CF CF Industries Holdings Inc

By Josh Beckerman

Fertilizer and chemical company CF Industries Holdings Inc. (CF) said third-quarter sales were $1.038 billion, compared with $1.04 billion a year earlier, as earnings per share rose to 29 cents from 13 cents. The company expects nitrogen industry fundamentals will continue to improve "as the global market continues to tighten over the coming years."

On pricing in 2019:

"Average selling prices for the first nine months of 2019 were higher year-over-year across all major products due to a tighter global nitrogen supply and demand balance than the prior year period and logistical issues in North America that limited supply at some inland locations. Average selling prices for the third quarter of 2019 were similarly higher for urea, urea ammonium nitrate (UAN) and ammonium nitrate (AN), and were lower for ammonia due to greater global supply availability."

On its market overview:

"In the near-term, demand from import-dependent regions should support global pricing. In North America, corn crop futures continue to support an increase in planted corn acres over the next two seasons. Outside of North America, demand for urea from India and Brazil remains positive. Through September 2019, India has imported 5.9 million metric tons of urea, a 36 percent increase over the same period in 2018. India is expected to issue 1-2 more tenders through March 2020. Imports of urea to Brazil through September 2019 were 3.5 million metric tons, up approximately three percent year-over-year."

"The company expects that global demand growth for nitrogen over the next four years will outpace net capacity additions given the limited number of facilities currently under construction around the world, none of which are in North America. The company also expects Chinese coal-based nitrogen complexes to remain the global marginal urea producer and thus set the global price floor. Net Chinese-produced urea exports are likely to be in a range of 1-3 million metric tons annually, with higher nitrogen prices bidding in additional Chinese export tons at times when urea supply is needed worldwide."

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

October 30, 2019 19:16 ET (23:16 GMT)

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