Nutrien Ltd. (NTR) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 2023 10:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Greetings, and welcome to the Nutrien’s 2023 Second Quarter Earnings Conference Call. At this time all participants are in a listen-only mode [Operator Instructions] As a reminder this conference call is being recorded.

I would now like to turn the conference over to Jeff Holzman, Vice President of Investor Relations. Please go ahead.

Jeff Holzman

Thank you, operator. Good morning and welcome to Nutrien’s second quarter 2023 earnings call. As we conduct this call, various statements that we make about future expectations, plans and prospects contain forward-looking information. Certain material assumptions were applied in making these conclusions and forecasts. Therefore, actual results could differ materially from those contained in our forward-looking information. Additional information about these factors and assumptions are contained in our quarterly report to shareholders as well as our most recent annual report, MD&A and annual information form filed with Canadian and US Securities Commissions.

I will now turn the call over to Ken Seitz, President and CEO and Pedro Farah, our CFO, for opening comments before we take your questions.

Ken Seitz

Good morning, and thank you for joining us today as review our Q2 results and the outlook for our business. Fertilizer industry has gone through a period of unprecedented volatility over the past 18 months, driven by a series of unique events. However, we are encouraged by the continued improvement in demand as the year has progressed. This is most evident in North America, where we had a strong spring season relative fertilizer price stability and a significant reduction in channel inventories.

The positive sentiment is carried into the second half with solid customer engagement on all fertilizer products. The process has been slower in certain offshore fertilizer markets with a lack of consistent buying, but we believe the most significant period of volatility is now behind us.

Moving forward, we know there will be fluctuations in the market, requiring Nutrient to maintain a flexible approach and focus on controlling what we can control. The strategic actions we announced yesterday reflects our commitment to disciplined capital allocation and a focus on initiatives that enhance free cash flow through the cycle.

Before I speak more about the outlook and specific actions we are taking, I will turn it over to Pedro to review our Q2 results.