiated. Potash
cash cost of product manufactured1 was $59 per tonne in 2020, down
$4 per tonne from 2019.
- Nitrogen adjusted EBITDA increased 3 percent in the fourth
quarter of 2020 compared to the fourth quarter of 2019 primarily
due to higher sales volumes. Nitrogen adjusted EBITDA decreased 13
percent in 2020 as higher sales volumes and lower cost of goods
sold per tonne were more than offset by lower net realized selling
prices. Sales volumes increased by nearly 700,000 tonnes in 2020
driven by higher production resulting from debottlenecking projects
and strong operating rates.
- Nutrien closed the sale of its stake in Misr Fertilizers
Production Company S.A.E. (“MOPCO”) which includes settlement of
related arbitration claims. Total net proceeds received from the
transaction in 2020 were $540 million. The investment had
contributed approximately $15 million to $20 million to Nutrien’s
adjusted EBITDA annually, and carried a book value of approximately
$300 million. The cash received is expected to be redeployed to
generate higher returns for shareholders.
- Nutrien announced the launch of the agricultural industry’s
most comprehensive carbon program, providing end-to-end support for
growers to drive improved sustainability, boost yields and provide
the opportunity to monetize improved carbon performance at the farm
level through carbon credits.
- Nutrien’s 2021 adjusted net earnings per share1 and adjusted
EBITDA1 guidance is $2.05 to $2.75 per share and $4.0 billion to
$4.5 billion, respectively.
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.
Market Outlook
Agriculture and Retail
- Key crop prices continue to be supported by very tight global
supply and demand fundamentals, which have increased farm level
profitability and boosted grower sentiment. Global crop demand is
strong and is aided by record Chinese grain and oilseed
imports.
- US major crop planted acreage is expected to increase by
approximately 10 million acres in 2021. This increase is expected
to lead to much higher crop input demand, particularly for crop
nutrients, as prospective fertilizer costs as a proportion of crop
revenue are at decade-low levels.
- Record Brazilian crop margins led to higher soybean planting in
2020 and is expected to result in higher year-over-year planted
area for Safrinha corn in 2021. We expect this will support strong
Brazilian crop input demand in 2021.
Crop Nutrient Markets
- Global potash demand surpassed expectations in late 2020 and we
now estimate world potash shipments reached record levels at
approximately 68 million tonnes. Potash prices also improved
considerably in late 2020, with US Midwest prices up nearly $100
per tonne at the end of 2020 compared to mid-year levels. This
demand momentum continues in 2021 supported by favorable crop
economics, high potash affordability and limited inventory build in
major markets. As a result, we forecast 2021 global potash
shipments will be 68 to 70 million tonnes.
- India and China settled a 2021 potash agreement with one
supplier, the only major potash supply agreements to date. Canpotex
and other major suppliers individually commented that the agreement
did not reflect strengthening market conditions.
- North American fall potash applications were very strong in
2020 and channel inventories are low. Spring potash demand
continues to be strong and Nutrien has been fully committed on
domestic sales into the second quarter of 2021 since early December
2020. Globally, potash inventory levels continue to decrease while
crop prices and grower profitability have increased. As a result,
Canpotex is fully committed into the second quarter of 2021 and has
not placed or allocated any volumes to China nor India since the
previous supply contracts expired.
- A rally in global energy prices in early 2021 steepened the
nitrogen cost curve, which in addition to strong agricultural and
recovering industrial demand, led to higher nitrogen prices. Global
ammonia prices are further supported by tightening supply, while
urea prices are higher due to solid demand in nearly all key
markets. We expect that Chinese urea exports in 2021 will decline
to 3 to 5 million tonnes from 5.5 million tonnes in 2020 due to
strong domestic demand and higher coal feedstock prices.
- Global phosphate prices have continued to trend higher in early
2021, driven by tight supply and higher input costs.
Financial Outlook and Guidance
Based on market factors detailed above, we are issuing 2021
adjusted net earnings guidance of $2.05 to $2.75 per share and 2021
adjusted EBITDA guidance of $4.0 to $4.5 billion.
All guidance numbers, including those noted above and related
sensitivities are outlined in the tables below.
2021 Guidance Ranges 1
Low
High
Adjusted net earnings per share 2
$
2.05
$
2.75
Adjusted EBITDA (billions) 2
$
4.0
$
4.5
Retail Adjusted EBITDA (billions)
$
1.5
$
1.6
Potash Adjusted EBITDA (billions)
$
1.4
$
1.6
Nitrogen Adjusted EBITDA (billions)
$
1.1
$
1.3
Phosphate Adjusted EBITDA (millions)
$
250
$
350
Potash sales tonnes (millions) 3
12.5
13.0
Nitrogen sales tonnes (millions) 3
10.9
11.4
Depreciation and amortization
(billions)
$
1.9
$
2.0
Effective tax rate on adjusted
earnings
22
%
24
%
Sustaining capital expenditures (billions)
2
$
1.1
$
1.2
Impact to
Adjusted
Adjusted
2021 Annual Assumptions &
Sensitivities 1
EBITDA
EPS 4
$1/MMBtu change in NYMEX 5
$
155
$
0.21
$25/tonne change in realized potash
selling prices
$
260
$
0.35
$25/tonne change in realized ammonia
selling prices
$
47
$
0.06
$25/tonne change in realized urea selling
prices
$
82
$
0.11
2021 FX Rate CAD to USD
1.29
2021 NYMEX natural gas ($US/MMBtu)
$ 2.80
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. 4 Assumes 570 million shares outstanding. 5 Nitrogen
related impact.
Consolidated Results
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars)
2020
2019
% Change
2020
2019
% Change
Sales 1
4,052
3,462
17
20,908
20,084
4
Freight, transportation and
distribution
202
172
17
855
768
11
Cost of goods sold
2,685
2,256
19
14,814
13,814
7
Gross margin 1
1,165
1,034
13
5,239
5,502
(5)
Expenses 1
762
971
(22)
4,337
3,640
19
Net earnings (loss)
316
(48)
n/m
459
992
(54)
Adjusted EBITDA 2
768
664
16
3,667
4,025
(9)
Free cash flow ("FCF") 2
196
138
42
1,830
2,157
(15)
FCF including changes in non-cash
operating working
capital 2
2,370
2,068
15
2,404
2,647
(9)
1 Certain immaterial figures have been
reclassified for the three months and year ended December 31, 2019.
2 See the "Non-IFRS Financial Measures" section.
Net earnings increased in the fourth quarter of 2020 compared to
the same period in 2019 due to improved operating results, the gain
associated with the MOPCO transaction and the impact of impairments
in the fourth quarter of 2019. Net earnings in 2020 were lower than
2019 due to lower realized crop nutrient prices and the non-cash
impairment of assets largely related to our Phosphate operations in
the third quarter of 2020. Adjusted EBITDA increased in the fourth
quarter of 2020 compared to the same period in 2019 due to strong
Retail earnings growth and higher potash sales volumes. Adjusted
EBITDA decreased in the full year 2020 compared to 2019 primarily
due to lower crop nutrient prices that more than offset strong
Retail organic growth, earnings contributions from acquisitions and
greater operational efficiencies. The COVID-19 pandemic had limited
impact on our results during the periods.
Segment Results
Our discussion of segment results set out on the following pages
is a comparison of the results for the three and twelve months
ended December 31, 2020 to the results for the three and twelve
months ended December 31, 2019, respectively, unless otherwise
noted. In the third quarter of 2020, we revised the measure with
which we evaluate our segments from EBITDA to adjusted EBITDA.
Adjusted EBITDA provides a better indication of the segments
performance as it excludes the impact of impairments and other
costs that are centrally managed by our corporate function. We have
presented adjusted EBITDA for the comparative periods.
Retail
Three Months Ended December
31
(millions of US dollars, except
Dollars
Gross Margin
Gross Margin (%)
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
Sales
Crop nutrients
1,108
907
22
236
186
27
21
21
Crop protection products
828
635
30
343
281
22
41
44
Seed
152
99
54
58
60
(3)
38
61
Merchandise
240
211
14
41
44
(7)
17
21
Nutrien Financial
37
-
n/m
37
-
n/m
100
n/m
Services and other 1
290
339
(14)
207
185
12
71
55
Nutrien Financial elimination 2
(37)
-
n/m
(37)
-
n/m
100
n/m
2,618
2,191
19
885
756
17
34
35
Cost of goods sold
1,733
1,435
21
Gross margin
885
756
17
Expenses 1,3
768
687
12
Earnings before finance
costs and taxes ("EBIT")
117
69
70
Depreciation and amortization
180
162
11
EBITDA / Adjusted EBITDA
297
231
29
1 Certain immaterial figures have been
reclassified for the three months ended December 31, 2019. 2
Represents elimination for the interest and service fees charged by
Nutrien Financial to Retail branches. 3 Includes selling expenses
of $727 million (2019 – $668 million).
Twelve Months Ended December
31
(millions of US dollars, except
Dollars
Gross Margin
Gross Margin (%)
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
Sales
Crop nutrients
5,200
4,989
4
1,130
1,032
9
22
21
Crop protection products
5,602
4,983
12
1,303
1,173
11
23
24
Seed
1,790
1,712
5
363
336
8
20
20
Merchandise
943
598
58
157
109
44
17
18
Nutrien Financial
129
-
n/m
129
-
n/m
100
n/m
Services and other 1
1,241
1,000
24
774
651
19
62
65
Nutrien Financial elimination 2
(120)
-
n/m
(120)
-
n/m
100
n/m
14,785
13,282
11
3,736
3,301
13
25
25
Cost of goods sold
11,049
9,981
11
Gross margin
3,736
3,301
13
Expenses 1,3
2,974
2,665
12
EBIT
762
636
20
Depreciation and amortization
668
595
12
EBITDA / Adjusted EBITDA
1,430
1,231
16
1 Certain immaterial figures have been
reclassified for the year ended December 31, 2019. 2 Represents
elimination for the interest and service fees charged by Nutrien
Financial to Retail branches. 3 Includes selling expenses of $2,795
million (2019 – $2,484 million).
- Adjusted EBITDA increased in the fourth quarter of 2020
compared to the same period in 2019 due to stronger sales and firm
margins, with much higher gross margin for crop nutrients, crop
protection products and services and other. Adjusted EBITDA in 2020
increased by nearly $200 million compared to 2019 from a
combination of organic and acquisition-related growth. Selling
expenses as a percent of sales decreased in the fourth quarter and
were stable in 2020 compared to the same periods in 2019 due to
ongoing efficiency initiatives and despite higher depreciation and
amortization.
- Crop nutrients sales were higher in the fourth quarter
and full year of 2020 relative to the same periods in 2019 due to
27 percent and 15 percent higher sales volumes respectively, that
more than offset the impact of lower selling prices per tonne.
Fourth quarter sales increased due to strong fall applications in
the US and our expansion in South America. Gross margin percentage
was stable in the fourth quarter of 2020 but increased for the full
year of 2020 due to a larger proportion of higher-margin
proprietary product sales in the year.
- Crop protection products sales in the fourth quarter and
full year 2020 were higher compared to the same periods in 2019 due
to strong market share growth in all key regions. Gross margin
percentage decreased in the fourth quarter due to regional mix,
which was partially offset by stronger US proprietary product
results. US gross margin percentage increased nearly 3 percentage
points in the fourth quarter of 2020 relative to the same period in
2019. Gross margin percentage was similar year-over-year,
decreasing only 0.3 percentage points compared to 2019. US gross
margin percentage was 25 percent, higher by one percentage point
over 2019.
- Seed sales in the fourth quarter and full year 2020
increased relative to the same periods last year due to
contributions from the Tec Agro Group and Agrosema Comercial
Agricola Ltda. acquisitions in Brazil and higher sales in
Australia. Gross margin percentage decreased in the fourth quarter
of 2020 compared to the same period in 2019 due to regional mix and
the timing of US supplier and customer programs. Gross margin
percentage in the full year 2020 was consistent with the prior
year, as a one percentage point gain in the US was offset by the
lower rates in Australia caused by seed mix changes.
- Merchandise sales increased in the fourth quarter and
full year of 2020 due to strong demand growth, primarily in
Australia and the US. Gross margin percentage decreased in both
periods relative to 2019 due to a higher mix of lower-margin
product sales in Australia.
- Nutrien Financial is reported for the first full year of
operations for the Nutrien Financial business. Revenue is primarily
earned through interest and service fees that are charged to our
Retail branches or directly to customers.
- Services and other sales were lower in the fourth
quarter of 2020 compared to the same quarter in 2019 due to the
timing of livestock related sales in Australia, which more than
offset significantly higher application services in North and South
America. Gross margin and gross margin percentage in the fourth
quarter of 2020 were up significantly year-over-year primarily due
to strong demand for US application services. Sales and gross
margin were significantly higher in 2020 than in 2019 due to strong
growth in demand for services in Australia and North America.
Potash
Three Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
North America
199
146
36
1,041
651
60
192
226
(15)
Offshore
251
204
23
1,613
1,234
31
156
164
(5)
450
350
29
2,654
1,885
41
170
186
(9)
Cost of goods sold
305
211
45
116
112
4
Gross margin - manufactured
145
139
4
54
74
(27)
Gross margin - other 1
-
-
-
Depreciation and amortization
46
35
31
Gross margin - total
145
139
4
Gross margin excluding depreciation and
amortization - manufactured 3
Expenses 2
49
56
(13)
100
109
(8)
EBIT
96
83
16
Potash cash cost of product manufactured
3
Depreciation and amortization
123
66
86
71
82
(13)
EBITDA
219
149
47
Impairment of assets
1
-
n/m
Adjusted EBITDA
220
149
48
1 Includes other potash and purchased
products and is comprised of net sales of $Nil (2019 – $Nil) less
cost of goods sold of $Nil (2019 – $Nil).
2 Includes provincial mining and other
taxes of $40 million (2019 – $50 million).
3 See the "Non-IFRS Financial Measures"
section.
Twelve Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
North America
908
978
(7)
4,815
4,040
19
189
242
(22)
Offshore
1,238
1,625
(24)
8,009
7,481
7
155
217
(29)
2,146
2,603
(18)
12,824
11,521
11
167
226
(26)
Cost of goods sold
1,183
1,103
7
92
96
(4)
Gross margin - manufactured
963
1,500
(36)
75
130
(42)
Gross margin - other 1
-
1
(100)
Depreciation and amortization
35
34
3
Gross margin - total
963
1,501
(36)
Gross margin excluding depreciation and
amortization - manufactured
Expenses 2
248
298
(17)
110
164
(33)
EBIT
715
1,203
(41)
Potash cash cost of product
manufactured
Depreciation and amortization
452
390
16
59
63
(6)
EBITDA
1,167
1,593
(27)
Impairment of assets
23
-
n/m
Adjusted EBITDA
1,190
1,593
(25)
1 Includes other potash and purchased products and is comprised
of net sales of $Nil (2019 – $1 million) less cost of goods sold of
$Nil (2019 – $Nil).
2 Includes provincial mining and other
taxes of $201 million (2019 – $287 million).
- Adjusted EBITDA increased in the fourth quarter of 2020
compared to the same quarter in 2019, due to higher domestic and
offshore sales volumes and lower cost of goods sold per tonne,
excluding the impact of depreciation and amortization. Adjusted
EBITDA in 2020 decreased compared to 2019 as lower net realized
selling prices more than offset positive impacts of significantly
higher sales volumes and lower production costs and operating
costs.
- Sales volumes in the fourth quarter and full year of
2020 increased relative to the same periods in 2019 due to strong
domestic and offshore demand supported by improved global crop
prices, increased planted acreage in the US and strong fall
application in North America in anticipation of higher planting in
2021.
- Net realized selling price decreased in the fourth
quarter and full year of 2020 due to lower year-over-year global
benchmark prices.
- Cost of goods sold per tonne increased in the fourth
quarter of 2020 due to higher depreciation and amortization related
to production mix and the timing of maintenance projects relative
to the fourth quarter of 2019. Excluding the impact of depreciation
and amortization, cost of goods sold per tonne was lower both in
the fourth quarter and full year of 2020 due to production
efficiencies and higher production levels. These factors also
lowered the potash cash cost of product manufactured in both
periods.
Canpotex Sales by Market
(percentage of sales volumes, except
as
Three Months Ended December
31
Twelve Months Ended December
31
otherwise noted)
2020
2019
Change
2020
2019
Change
Latin America
31
31
-
32
31
1
Other Asian markets 1
24
27
(3)
25
27
(2)
China
21
17
4
22
22
-
India
17
7
10
14
10
4
Other markets
7
18
(11)
7
10
(3)
100
100
100
100
1 All Asian markets except China and
India.
Nitrogen
Three Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
Ammonia
157
141
11
730
571
28
216
245
(12)
Urea
230
193
19
853
695
23
270
278
(3)
Solutions, nitrates and
sulfates
168
166
1
1,262
1,096
15
133
152
(13)
555
500
11
2,845
2,362
20
195
212
(8)
Cost of goods sold
460
404
14
162
171
(5)
Gross margin - manufactured
95
96
(1)
33
41
(20)
Gross margin - other 1
17
11
55
Depreciation and amortization
51
60
(15)
Gross margin - total
112
107
5
Gross margin excluding depreciation and
amortization - manufactured
Income 2
(254)
(11)
n/m
84
101
(17)
EBIT
366
118
210
Ammonia controllable cash cost of product
manufactured 3
Depreciation and amortization
146
141
4
40
48
(17)
EBITDA
512
259
98
Adjustments 2
(246)
-
n/m
Adjusted EBITDA
266
259
3
1 Includes other nitrogen (including ESN®
and Rainbow) and purchased products and is comprised of net sales
of $114 million (2019 – $103 million) less cost of goods sold of
$97 million (2019 – $92 million).
2 The adjustments consist primarily of the
net gain on disposal of investment in MOPCO which was recorded in
other income. See Note 2 and Note 3 to the unaudited condensed
consolidated financial statements as at and for the three and
twelve months ended December 31, 2020.
3 See the "Non-IFRS Financial Measures"
section.
Twelve Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
Ammonia
621
743
(16)
2,778
2,971
(6)
224
250
(10)
Urea
933
932
-
3,475
3,037
14
268
307
(13)
Solutions, nitrates and
sulfates
668
706
(5)
4,713
4,262
11
142
166
(14)
2,222
2,381
(7)
10,966
10,270
7
203
232
(13)
Cost of goods sold
1,804
1,749
3
165
170
(3)
Gross margin - manufactured
418
632
(34)
38
62
(39)
Gross margin - other 1
57
68
(16)
Depreciation and amortization
55
52
6
Gross margin - total
475
700
(32)
Gross margin excluding depreciation and
amortization - manufactured
Income 2
(225)
(4)
n/m
93
114
(18)
EBIT
700
704
(1)
Ammonia controllable cash cost of product
manufactured
Depreciation and amortization
599
535
12
43
45
(4)
EBITDA
1,299
1,239
5
Adjustments 2
(219)
-
n/m
Adjusted EBITDA
1,080
1,239
(13)
1 Includes other nitrogen (including ESN®
and Rainbow) and purchased products and is comprised of net sales
of $518 million (2019 – $467 million) less cost of goods sold of
$461 million (2019 – $399 million).
2 The adjustments consist primarily of the
net gain on disposal of investment in MOPCO which was recorded in
other income. See Note 2 and Note 3 to the unaudited condensed
consolidated financial statements as at and for the three and
twelve months ended December 31, 2020.
- Adjusted EBITDA increased in the fourth quarter of 2020
compared to the same period in 2019 due to significantly higher
sales volumes that more than offset lower net realized selling
prices. Adjusted EBITDA in the full year 2020 decreased relative to
2019 as lower net realized selling prices were only partially
offset by higher sales volumes and lower cost of goods sold per
tonne.
- Sales volumes increased in the fourth quarter and full
year of 2020 compared to the same periods in 2019 due to strong
fertilizer sales in North America that more than offset lower
global industrial demand. Total nitrogen sales in 2020 were the
highest on record as a result of recent expansion projects and
strong overall operating rates at our North American
facilities.
- Net realized selling price of nitrogen was lower in the
fourth quarter and full year 2020 than the same periods in 2019 due
to lower global and North American benchmark prices. Fourth quarter
2020 sales commitments were mostly made in the previous quarter,
prior to more recent increases in benchmark prices.
- Cost of goods sold per tonne decreased in the fourth
quarter of 2020 as higher production volumes and lower depreciation
and amortization per tonne more than offset the impact of higher
natural gas costs. Cost of goods sold per tonne in 2020 decreased
compared to 2019 due to lower natural gas costs and lower fixed
costs, more than offsetting an increase in depreciation and
amortization. Ammonia controllable cash cost of product
manufactured per tonne declined in the fourth quarter due to
increased production volumes, as the comparable period was impacted
by turnaround activity at our Trinidad facility.
Natural Gas Prices in Cost of Production
Three Months Ended December
31
Twelve Months Ended December
31
(US dollars per MMBtu, except as otherwise
noted)
2020
2019
% Change
2020
2019
% Change
Overall gas cost excluding realized
derivative impact
2.71
2.46
10
2.31
2.47
(6)
Realized derivative impact
0.03
0.06
(50)
0.05
0.11
(55)
Overall gas cost
2.74
2.52
9
2.36
2.58
(9)
Average NYMEX
2.66
2.50
6
2.08
2.63
(21)
Average AECO
2.10
1.76
19
1.68
1.22
38
- Gas prices in our cost of production increased in
the fourth quarter of 2020 relative to the same period last year,
tracking benchmark prices. Lower US gas prices and a lower realized
derivative impact in 2020 more than offset higher Canadian gas
prices compared to the same period in 2019.
Phosphate
Three Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
Fertilizer
180
155
16
466
466
-
387
334
16
Industrial and feed
100
105
(5)
182
181
1
551
581
(5)
280
260
8
648
647
-
433
403
7
Cost of goods sold
265
255
4
410
395
4
Gross margin - manufactured
15
5
200
23
8
188
Gross margin - other 1
1
1
-
Depreciation and amortization
60
88
(32)
Gross margin - total
16
6
167
Gross margin excluding depreciation and
amortization - manufactured
(Income) Expenses
(8)
9
n/m
83
96
(14)
EBIT
24
(3)
n/m
Depreciation and amortization
39
57
(32)
EBITDA
63
54
17
Impairment of assets
-
-
-
Adjusted EBITDA
63
54
17
1 Includes other phosphate and purchased
products and is comprised of net sales of $40 million (2019 - $27
million) less cost of goods sold of $39 million (2019 - $26
million).
Twelve Months Ended December
31
(millions of US dollars, except
Dollars
Tonnes (thousands)
Average per Tonne
as otherwise noted)
2020
2019
% Change
2020
2019
% Change
2020
2019
% Change
Manufactured product
Net sales
Fertilizer
671
790
(15)
2,048
2,130
(4)
328
371
(12)
Industrial and feed
404
426
(5)
733
759
(3)
552
561
(2)
1,075
1,216
(12)
2,781
2,889
(4)
387
421
(8)
Cost of goods sold
1,044
1,218
(14)
376
422
(11)
Gross margin - manufactured
31
(2)
n/m
11
(1)
n/m
Gross margin - other 1
5
(3)
n/m
Depreciation and amortization
78
82
(5)
Gross margin - total
36
(5)
n/m
Gross margin excluding depreciation and
amortization - manufactured
Expenses
791
38
n/m
89
81
10
EBIT
(755)
(43)
n/m
Depreciation and amortization
218
237
(8)
EBITDA
(537)
194
n/m
Impairment of assets
769
-
n/m
Adjusted EBITDA
232
194
20
1 Includes other phosphate and purchased
products and is comprised of net sales of $127 million (2019 - $152
million) less cost of goods sold of $122 million (2019 - $155
million).
- Adjusted EBITDA increased in the fourth quarter of 2020
due to higher net realized selling prices resulting from higher
phosphate fertilizer prices compared to the same period in 2019 and
a gain on the sale of land in the fourth quarter of 2020. Full year
2020 adjusted EBITDA increased primarily due to lower costs of
goods sold per tonne compared to the same periods in 2019.
- Sales volumes were stable in the fourth quarter of 2020
relative to the same quarter in 2019 as higher sales into the North
American fertilizer market were offset by lower phosphoric acid
exports that carry a lower margin. Sales volumes in 2020 were lower
than in 2019 due to the conversion of the Redwater phosphate
facility to ammonium sulfate production in 2019 and a lower
phosphate operating rate.
- Net realized selling price of phosphate fertilizer was
higher in the fourth quarter of 2020 than in the fourth quarter of
2019 year following a recovery in global benchmark prices, which
was partially offset by lower industrial and feed prices and was
impacted by timing lags to benchmark prices. Net realized selling
prices in 2020 were lower than in 2019 consistent with lower global
benchmark prices.
- Cost of goods sold per tonne increased in the fourth
quarter of 2020 compared to the fourth quarter of 2019 due to
higher raw material input costs and lower production volumes that
offset lower depreciation and amortization following the non-cash
impairment in the third quarter of 2020. Cost of goods sold per
tonne was lower in 2020 relative to 2019 due to lower raw material
costs, favorable non-cash inventory adjustments and a change in
estimate related to an asset retirement obligation recorded in the
second quarter of 2020.
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 2021 annual 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; expectations regarding
repurchases of our common shares, including the timing thereof; the
negotiation of sales contracts; the implementation of our carbon
program and the benefits to Nutrien and growers therefrom; 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.
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; our
ability to successfully implement new initiatives and programs; and
our ability to redeploy capital to generate higher returns for
shareholders.
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 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 Securities and Exchange Commission in the United
States.
The purpose of our expected adjusted net earnings per share and
adjusted EBITDA (consolidated and by segment) guidance ranges, as
well as our adjusted earnings per share and adjusted EBITDA price
and input costs sensitivities 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
2019 Annual Report dated February 19, 2020. 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.
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 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.
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 Thursday, February 18,
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/5869929.
- Via Phone: 1-888-869-1189 Conference ID 5869929.
- 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/2020-q4-earnings-conference-call
Appendix A - Selected Additional Financial Data
Selected Retail measures
Three Months Ended December
31
Twelve Months Ended December
31
2020
2019
2020
2019
Proprietary products margin as a
percentage of product line margin (%)
Crop
nutrients
14
15
25
23
Crop
protection products
11
8
32
34
Seed
37
11
46
38
All
products
10.8
8.2
22.9
23.3
All
products before reclassification 1
11.1
8.4
23.3
23.7
Crop nutrients sales volumes (tonnes -
thousands)
North
America
2,063
1,558
9,746
8,812
International
622
559
2,986
2,236
Total
2,685
2,117
12,732
11,048
Crop nutrients selling price per
tonne
North
America
413
436
421
465
International
413
408
367
398
Total
413
428
408
452
Crop nutrients gross margin per
tonne
North
America
89
95
99
102
International
85
68
55
60
Total
88
88
89
93
1
Adjusted to reflect what the metric would have been prior to a
reclassification of certain immaterial figures.
Financial performance measures
2020 Target
2020 Actuals
Retail
adjusted EBITDA to sales (%) 1
10
10
Retail
adjusted average working capital to sales (%) 1, 2
21
15
Retail
adjusted average working capital to sales excluding Nutrien
Financial (%) 1, 2
5
Retail
cash operating coverage ratio (%) 1, 2
61.8
Retail
cash operating coverage ratio before reclassification (%) 1, 2,
3
61
61.1
Retail
normalized comparable store sales (%) 2
6
Retail
adjusted EBITDA per US selling location (thousands of US dollars)
1, 2
1,000
1,075
Nutrien
Financial net interest margin (%) 1,2
5.3
1
Rolling four quarters ended December 31, 2020.
2 See
the "Non-IFRS Financial Measures" section.
3
Adjusted to reflect what the metric would have been prior to a
reclassification of certain immaterial figures.
Nutrien Financial
As at December 31,
2020
(millions of US dollars)
Current
<31 days past due
31-90 days past due
>90 days past due
Allowance 1
Total
North
America
962
130
44
38
(24)
1,150
International
178
2
16
47
(1)
242
Nutrien
Financial receivables 2
1,140
132
60
85
(25)
1,392
1 Bad
debt expense on the above receivables was $26 million (2019 - $5
million) in the Retail segment.
2
Includes $1,147 million (2019 - $762 million) of very low risk of
default and $270 million (2019 - $64 million) of low risk of
default.
Selected Nitrogen measures
Three Months Ended December
31
Twelve Months Ended December
31
2020
2019
2020
2019
Sales volumes (tonnes -
thousands)
Fertilizer
1,740
1,350
6,750
5,554
Industrial and feed
1,105
1,012
4,216
4,716
Net sales (millions of US
dollars)
Fertilizer
359
311
1,467
1,466
Industrial and feed
196
189
755
915
Net selling price per tonne
Fertilizer
206
230
217
264
Industrial and feed
178
187
179
194
Production measures
Three Months Ended December
31
Twelve Months Ended December
31
2020
2019
2020
2019
Potash
production (Product tonnes - thousands)
2,784
1,939
12,595
11,700
Potash
shutdown weeks 1
-
28
38
55
Ammonia
production - total 2
1,584
1,401
6,063
6,164
Ammonia
production - adjusted 2,3
1,035
1,036
4,102
3,978
Ammonia
operating rate (%) 3
94
94
93
91
P2O5
production (P2O5 tonnes - thousands) 4
361
390
1,444
1,514
P2O5
operating rate (%) 4
84
91
85
89
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.
4
Excludes Redwater.
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 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.
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, Merger and related costs, certain acquisition and
integration related costs, share-based compensation, impairment of
assets, certain foreign exchange gain/loss (net of related
derivatives), COVID-19 related expenses, loss on disposal of
business and net gain on disposal of investment in MOPCO. In 2020,
we amended our calculation of adjusted EBITDA to adjust for the
impact of COVID-19 related expenses, loss on disposal of business
and net gain on disposal of investment in MOPCO. There were no
similar income or expenses in the comparative period. To align with
the change in our segment performance measure effective in 2020, we
will primarily use adjusted EBITDA going forward as our
consolidated performance measure.
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 December
31
Twelve Months Ended December
31
(millions of US dollars)
2020
2019
2020
2019
Net earnings (loss)
316
(48)
459
992
Finance costs
119
141
520
554
Income tax (recovery) expense
(32)
(30)
(77)
316
Depreciation and amortization
499
436
1,989
1,799
EBITDA
902
499
2,891
3,661
Merger and related costs
-
25
-
82
Acquisition and integration related
costs
22
16
60
16
Share-based compensation expense
60
9
69
104
Impairment of assets
1
87
824
120
COVID-19 related expenses
18
-
48
-
Foreign exchange loss, net of related
derivatives
15
28
19
42
Loss on disposal of business
-
-
6
-
Net gain on disposal of investment in
MOPCO
(250)
-
(250)
-
Adjusted EBITDA
768
664
3,667
4,025
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 acquisition
and integration related costs, share-based compensation, certain
foreign exchange gain/loss (net of related derivatives), and
COVID-19 related expenses. 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
acquisition and integration related costs, share-based
compensation, certain foreign exchange gain/loss (net of related
derivatives), COVID-19 related expenses (including those recorded
under finance costs), 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 2020, we amended our calculation of
adjusted net loss to adjust for the impact of COVID-19 related
expenses, loss on disposal of business and net gain on disposal of
investment in MOPCO.
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
December 31, 2020
Twelve Months Ended
December 31, 2020
Per
Per
(millions of US dollars, except as
otherwise
Increases
Diluted
Increases
Diluted
noted)
(Decreases)
Post-Tax
Share
(Decreases)
Post-Tax
Share
Net earnings
316
0.55
459
0.81
Adjustments:
Acquisition and integration related
costs
22
13
0.03
60
44
0.08
Share-based compensation expense
60
36
0.06
69
50
0.09
Impairment of assets
1
1
-
824
657
1.15
COVID-19 related expenses
22
13
0.02
67
49
0.09
Foreign exchange loss, net of related
derivatives
15
9
0.02
19
14
0.02
Loss on disposal of business
-
-
-
6
4
-
Net gain on disposal of investment in
MOPCO
(250)
(250)
(0.44)
(250)
(250)
(0.44)
Adjusted net earnings
138
0.24
1,027
1.80
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.
Three Months Ended December
31
Twelve Months Ended December
31
(millions of US dollars)
2020
2019
2020
2019
Cash from operations before working
capital changes
604
489
2,749
3,175
Sustaining capital expenditures
(408)
(351)
(919)
(1,018)
Free cash flow
196
138
1,830
2,157
Changes in non-cash operating working
capital
2,174
1,930
574
490
Free cash flow including changes in
non-cash
operating working capital
2,370
2,068
2,404
2,647
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2020
2019
2020
2019
Total COGS - Potash
305
211
1,183
1,103
Change in inventory
18
11
(10)
10
Other adjustments
(7)
-
(12)
(16)
COPM
316
222
1,161
1,097
Depreciation and amortization included in
COPM
(119)
(63)
(424)
(355)
Cash COPM
197
159
737
742
Production tonnes (tonnes - thousands)
2,784
1,939
12,595
11,700
Potash cash COPM per tonne
71
82
59
63
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 December
31
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2020
2019
2020
2019
Total COGS - Nitrogen
557
496
2,265
2,148
Depreciation and amortization in COGS
(127)
(122)
(522)
(462)
Cash COGS for products other than
ammonia
(325)
(274)
(1,342)
(1,226)
Ammonia
Total cash COGS before other
adjustments
105
100
401
460
Other adjustments 1
(6)
(22)
(52)
(57)
Total cash COPM
99
78
349
403
Natural gas and steam costs
(71)
(52)
(235)
(273)
Controllable cash COPM
28
26
114
130
Production tonnes (net tonnes 2 -
thousands)
704
544
2,649
2,887
Ammonia controllable cash COPM per
tonne
40
48
43
45
1 Includes changes in inventory balances
and other adjustments.
2 Ammonia tonnes available for sale, as
not upgraded to other Nitrogen products.
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
December 31, 2020
(millions of US dollars, except as
otherwise noted)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Average/Total
Working capital
2,288
2,030
3,216
1,157
Working capital from certain recent
acquisitions
(108)
63
-
-
Adjusted working capital
2,180
2,093
3,216
1,157
2,162
Nutrien Financial working capital
(795)
(2,108)
(1,711)
(1,392)
Adjusted working capital excluding Nutrien
Financial
1,385
(15)
1,505
(235)
660
Sales 1
2,661
6,764
2,742
2,618
Sales from certain recent acquisitions
(348)
(338)
-
-
Adjusted sales
2,313
6,426
2,742
2,618
14,099
Nutrien Financial sales 1
(16)
(40)
(36)
(37)
Adjusted sales excluding Nutrien
Financial
2,297
6,386
2,706
2,581
13,970
1 Certain immaterial figures have been
reclassified for the first three quarters of 2020.
Adjusted average working capital to
sales (%)
15
Adjusted average working capital to
sales excluding Nutrien Financial (%)
5
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.
Rolling four quarters ended
December 31, 2020
(millions of US dollars, except as
otherwise noted)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Total/Average
Nutrien Financial revenue
16
40
36
37
Deemed interest expense 1
(5)
(15)
(15)
(14)
Net interest
11
25
21
23
80
Average Nutrien Financial receivables
795
2,108
1,711
1,392
1,502
Nutrien Financial net interest margin
(%)
5.3
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 expenses1 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
December 31, 2020
(millions of US dollars, except as
otherwise noted)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Total
Operating expenses 1,2
689
826
691
768
2,974
Depreciation and amortization in operating
expenses
(153)
(161)
(167)
(177)
(658)
Operating expenses excluding depreciation
and amortization
536
665
524
591
2,316
Gross margin 2
541
1,627
683
885
3,736
Depreciation and amortization in cost of
goods sold
2
2
3
3
10
Gross margin excluding depreciation and
amortization
543
1,629
686
888
3,746
Cash operating coverage ratio
(%)
61.8
Cash operating coverage ratio before
reclassification (%) 3
61.1
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 first three quarters of 2020.
3 Adjusted to reflect what the metric
would have been prior to a reclassification of certain immaterial
figures.
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. In the
third quarter of 2020, we revised this measure from US EBITDA to US
adjusted EBITDA to align with how we evaluate Retail results. There
were no changes to this measure as a result of the change.
Rolling four quarters ended
December 31, 2020
(millions of US dollars, except as
otherwise noted)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Total
Adjusted US EBITDA
(44)
766
86
177
985
Adjustments for acquisitions
(5)
Adjusted US EBITDA adjusted for
acquisitions
980
Number of US selling locations adjusted
for acquisitions
912
Adjusted EBITDA per US selling location
(thousands of US dollars)
1,075
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.
Twelve Months Ended December
31
(millions of US dollars, except as
otherwise noted)
2020
2019
Sales from comparable base
Current period
13,546
12,568
Prior period 1
13,282
12,520
Comparable store sales (%)
2
0
Prior period normalized for benchmark
prices and foreign exchange rates 1
12,784
12,636
Normalized comparable store sales
(%)
6
(1)
1 Certain immaterial figures have been
reclassified in 2020.
Condensed Consolidated Financial Statements
Unaudited in millions of US Dollars except as otherwise
noted
Condensed Consolidated Statements of Earnings (Loss)
Three Months Ended
Twelve Months Ended
December 31
December 31
Note
2020
2019
2020
2019
Note 1
Note 1
SALES
2
4,052
3,462
20,908
20,084
Freight, transportation and
distribution
202
172
855
768
Cost of goods sold
2,685
2,256
14,814
13,814
GROSS MARGIN
1,165
1,034
5,239
5,502
Selling expenses
732
670
2,813
2,505
General and administrative expenses
117
117
429
404
Provincial mining and other taxes
41
39
204
292
Share-based compensation expense
60
9
69
104
Impairment of assets
1
87
824
120
Other (income) expenses
3
(189)
49
(2)
215
EARNINGS BEFORE FINANCE COSTS AND
INCOME TAXES
403
63
902
1,862
Finance costs
119
141
520
554
EARNINGS (LOSS) BEFORE INCOME
TAXES
284
(78)
382
1,308
Income tax (recovery) expense
(32)
(30)
(77)
316
NET EARNINGS (LOSS)
316
(48)
459
992
NET EARNINGS (LOSS) PER SHARE
("EPS")
Basic
0.55
(0.08)
0.81
1.70
Diluted
0.55
(0.08)
0.81
1.70
Weighted average shares outstanding for
basic EPS
569,180,000
572,916,000
569,657,000
582,269,000
Weighted average shares outstanding for
diluted EPS
569,393,000
572,916,000
569,686,000
583,102,000
Condensed Consolidated Statements of Comprehensive
Income
Three Months Ended
Twelve Months Ended
December 31
December 31
(Net of related income taxes)
2020
2019
2020
2019
NET EARNINGS (LOSS)
316
(48)
459
992
Other comprehensive income
Items that will not be reclassified to net
earnings (loss):
Net actuarial gain on defined benefit
plans
72
7
75
7
Net fair value gain (loss) on
investments
18
1
(7)
(25)
Items that have been or may be
subsequently reclassified to
net earnings (loss):
Gain on currency translation of foreign
operations
194
83
142
47
Other
(4)
2
(16)
7
OTHER COMPREHENSIVE INCOME
280
93
194
36
COMPREHENSIVE INCOME
596
45
653
1,028
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Statements of Cash Flows
Three Months Ended
Twelve Months Ended
December 31
December 31
2020
2019
2020
2019
OPERATING ACTIVITIES
Net earnings (loss)
316
(48)
459
992
Adjustments for:
Depreciation and amortization
499
436
1,989
1,799
Share-based compensation expense
60
9
69
104
Impairment of assets
1
87
824
120
Net gain on disposal of investment in Misr
Fertilizers Production Company
S.A.E. ("MOPCO")
(250)
-
(250)
-
Provision for (recovery of) deferred
income tax
90
(1)
(9)
177
Other long-term assets, liabilities and
miscellaneous
(112)
6
(333)
(17)
Cash from operations before working
capital changes
604
489
2,749
3,175
Changes in non-cash operating working
capital:
Receivables
1,600
1,363
145
(64)
Inventories
(1,068)
(1,049)
85
190
Prepaid expenses and other current
assets
(946)
(1,039)
(10)
(238)
Payables and accrued charges
2,588
2,655
354
602
CASH PROVIDED BY OPERATING
ACTIVITIES
2,778
2,419
3,323
3,665
INVESTING ACTIVITIES
Additions to property, plant and
equipment
(496)
(551)
(1,423)
(1,728)
Additions to intangible assets
(39)
(45)
(126)
(163)
Business acquisitions, net of cash
acquired
(17)
(74)
(233)
(911)
Proceeds from disposal of investment in
MOPCO
540
-
540
-
Proceeds from disposal of discontinued
operations, net of tax
-
-
-
55
Purchase of investments
(23)
(34)
(102)
(198)
Other
40
39
140
147
CASH PROVIDED BY (USED IN) INVESTING
ACTIVITIES
5
(665)
(1,204)
(2,798)
FINANCING ACTIVITIES
Transaction costs on long-term debt
-
-
(15)
(29)
(Repayment of) proceeds from short-term
debt, net
(1,493)
(1,318)
(892)
216
Proceeds from long-term debt
21
-
1,541
1,510
Repayment of long-term debt
(2)
-
(509)
(1,010)
Repayment of principal portion of lease
liabilities
(71)
(68)
(274)
(234)
Dividends paid
(259)
(258)
(1,030)
(1,022)
Repurchase of common shares
-
-
(160)
(1,930)
Issuance of common shares
-
2
-
20
CASH USED IN FINANCING
ACTIVITIES
(1,804)
(1,642)
(1,339)
(2,479)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND
CASH EQUIVALENTS
10
(9)
3
(31)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
989
103
783
(1,643)
CASH AND CASH EQUIVALENTS – BEGINNING
OF PERIOD
465
568
671
2,314
CASH AND CASH EQUIVALENTS – END OF
PERIOD
1,454
671
1,454
671
Cash and cash equivalents comprised
of:
Cash
1,375
532
1,375
532
Short-term investments
79
139
79
139
1,454
671
1,454
671
SUPPLEMENTAL CASH FLOWS
INFORMATION
Interest paid
164
152
498
505
Income taxes paid
64
28
156
29
Total cash outflow for leases
79
92
345
345
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Statements of Changes in Shareholders’
Equity
Accumulated Other Comprehensive
(Loss) Income ("AOCI")
Net
Actuarial
Loss on
Net Fair
Gain on
Currency
Number of
Value
Defined
Translation
Common
Share
Contributed
Loss on
Benefit
of Foreign
Total
Retained
Total
Shares
Capital
Surplus
Investments
Plans 1
Operations
Other
AOCI
Earnings
Equity 2
BALANCE – DECEMBER 31, 2018
608,535,477
16,740
231
(7)
-
(251)
(33)
(291)
7,745
24,425
Net earnings
-
-
-
-
-
-
-
-
992
992
Other comprehensive (loss) income
-
-
-
(25)
7
47
7
36
-
36
Shares repurchased
(36,067,323)
(992)
-
-
-
-
-
-
(886)
(1,878)
Dividends declared
-
-
-
-
-
-
-
-
(754)
(754)
Effect of share-based compensation
including
issuance of common shares
474,655
23
17
-
-
-
-
-
-
40
Transfer of net loss on sale of
investment
-
-
-
3
-
-
-
3
(3)
-
Transfer of net loss on cash flow
hedges
-
-
-
-
-
-
8
8
-
8
Transfer of net actuarial gain on defined
benefit plans
-
-
-
-
(7)
-
-
(7)
7
-
BALANCE – DECEMBER 31, 2019
572,942,809
15,771
248
(29)
-
(204)
(18)
(251)
7,101
22,869
Net earnings
-
-
-
-
-
-
-
-
459
459
Other comprehensive (loss) income
-
-
-
(7)
75
142
(16)
194
-
194
Shares repurchased
(3,832,580)
(105)
(55)
-
-
-
-
-
-
(160)
Dividends declared
-
-
-
-
-
-
-
-
(1,029)
(1,029)
Effect of share-based compensation
including
issuance of common shares
150,177
7
12
-
-
-
-
-
-
19
Transfer of net loss on cash flow
hedges
-
-
-
-
-
-
13
13
-
13
Transfer of net actuarial gain on defined
benefit plans
-
-
-
-
(75)
-
-
(75)
75
-
BALANCE – DECEMBER 31, 2020
569,260,406
15,673
205
(36)
-
(62)
(21)
(119)
6,606
22,365
1 Any amounts incurred during a period
were transferred to retained earnings at each period-end.
Therefore, no balance exists at the beginning or end of period.
2 All equity transactions were
attributable to common shareholders.
(See Notes to the Condensed Consolidated
Financial Statements)
Condensed Consolidated Balance Sheets
December 31
December 31
As at
2020
2019
ASSETS
Current assets
Cash and cash equivalents
1,454
671
Receivables
3,581
3,542
Inventories
4,930
4,975
Prepaid expenses and other current
assets
1,505
1,477
11,470
10,665
Non-current assets
Property, plant and equipment
19,660
20,335
Goodwill
12,198
11,986
Other intangible assets
2,388
2,428
Investments
562
821
Other assets
914
564
TOTAL ASSETS
47,192
46,799
LIABILITIES
Current liabilities
Short-term debt
159
976
Current portion of long-term debt
14
502
Current portion of lease liabilities
249
214
Payables and accrued charges
8,058
7,437
8,480
9,129
Non-current liabilities
Long-term debt
10,047
8,553
Lease liabilities
891
859
Deferred income tax liabilities
3,149
3,145
Pension and other post-retirement benefit
liabilities
454
433
Asset retirement obligations and accrued
environmental costs
1,597
1,650
Other non-current liabilities
209
161
TOTAL LIABILITIES
24,827
23,930
SHAREHOLDERS’ EQUITY
Share capital
15,673
15,771
Contributed surplus
205
248
Accumulated other comprehensive loss
(119)
(251)
Retained earnings
6,606
7,101
TOTAL SHAREHOLDERS’ EQUITY
22,365
22,869
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
47,192
46,799
(See Notes to the Condensed Consolidated
Financial Statements)
Notes to the Condensed Consolidated Financial
Statements
As at and for the Three and Twelve Months Ended December 31,
2020
NOTE 1 BASIS OF
PRESENTATION
Nutrien Ltd. (collectively with its subsidiaries, known as
“Nutrien”, “we”, “us”, “our” or “the Company”) is the world’s
largest provider of crop inputs and services. Nutrien plays a
critical role in helping growers around the globe increase food
production in a sustainable manner.
Our accounting policies are in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board. The accounting policies
and methods of computation used in preparing these unaudited
condensed consolidated financial statements are consistent with
those used in the preparation of our 2019 annual consolidated
financial statements. These unaudited condensed consolidated
financial statements include the accounts of Nutrien and its
subsidiaries; however, they do not include all disclosures normally
provided in annual consolidated financial statements and should be
read in conjunction with our 2019 annual consolidated financial
statements. Our 2020 annual consolidated financial statements,
which are expected to be issued in February 2021, will include
additional information under IFRS.
Certain immaterial 2019 figures have been reclassified in the
condensed consolidated statements of earnings (loss) and segment
information.
In management’s opinion, the unaudited condensed consolidated
financial statements include all adjustments necessary to fairly
present such information in all material respects.
NOTE 2 SEGMENT
INFORMATION
The Company has four reportable operating segments: Retail Ag
Solutions (“Retail”), Potash, Nitrogen and Phosphate. The Retail
segment distributes crop nutrients, crop protection products, seed
and merchandise, and it provides services directly to growers
through a network of farm centers in North America, South America
and Australia. The Potash, Nitrogen and Phosphate segments are
differentiated by the chemical nutrient contained in the products
that each produce. Sales reported under our Corporate and Others
segment primarily relates to our non-core Canadian business, which
was sold in 2020.
In the third quarter of 2020, the Chief Operating Decision Maker
changed the measure used to evaluate the performance of our
operating segments from net earnings (loss) before finance costs,
income taxes, and depreciation and amortization (“EBITDA”) to
adjusted EBITDA. Adjusted EBITDA provides a better indication of
the segment’s performance as it excludes the impact of impairments
and other costs that are centrally managed by our corporate
function. Due to the change in the measurement of the segments, we
have presented adjusted EBITDA for the comparative periods.
Three Months Ended December
31, 2020
Corporate
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third
party
2,608
467
647
318
12
-
4,052
–
intersegment
10
57
147
56
-
(270)
-
Sales
–
total
2,618
524
794
374
12
(270)
4,052
Freight,
transportation and distribution
-
74
125
54
-
(51)
202
Net
sales
2,618
450
669
320
12
(219)
3,850
Cost of
goods sold
1,733
305
557
304
11
(225)
2,685
Gross
margin
885
145
112
16
1
6
1,165
Selling
expenses
727
2
8
2
(7)
-
732
General
and administrative expenses
33
2
1
3
78
-
117
Provincial mining and other taxes
-
40
-
-
1
-
41
Share-based compensation expense
-
-
-
-
60
-
60
Impairment of assets
-
1
-
-
-
-
1
Other
expenses (income)
8
4
(263)
(13)
75
-
(189)
Earnings
(loss) before finance costs and
income
taxes
117
96
366
24
(206)
6
403
Depreciation and amortization
180
123
146
39
11
-
499
EBITDA
297
219
512
63
(195)
6
902
Acquisition and integration related
costs
-
-
4
-
18
-
22
Share-based compensation expense
-
-
-
-
60
-
60
Impairment of assets
-
1
-
-
-
-
1
COVID-19
related expenses
-
-
-
-
18
-
18
Foreign
exchange loss, net of
related
derivatives
-
-
-
-
15
-
15
Net gain
on disposal of investment in
MOPCO
-
-
(250)
-
-
-
(250)
Adjusted
EBITDA
297
220
266
63
(84)
6
768
Assets –
at December 31, 2020
20,526
12,032
10,612
1,462
2,983
(423)
47,192
Three Months Ended December 31,
2019
Corporate
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
2,181
374
575
298
34
-
3,462
– intersegment
10
29
125
43
-
(207)
-
Sales
– total
2,191
403
700
341
34
(207)
3,462
Freight, transportation and
distribution
-
53
97
54
-
(32)
172
Net sales
2,191
350
603
287
34
(175)
3,290
Cost of goods sold
1,435
211
496
281
34
(201)
2,256
Gross margin
756
139
107
6
-
26
1,034
Selling expenses
668
2
4
-
(4)
-
670
General and administrative expenses
30
6
4
4
73
-
117
Provincial mining and other taxes
-
50
-
-
(11)
-
39
Share-based compensation expense
-
-
-
-
9
-
9
Impairment of assets
-
-
-
-
87
-
87
Other (income) expenses
(11)
(2)
(19)
5
76
-
49
Earnings (loss) before finance costs
and
income taxes
69
83
118
(3)
(230)
26
63
Depreciation and amortization
162
66
141
57
10
-
436
EBITDA
231
149
259
54
(220)
26
499
Merger and related costs
-
-
-
-
25
-
25
Acquisition and integration related
costs
-
-
-
-
16
-
16
Share-based compensation expense
-
-
-
-
9
-
9
Impairment of assets
-
-
-
-
87
-
87
Foreign exchange loss, net of
related derivatives
-
-
-
-
28
-
28
Adjusted EBITDA
231
149
259
54
(55)
26
664
Assets – at December 31, 2019
19,990
11,696
10,991
2,198
2,129
(205)
46,799
Twelve Months Ended December
31, 2020
Corporate
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third
party
14,748
2,265
2,572
1,241
82
-
20,908
–
intersegment
37
248
628
202
-
(1,115)
-
Sales
–
total
14,785
2,513
3,200
1,443
82
(1,115)
20,908
Freight,
transportation and distribution
-
367
460
241
-
(213)
855
Net
sales
14,785
2,146
2,740
1,202
82
(902)
20,053
Cost of
goods sold
11,049
1,183
2,265
1,166
74
(923)
14,814
Gross
margin
3,736
963
475
36
8
21
5,239
Selling
expenses
2,795
9
27
6
(24)
-
2,813
General
and administrative expenses
135
7
8
10
269
-
429
Provincial mining and other taxes
-
201
1
-
2
-
204
Share-based compensation expense
-
-
-
-
69
-
69
Impairment of assets
-
23
27
769
5
-
824
Other
expenses (income)
44
8
(288)
6
228
-
(2)
Earnings
(loss) before finance costs and
income
taxes
762
715
700
(755)
(541)
21
902
Depreciation and amortization
668
452
599
218
52
-
1,989
EBITDA
1,430
1,167
1,299
(537)
(489)
21
2,891
Acquisition and integration related
costs
-
-
4
-
56
-
60
Share-based compensation expense
-
-
-
-
69
-
69
Impairment of assets
-
23
27
769
5
-
824
COVID-19
related expenses
-
-
-
-
48
-
48
Foreign
exchange loss, net of
related
derivatives
-
-
-
-
19
-
19
Loss on
disposal of business
-
-
-
-
6
-
6
Net gain
on disposal of investment in
MOPCO
-
-
(250)
-
-
-
(250)
Adjusted
EBITDA
1,430
1,190
1,080
232
(286)
21
3,667
Assets –
at December 31, 2020
20,526
12,032
10,612
1,462
2,983
(423)
47,192
Twelve Months Ended December 31,
2019
Corporate
Retail
Potash
Nitrogen
Phosphate
and Others
Eliminations
Consolidated
Sales
– third party
13,244
2,702
2,608
1,397
133
-
20,084
– intersegment
38
207
612
203
-
(1,060)
-
Sales
– total
13,282
2,909
3,220
1,600
133
(1,060)
20,084
Freight, transportation and
distribution
-
305
372
232
-
(141)
768
Net sales
13,282
2,604
2,848
1,368
133
(919)
19,316
Cost of goods sold
9,981
1,103
2,148
1,373
133
(924)
13,814
Gross margin
3,301
1,501
700
(5)
-
5
5,502
Selling expenses
2,484
9
25
5
(18)
-
2,505
General and administrative expenses
112
6
15
7
264
-
404
Provincial mining and other taxes
-
287
2
1
2
-
292
Share-based compensation expense
-
-
-
-
104
-
104
Impairment of assets
-
-
-
-
120
-
120
Other expenses (income)
69
(4)
(46)
25
171
-
215
Earnings (loss) before finance costs
and
income taxes
636
1,203
704
(43)
(643)
5
1,862
Depreciation and amortization
595
390
535
237
42
-
1,799
EBITDA
1,231
1,593
1,239
194
(601)
5
3,661
Merger and related costs
-
-
-
-
82
-
82
Acquisition and integration related
costs
-
-
-
-
16
-
16
Share-based compensation expense
-
-
-
-
104
-
104
Impairment of assets
-
-
-
-
120
-
120
Foreign exchange loss, net of
related derivatives
-
-
-
-
42
-
42
Adjusted EBITDA
1,231
1,593
1,239
194
(237)
5
4,025
Assets – at December 31, 2019
19,990
11,696
10,991
2,198
2,129
(205)
46,799
NOTE 3 OTHER (INCOME)
EXPENSES
Three Months Ended
Twelve Months Ended
December 31
December 31
2020
2019
2020
2019
Merger and related costs
-
25
-
82
Acquisition and integration related
costs
22
16
60
16
Foreign exchange loss, net of related
derivatives
17
28
18
42
Earnings of equity-accounted investees
(27)
(13)
(73)
(66)
Bad debt (recovery) expense
(3)
(14)
6
24
COVID-19 related expenses
18
-
48
-
Loss on disposal of business
-
-
6
-
Net gain on disposal of investment in
MOPCO
(250)
-
(250)
-
Other expenses
34
7
183
117
(189)
49
(2)
215
In the fourth quarter of 2020, as a result of our strategic
decision to dispose of our investment in MOPCO, we received cash
consideration of $540 for the disposal of the investment and
settlement of legal claims. This resulted in a pre-tax gain of $250
recorded in other (income) expenses.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210217006038/en/
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
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