Nutrien moves on from Louisiana ammonia project amid cost cuts

NUTRIEN-STRATEGY/ (UPDATE 2):UPDATE 2-Nutrien moves on from Louisiana ammonia project amid cost cuts

Reuters
Published12 Jun 2024, 11:36 PM IST
Nutrien moves on from Louisiana ammonia project amid cost cuts
Nutrien moves on from Louisiana ammonia project amid cost cuts

(Adds comments from conference call in paragraphs 3,5 and 6)

By Sourasis Bose and Seher Dareen

June 12 (Reuters) - Nutrien on Wednesday said it was no longer pursuing its clean ammonia project in Louisiana and would also be reviewing strategic options for its stake in an Argentinian fertilizer company as it looks to rein in expenses.

The top potash producer had halted work indefinitely on its clean ammonia project at Geismar, Louisiana, in 2023 due to rising costs and uncertainty around the timing of emerging uses for clean ammonia.

Industries such as marine shipping and power generation are evaluating and piloting the use of ammonia as a clean fuel.

A company executive at its investor day said that the company wants to prioritize investments in its core agriculture segment.

Nutrien said it intends to reduce controllable costs across its operations by nearly $200 million by 2026 while maintaining an average capex of $2.2 to $2.3 billion through 2026.

The Saskatchewan-based

company said last month

that it would indefinitely halt three fertilizer-blending facilities in Brazil due to a downturn in fertilizer markets.

Nutrien also said it would review strategic options for its 50% ownership stake in the Argentinian firm Profertil, which produces 1.32 million tons of urea and 790,000 tons of ammonia per year.

Nutrien said it continues to

pursue divesting

its retail assets in Argentina, Chile and Uruguay, which account for 2% of its retail earnings.

It is also aiming for potash and nitrogen sales volume growth of approximately 2-3 million tonnes by 2026, compared to 2023.

"Our simplified and focused plan prioritizes initiatives that enhance our ability to serve growers in our core markets," CEO Ken Seitz said in a statement.

Toronto-listed shares of Nutrien were marginally down.

"We do not expect Nutrien's strategic priorities or targets to come as a significant surprise to investors," TD Cowen analysts wrote in a note. (Reporting by Seher Dareen and Sourasis Bose in Bengaluru; Editing by Tasim Zahid)

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First Published:12 Jun 2024, 11:36 PM IST
HomeNewsNutrien moves on from Louisiana ammonia project amid cost cuts

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