Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

CF Industries Higher as Fertilizer Producer Ups EBITDA Guidance

Published 12/10/2021, 07:32 AM
Updated 12/10/2021, 07:35 AM
© Reuters

© Reuters

By Dhirendra Tripathi

Investing.com – CF Industries stock (NYSE:CF) traded 3% higher in Friday's premarket after it raised its full-year EBITDA guidance amid soaring sales of fertilizers.

The stock had closed 2.7% lower Thursday.

The fertilizer manufacturer now sees its EBITDA at $2.75 billion at the midpoint of its guidance range, 20% higher than the previous forecast of $2.3 billion.

The company said that reflected higher-than-expected realized pricing for products and strong demand for nitrogen-based fertilizers, an outcome of pandemic-fueled consumption of both organic and processed foods. 

CF Industries also credited favorable weather that has enabled the strongest fall ammonia application season in North America in the last decade. 

The company reported its third-quarter results last month and said the global nitrogen demand-supply balance should remain tight at least into 2023. It said the conditions were favorable for prices to remain strong. It pegged its ammonia production for the year at 9 million tons.

It projected that farmers in North America will continue to plant nitrogen-consuming crops (corn, wheat, cotton and canola) at high levels given the current relatively high prices for those crops. Industrial activity in the region continues to increase in line with economic activity, supporting further demand for nitrogen products, it said in November.

CF’s third-quarter sales rose 61% to $1.36 billion.  

 

 

Latest comments

This means higher inflation on food supplies
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.