CF Industries Holdings, Inc. Reports First Half 2024 Net Earnings of $614 Million, Adjusted EBITDA of $1.21 Billion
CF Industries Holdings reported its first half 2024 financial results, highlighting strong operational performance and substantial cash generation. The company achieved net earnings of $614 million and an adjusted EBITDA of $1.21 billion. In the second quarter of 2024, net earnings were $420 million with an adjusted EBITDA of $752 million.
For the first half of 2024, net sales were $3.04 billion, down from $3.79 billion in the same period in 2023. The decrease was attributed to lower average selling prices due to reduced global energy costs. The company returned $832 million to shareholders through dividends and share repurchases.
CF Industries repurchased 4.0 million shares for $305 million in Q2 2024 and announced a new agreement with ExxonMobil for carbon sequestration. The company’s gross ammonia production increased slightly to 4.8 million tons in H1 2024, expecting a full-year production of 9.8 million tons.
CF Industries Holdings ha riportato i risultati finanziari del primo semestre del 2024, evidenziando una forte performance operativa e una sostanziale generazione di cassa. L'azienda ha registrato un utile netto di 614 milioni di dollari e un EBITDA rettificato di 1,21 miliardi di dollari. Nel secondo trimestre del 2024, l'utile netto è stato di 420 milioni di dollari con un EBITDA rettificato di 752 milioni di dollari.
Nel primo semestre del 2024, le vendite nette sono state di 3,04 miliardi di dollari, in calo rispetto a 3,79 miliardi di dollari nello stesso periodo del 2023. Il calo è stato attribuito a prezzi di vendita medi più bassi a causa della riduzione dei costi energetici globali. L'azienda ha restituito 832 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni.
CF Industries ha riacquistato 4,0 milioni di azioni per 305 milioni di dollari nel secondo trimestre del 2024 e ha annunciato un nuovo accordo con ExxonMobil per la cattura di carbonio. La produzione lorda di ammoniaca dell'azienda è leggermente aumentata a 4,8 milioni di tonnellate nel primo semestre del 2024, prevedendo una produzione annuale totale di 9,8 milioni di tonnellate.
CF Industries Holdings informó sus resultados financieros del primer semestre de 2024, destacando un sólido desempeño operativo y una considerable generación de efectivo. La empresa alcanzó una ganancia neta de 614 millones de dólares y un EBITDA ajustado de 1,21 mil millones de dólares. En el segundo trimestre de 2024, la ganancia neta fue de 420 millones de dólares con un EBITDA ajustado de 752 millones de dólares.
Para el primer semestre de 2024, las ventas netas fueron de 3,04 mil millones de dólares, una disminución respecto a 3,79 mil millones de dólares en el mismo período de 2023. La disminución se atribuyó a precios de venta promedio más bajos debido a la reducción de los costos de energía global. La empresa devolvió 832 millones de dólares a los accionistas a través de dividendos y recompra de acciones.
CF Industries recompró 4,0 millones de acciones por 305 millones de dólares en el Q2 de 2024 y anunció un nuevo acuerdo con ExxonMobil para la captura de carbono. La producción bruta de amoníaco de la compañía aumentó ligeramente a 4,8 millones de toneladas en el primer semestre de 2024, con una producción total esperada de 9,8 millones de toneladas para todo el año.
CF Industries Holdings는 2024년 상반기 재무 결과를 보고하며 강력한 운영 성과와 상당한 현금 생성 능력을 강조했습니다. 회사는 6억 1400만 달러의 순이익과 12억 1000만 달러의 조정 EBITDA를 달성했습니다. 2024년 2분기에는 순수익이 4억 2000만 달러였고 조정 EBITDA는 7억 5200만 달러였습니다.
2024년 상반기 동안 순매출은 30억 4000만 달러로, 2023년 같은 기간의 37억 9000만 달러에서 줄어들었습니다. 이 감소는 글로벌 에너지 비용 감소로 인한 평균 판매 가격 하락에 기인합니다. 회사는 배당금과 자사주 매입을 통해 8억 3200만 달러를 주주들에게 돌려주었습니다.
CF Industries는 2024년 2분기에 400만 주를 3억 5000만 달러에 재구매했으며, ExxonMobil과의 탄소 포집을 위한 새로운 계약을 발표했습니다. 회사의 총 암모니아 생산량은 2024년 상반기에 480만 톤으로 소폭 증가하였으며, 연간 생산량은 980만 톤에 이를 것으로 예상합니다.
CF Industries Holdings a annoncé ses résultats financiers du premier semestre 2024, mettant en avant une forte performance opérationnelle et une génération de trésorerie substantielle. L’entreprise a réalisé un bénéfice net de 614 millions de dollars et un EBITDA ajusté de 1,21 milliard de dollars. Au deuxième trimestre de 2024, le bénéfice net s'élevait à 420 millions de dollars avec un EBITDA ajusté de 752 millions de dollars.
Pour le premier semestre de 2024, les ventes nettes ont atteint 3,04 milliards de dollars, en baisse par rapport à 3,79 milliards de dollars au cours de la même période en 2023. La baisse a été attribuée à des prix de vente moyens plus bas en raison de la réduction des coûts énergétiques mondiaux. L'entreprise a restitué 832 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions.
CF Industries a racheté 4,0 millions d'actions pour 305 millions de dollars au T2 2024 et a annoncé un nouvel accord avec ExxonMobil pour la séquestration du carbone. La production brute d'ammoniac de l'entreprise a légèrement augmenté à 4,8 millions de tonnes au H1 2024, s'attendant à une production annuelle totale de 9,8 millions de tonnes.
CF Industries Holdings gab die finanziellen Ergebnisse für das erste Halbjahr 2024 bekannt und hob die starke operativen Leistung und die signifikante Cash-Generierung hervor. Das Unternehmen erzielte einen Nettoertrag von 614 Millionen Dollar und ein bereinigtes EBITDA von 1,21 Milliarden Dollar. Im zweiten Quartal 2024 betrug der Nettoertrag 420 Millionen Dollar bei einem bereinigten EBITDA von 752 Millionen Dollar.
Für das erste Halbjahr 2024 lagen die Nettoumsätze bei 3,04 Milliarden Dollar, ein Rückgang gegenüber 3,79 Milliarden Dollar im gleichen Zeitraum 2023. Der Rückgang wurde auf niedrigere durchschnittliche Verkaufspreise aufgrund gesunkener globaler Energiekosten zurückgeführt. Das Unternehmen gab 832 Millionen Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurück.
CF Industries kaufte im Q2 2024 4,0 Millionen Aktien für 305 Millionen Dollar zurück und kündigte eine neue Vereinbarung mit ExxonMobil zur Kohlenstoffspeicherung an. Die Bruttoproduktion von Ammoniak des Unternehmens stieg im H1 2024 leicht auf 4,8 Millionen Tonnen und erwartet eine Gesamtjahresproduktion von 9,8 Millionen Tonnen.
- Net earnings of $614 million in H1 2024.
- Adjusted EBITDA of $1.21 billion in H1 2024.
- Returned $832 million to shareholders in H1 2024.
- Repurchased 4.0 million shares for $305 million in Q2 2024.
- Entered agreement with ExxonMobil for carbon sequestration.
- Net sales decreased to $3.04 billion in H1 2024 from $3.79 billion in H1 2023.
- Average selling prices for H1 2024 were lower due to reduced global energy costs.
Strong Operational Performance in Second Quarter 2024
Favorable Energy Spreads Underpin Continued Strong Cash Generation
Returned
Highlights
-
First half 2024 net earnings(1)(2) of
$614 million $3.31 $1.24 billion $1.21 billion -
Second quarter 2024 net earnings of
$420 million $2.30 $752 million $752 million -
Trailing twelve months net cash from operating activities of
$2.02 billion $1.15 billion -
Entered agreement with ExxonMobil for the transport and sequestration of up to 500,000 metric tons of carbon dioxide from Company’s
Yazoo City, Mississippi , facility; start-up expected in 2028 -
Repurchased 4.0 million shares for
$305 million
"I am extremely proud of the team for running our plants exceptionally well, with phenomenal safety performance in the second quarter," said Tony Will, president and chief executive officer, CF Industries Holdings, Inc.
Operations Overview
The Company continues to operate safely across its network. As of June 30, 2024, the 12-month rolling average recordable incident rate was 0.17 incidents per 200,000 work hours, significantly better than industry averages.
Gross ammonia production for the first half and second quarter of 2024 was approximately 4.8 million and 2.6 million tons, respectively, compared to 4.7 million and 2.4 million tons in the first half and second quarter, respectively, of 2023. The Company expects gross ammonia production for the full year 2024 to be approximately 9.8 million tons.
Financial Results Overview
First Half 2024 Financial Results
For the first half of 2024, net earnings attributable to common stockholders were
Net sales in the first half of 2024 were
Cost of sales for the first half of 2024 was lower compared to the first half of 2023 due to lower realized natural gas costs partially offset by higher maintenance costs incurred in the first quarter of 2024 related to plant outages.
The average cost of natural gas reflected in the Company’s cost of sales was
Second Quarter 2024 Financial Results
For the second quarter of 2024, net earnings attributable to common stockholders were
Net sales in the second quarter of 2024 were
Cost of sales for the second quarter of 2024 was lower compared to the second quarter of 2023 primarily due to lower realized natural gas costs.
The average cost of natural gas reflected in the Company’s cost of sales was
Capital Management
Capital Expenditures
Capital expenditures in the second quarter and first half of 2024 were
Share Repurchase Program
The Company repurchased 8.3 million shares for
CHS Inc. Distribution
On July 31, 2024, the Board of Managers of CF Industries Nitrogen, LLC approved a semi-annual distribution payment to CHS Inc. of
Nitrogen Market Outlook
From the end of the second quarter of 2024 into the third quarter of 2024, gas curtailments in
-
North America : Management believes nitrogen channel inventories in the region for all products are below average based on strong demand for urea and UAN during the spring application season and higher-than-expected planted corn acres. Reported UAN and ammonia fill programs achieved prices above 2023 levels despite softening farm economics in the region as corn and soybean prices have fallen due to higher forecasted production in 2024 inthe United States andBrazil .
-
Brazil : Urea consumption inBrazil in 2024 is forecast to increase3% year-over-year to more than 8.0 million metric tons, supported by improved supply availability and lower global urea prices. Urea imports toBrazil in 2024 are expected to be in the range of 7.0-8.0 million metric tons as domestic production remains limited.
-
India :India is expected to be active importing urea through the second half of the year as the country secured lower-than-expected volumes in its two most recent tenders and urea consumption is expected to rise to support rice, wheat and other crop production. Management expects urea imports toIndia in 2024, including volumes supplied on a contractual basis, to be in a range of 5.0-6.0 million metric tons as recently revitalized plants and new facilities in the country operate at higher rates.
-
Europe : Approximately25% of ammonia and30% of urea capacity were reported in shutdown/curtailment inEurope in early July 2024. Management believes that ammonia operating rates and overall domestic nitrogen product output inEurope will remain below historical averages over the long-term given the region’s status as the global marginal producer. As a result, the Company expects nitrogen imports of ammonia and upgraded products to the region to be higher than historical averages.
-
China : Ongoing urea export controls by the Chinese government continues to limit urea export availability from the country. For the first six months of 2024,China exported 140,000 metric tons of urea, 86 percent lower than the same period in 2023.
-
Russia : Urea exports fromRussia are expected to increase in 2024 due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase Russian fertilizer, includingBrazil andthe United States . Exports of ammonia fromRussia are also expected to rise with the completion of the country’s Taman port ammonia terminal in the second half of 2024 though annual ammonia export volumes are projected to remain below pre-war levels.
Over the medium-term, significant energy cost differentials between North American producers and high-cost producers in
Longer-term, management expects the global nitrogen supply-demand balance to tighten as global nitrogen capacity growth over the next four years is not projected to keep pace with expected global nitrogen demand growth of approximately
Strategic Initiatives Update
Evaluation of low-carbon ammonia technologies and global low-carbon demand development
CF Industries, along with its partners, continue to advance front-end engineering and design (FEED) studies evaluating autothermal reforming (ATR) ammonia production technology and assessing the cost and viability of adding flue gas carbon dioxide capture to a steam methane reforming (SMR) ammonia facility. Both FEED studies are expected to be completed in the fourth quarter of 2024.
CF Industries and its partners also expect greater clarity later in 2024 regarding demand for low-carbon ammonia, including the ammonia carbon intensity requirements of offtake partners as well as government incentives and regulatory developments in partners’ local jurisdictions.
Donaldsonville Complex green ammonia project
Commissioning of the 20-megawatt alkaline water electrolysis plant constructed at CF Industries’
Donaldsonville Complex carbon capture and sequestration project
Engineering activities for the construction of a dehydration and compression unit at CF Industries’ Donaldsonville Complex continue to advance: all major equipment for the facility has been procured, fabrication of the carbon dioxide compressors is proceeding and construction of the cooling tower required for the unit has been completed. Once in service, the dehydration and compression unit will enable up to 2 million metric tons of captured process carbon dioxide to be transported and permanently stored by ExxonMobil. CF Industries expects the project to qualify for tax credits under Section 45Q of the Internal Revenue Code, which provides a credit per metric ton of carbon dioxide sequestered. Start-up of the project is expected in 2025.
Yazoo City Complex carbon capture and sequestration project
CF Industries signed a definitive commercial agreement in July 2024 with ExxonMobil for the transport and sequestration in permanent geologic storage of up to 500,000 metric tons of carbon dioxide annually from the Company’s
___________________________________________________ |
|
(1) |
Certain items recognized during the first half of 2024 impacted the Company’s financial results and their comparability to the prior year period. See the table accompanying this release for a summary of these items. |
(2) |
Financial results for the first half of 2024 include the impact of CF Industries’ acquisition of the |
(3) |
EBITDA is defined as net earnings attributable to common stockholders plus interest expense—net, income taxes and depreciation and amortization. See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
(4) |
Free cash flow is defined as net cash from operating activities less capital expenditures and distributions to noncontrolling interest. See reconciliation of free cash flow to the most directly comparable GAAP measure in the table accompanying this release. |
Consolidated Results
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2024 |
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2023 |
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2024 |
|
|
|
2023 |
|
|
(dollars in millions, except per share and per MMBtu amounts) |
||||||||||||||
Net sales |
$ |
1,572 |
|
|
$ |
1,775 |
|
|
$ |
3,042 |
|
|
$ |
3,787 |
|
Cost of sales |
|
893 |
|
|
|
971 |
|
|
|
1,954 |
|
|
|
2,120 |
|
Gross margin |
$ |
679 |
|
|
$ |
804 |
|
|
$ |
1,088 |
|
|
$ |
1,667 |
|
Gross margin percentage |
|
43.2 |
% |
|
|
45.3 |
% |
|
|
35.8 |
% |
|
|
44.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Net earnings attributable to common stockholders |
$ |
420 |
|
|
$ |
527 |
|
|
$ |
614 |
|
|
$ |
1,087 |
|
Net earnings per diluted share |
$ |
2.30 |
|
|
$ |
2.70 |
|
|
$ |
3.31 |
|
|
$ |
5.55 |
|
|
|
|
|
|
|
|
|
||||||||
EBITDA(1) |
$ |
752 |
|
|
$ |
855 |
|
|
$ |
1,240 |
|
|
$ |
1,779 |
|
Adjusted EBITDA(1) |
$ |
752 |
|
|
$ |
857 |
|
|
$ |
1,211 |
|
|
$ |
1,723 |
|
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
4,875 |
|
|
|
4,938 |
|
|
|
9,399 |
|
|
|
9,473 |
|
|
|
|
|
|
|
|
|
||||||||
Natural gas supplemental data (per MMBtu): |
|
|
|
|
|
|
|
||||||||
Natural gas costs in cost of sales(2) |
$ |
1.90 |
|
|
$ |
2.74 |
|
|
$ |
2.30 |
|
|
$ |
3.86 |
|
Realized derivatives loss in cost of sales(3) |
|
— |
|
|
|
0.01 |
|
|
|
0.23 |
|
|
|
0.70 |
|
Cost of natural gas used for production in cost of sales |
$ |
1.90 |
|
|
$ |
2.75 |
|
|
$ |
2.53 |
|
|
$ |
4.56 |
|
Average daily market price of natural gas Henry Hub ( |
$ |
2.04 |
|
|
$ |
2.12 |
|
|
$ |
2.24 |
|
|
$ |
2.40 |
|
|
|
|
|
|
|
|
|
||||||||
Unrealized net mark-to-market gain on natural gas derivatives |
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
(34 |
) |
|
$ |
(72 |
) |
Depreciation and amortization |
$ |
222 |
|
|
$ |
221 |
|
|
$ |
475 |
|
|
$ |
427 |
|
Capital expenditures |
$ |
84 |
|
|
$ |
95 |
|
|
$ |
182 |
|
|
$ |
164 |
|
|
|
|
|
|
|
|
|
||||||||
Production volume by product tons (000s): |
|
|
|
|
|
|
|
||||||||
Ammonia(4) |
|
2,602 |
|
|
|
2,374 |
|
|
|
4,750 |
|
|
|
4,733 |
|
Granular urea |
|
1,255 |
|
|
|
1,122 |
|
|
|
2,214 |
|
|
|
2,333 |
|
UAN ( |
|
1,833 |
|
|
|
1,665 |
|
|
|
3,464 |
|
|
|
3,263 |
|
Ammonium nitrate (AN) |
|
333 |
|
|
|
300 |
|
|
|
674 |
|
|
|
688 |
|
___________________________________________________ |
|
(1) |
See reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures in the tables accompanying this release. |
(2) |
Includes the cost of natural gas used for production and related transportation that is included in cost of sales during the period under the first-in, first-out inventory cost method. Excludes unrealized mark-to-market gains and losses on natural gas derivatives. |
(3) |
Includes realized gains and losses on natural gas derivatives settled during the period. |
(4) |
Gross ammonia production, including amounts subsequently upgraded on-site into granular urea, UAN, or AN. |
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia (ammonia), which is the base product that the Company manufactures, containing 82 percent nitrogen and 18 percent hydrogen. The results of the ammonia segment consist of sales of ammonia to external customers for its nitrogen content as a fertilizer, in emissions control and in other industrial applications. In addition, the Company upgrades ammonia into other nitrogen products such as urea, UAN and AN.
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2024(1) |
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2023 |
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2024(1) |
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|
2023 |
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(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
409 |
|
|
$ |
525 |
|
|
$ |
811 |
|
|
$ |
949 |
|
Cost of sales |
|
262 |
|
|
|
303 |
|
|
|
599 |
|
|
|
583 |
|
Gross margin |
$ |
147 |
|
|
$ |
222 |
|
|
$ |
212 |
|
|
$ |
366 |
|
Gross margin percentage |
|
35.9 |
% |
|
|
42.3 |
% |
|
|
26.1 |
% |
|
|
38.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
979 |
|
|
|
1,053 |
|
|
|
1,897 |
|
|
|
1,705 |
|
Sales volume by nutrient tons (000s)(2) |
|
802 |
|
|
|
863 |
|
|
|
1,555 |
|
|
|
1,398 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
418 |
|
|
$ |
499 |
|
|
$ |
428 |
|
|
$ |
557 |
|
Average selling price per nutrient ton(2) |
|
510 |
|
|
|
608 |
|
|
|
522 |
|
|
|
679 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(3): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
147 |
|
|
$ |
222 |
|
|
$ |
212 |
|
|
$ |
366 |
|
Depreciation and amortization |
|
49 |
|
|
|
47 |
|
|
|
121 |
|
|
|
78 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
|
(21 |
) |
Adjusted gross margin |
$ |
196 |
|
|
$ |
269 |
|
|
$ |
321 |
|
|
$ |
423 |
|
Adjusted gross margin as a percent of net sales |
|
47.9 |
% |
|
|
51.2 |
% |
|
|
39.6 |
% |
|
|
44.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
150 |
|
|
$ |
211 |
|
|
$ |
112 |
|
|
$ |
215 |
|
Gross margin per nutrient ton(2) |
|
183 |
|
|
|
257 |
|
|
|
136 |
|
|
|
262 |
|
Adjusted gross margin per product ton |
|
200 |
|
|
|
255 |
|
|
|
169 |
|
|
|
248 |
|
Adjusted gross margin per nutrient ton(2) |
|
244 |
|
|
|
312 |
|
|
|
206 |
|
|
|
303 |
|
___________________________________________________ |
|
(1) |
Financial results for the second quarter and first half of 2024 include the impact of CF Industries’ acquisition of the |
(2) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(3) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of first half 2024 to first half 2023:
-
Ammonia sales volume for 2024 increased compared to 2023 due to the addition of contractual commitments served from the recently acquired
Waggaman ammonia production facility, partially offset by lower spring ammonia agricultural applications inNorth America compared to the prior year. - Ammonia average selling prices decreased for 2024 compared to 2023 as lower global energy costs reduced the global market clearing price required to meet global demand and the Company had a higher proportion of non-agricultural ammonia sales.
- Ammonia adjusted gross margin per ton decreased for 2024 compared to 2023 due primarily to lower average selling prices and higher maintenance costs partially offset by lower realized natural gas costs.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea, which contains 46 percent nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of the Company’s solid nitrogen products.
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2024 |
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|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
457 |
|
|
$ |
460 |
|
|
$ |
864 |
|
|
$ |
1,071 |
|
Cost of sales |
|
230 |
|
|
|
222 |
|
|
|
483 |
|
|
|
549 |
|
Gross margin |
$ |
227 |
|
|
$ |
238 |
|
|
$ |
381 |
|
|
$ |
522 |
|
Gross margin percentage |
|
49.7 |
% |
|
|
51.7 |
% |
|
|
44.1 |
% |
|
|
48.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
1,251 |
|
|
|
1,147 |
|
|
|
2,343 |
|
|
|
2,470 |
|
Sales volume by nutrient tons (000s)(1) |
|
576 |
|
|
|
529 |
|
|
|
1,078 |
|
|
|
1,137 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
365 |
|
|
$ |
401 |
|
|
$ |
369 |
|
|
$ |
434 |
|
Average selling price per nutrient ton(1) |
|
793 |
|
|
|
870 |
|
|
|
801 |
|
|
|
942 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
227 |
|
|
$ |
238 |
|
|
$ |
381 |
|
|
$ |
522 |
|
Depreciation and amortization |
|
76 |
|
|
|
71 |
|
|
|
145 |
|
|
|
150 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
— |
|
|
|
— |
|
|
|
(9 |
) |
|
|
(20 |
) |
Adjusted gross margin |
$ |
303 |
|
|
$ |
309 |
|
|
$ |
517 |
|
|
$ |
652 |
|
Adjusted gross margin as a percent of net sales |
|
66.3 |
% |
|
|
67.2 |
% |
|
|
59.8 |
% |
|
|
60.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
181 |
|
|
$ |
207 |
|
|
$ |
163 |
|
|
$ |
211 |
|
Gross margin per nutrient ton(1) |
|
394 |
|
|
|
450 |
|
|
|
353 |
|
|
|
459 |
|
Adjusted gross margin per product ton |
|
242 |
|
|
|
269 |
|
|
|
221 |
|
|
|
264 |
|
Adjusted gross margin per nutrient ton(1) |
|
526 |
|
|
|
584 |
|
|
|
480 |
|
|
|
573 |
|
___________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of first half 2024 to first half 2023:
- Granular urea sales volumes for 2024 were lower than 2023 primarily due to reduced availability of ammonia for upgrade and lower supply availability from the impact of severe weather that caused urea plant outages in the first quarter of 2024.
- Urea average selling prices decreased for 2024 compared to 2023 as lower global energy costs reduced the global market clearing price required to meet global demand.
- Granular urea adjusted gross margin per ton decreased for 2024 compared to 2023 due primarily to lower average selling prices and the impact of purchased volumes of granular urea to meet customer commitments partially offset by lower realized natural gas costs.
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate solution (UAN). UAN is a liquid product with nitrogen content that typically ranges from 28 percent to 32 percent and is produced by combining urea and ammonium nitrate in solution.
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
475 |
|
|
$ |
548 |
|
|
$ |
900 |
|
|
$ |
1,215 |
|
Cost of sales |
|
259 |
|
|
|
289 |
|
|
|
541 |
|
|
|
635 |
|
Gross margin |
$ |
216 |
|
|
$ |
259 |
|
|
$ |
359 |
|
|
$ |
580 |
|
Gross margin percentage |
|
45.5 |
% |
|
|
47.3 |
% |
|
|
39.9 |
% |
|
|
47.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
1,748 |
|
|
|
1,809 |
|
|
|
3,359 |
|
|
|
3,471 |
|
Sales volume by nutrient tons (000s)(1) |
|
553 |
|
|
|
570 |
|
|
|
1,062 |
|
|
|
1,094 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
272 |
|
|
$ |
303 |
|
|
$ |
268 |
|
|
$ |
350 |
|
Average selling price per nutrient ton(1) |
|
859 |
|
|
|
961 |
|
|
|
847 |
|
|
|
1,111 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
216 |
|
|
$ |
259 |
|
|
$ |
359 |
|
|
$ |
580 |
|
Depreciation and amortization |
|
68 |
|
|
|
70 |
|
|
|
137 |
|
|
|
136 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
— |
|
|
|
— |
|
|
|
(10 |
) |
|
|
(21 |
) |
Adjusted gross margin |
$ |
284 |
|
|
$ |
329 |
|
|
$ |
486 |
|
|
$ |
695 |
|
Adjusted gross margin as a percent of net sales |
|
59.8 |
% |
|
|
60.0 |
% |
|
|
54.0 |
% |
|
|
57.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
124 |
|
|
$ |
143 |
|
|
$ |
107 |
|
|
$ |
167 |
|
Gross margin per nutrient ton(1) |
|
391 |
|
|
|
454 |
|
|
|
338 |
|
|
|
530 |
|
Adjusted gross margin per product ton |
|
162 |
|
|
|
182 |
|
|
|
145 |
|
|
|
200 |
|
Adjusted gross margin per nutrient ton(1) |
|
514 |
|
|
|
577 |
|
|
|
458 |
|
|
|
635 |
|
___________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of first half 2024 to first half 2023:
- UAN sales volumes for 2024 were similar to 2023 sales volumes.
- UAN average selling prices decreased for 2024 compared to 2023 as lower global energy costs reduced the global market clearing price required to meet global demand.
- UAN adjusted gross margin per ton decreased for 2024 compared to 2023 due primarily to lower average selling prices partially offset by lower realized natural gas costs.
AN Segment
CF Industries’ AN segment produces ammonium nitrate (AN). AN is used as a nitrogen fertilizer with nitrogen content between 29 percent to 35 percent, and also is used by industrial customers for commercial explosives and blasting systems.
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
98 |
|
|
$ |
104 |
|
|
$ |
212 |
|
|
$ |
263 |
|
Cost of sales |
|
75 |
|
|
|
81 |
|
|
|
180 |
|
|
|
185 |
|
Gross margin |
$ |
23 |
|
|
$ |
23 |
|
|
$ |
32 |
|
|
$ |
78 |
|
Gross margin percentage |
|
23.5 |
% |
|
|
22.1 |
% |
|
|
15.1 |
% |
|
|
29.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
340 |
|
|
|
369 |
|
|
|
730 |
|
|
|
743 |
|
Sales volume by nutrient tons (000s)(1) |
|
116 |
|
|
|
127 |
|
|
|
250 |
|
|
|
255 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
288 |
|
|
$ |
282 |
|
|
$ |
290 |
|
|
$ |
354 |
|
Average selling price per nutrient ton(1) |
|
845 |
|
|
|
819 |
|
|
|
848 |
|
|
|
1,031 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
23 |
|
|
$ |
23 |
|
|
$ |
32 |
|
|
$ |
78 |
|
Depreciation and amortization |
|
7 |
|
|
|
12 |
|
|
|
20 |
|
|
|
23 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(3 |
) |
Adjusted gross margin |
$ |
30 |
|
|
$ |
35 |
|
|
$ |
51 |
|
|
$ |
98 |
|
Adjusted gross margin as a percent of net sales |
|
30.6 |
% |
|
|
33.7 |
% |
|
|
24.1 |
% |
|
|
37.3 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
68 |
|
|
$ |
62 |
|
|
$ |
44 |
|
|
$ |
105 |
|
Gross margin per nutrient ton(1) |
|
198 |
|
|
|
181 |
|
|
|
128 |
|
|
|
306 |
|
Adjusted gross margin per product ton |
|
88 |
|
|
|
95 |
|
|
|
70 |
|
|
|
132 |
|
Adjusted gross margin per nutrient ton(1) |
|
259 |
|
|
|
276 |
|
|
|
204 |
|
|
|
384 |
|
___________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of first half 2024 to first half 2023:
- AN sales volume for 2024 approximated 2023 sales volumes.
- AN average selling prices decreased for 2024 compared to 2023 as lower global energy costs reduced the global market clearing price required to meet global demand.
- AN adjusted gross margin per ton decreased for 2024 compared to 2023 due primarily to lower average selling prices partially offset by lower maintenance costs and lower realized natural gas costs.
Other Segment
CF Industries’ Other segment primarily includes diesel exhaust fluid (DEF), urea liquor and nitric acid.
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
Net sales |
$ |
133 |
|
|
$ |
138 |
|
|
$ |
255 |
|
|
$ |
289 |
|
Cost of sales |
|
67 |
|
|
|
76 |
|
|
|
151 |
|
|
|
168 |
|
Gross margin |
$ |
66 |
|
|
$ |
62 |
|
|
$ |
104 |
|
|
$ |
121 |
|
Gross margin percentage |
|
49.6 |
% |
|
|
44.9 |
% |
|
|
40.8 |
% |
|
|
41.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Sales volume by product tons (000s) |
|
557 |
|
|
|
560 |
|
|
|
1,070 |
|
|
|
1,084 |
|
Sales volume by nutrient tons (000s)(1) |
|
109 |
|
|
|
110 |
|
|
|
208 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
||||||||
Average selling price per product ton |
$ |
239 |
|
|
$ |
246 |
|
|
$ |
238 |
|
|
$ |
267 |
|
Average selling price per nutrient ton(1) |
|
1,220 |
|
|
|
1,255 |
|
|
|
1,226 |
|
|
|
1,357 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
Gross margin |
$ |
66 |
|
|
$ |
62 |
|
|
$ |
104 |
|
|
$ |
121 |
|
Depreciation and amortization |
|
13 |
|
|
|
17 |
|
|
|
33 |
|
|
|
33 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(7 |
) |
Adjusted gross margin |
$ |
78 |
|
|
$ |
79 |
|
|
$ |
135 |
|
|
$ |
147 |
|
Adjusted gross margin as a percent of net sales |
|
58.6 |
% |
|
|
57.2 |
% |
|
|
52.9 |
% |
|
|
50.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Gross margin per product ton |
$ |
118 |
|
|
$ |
111 |
|
|
$ |
97 |
|
|
$ |
112 |
|
Gross margin per nutrient ton(1) |
|
606 |
|
|
|
564 |
|
|
|
500 |
|
|
|
568 |
|
Adjusted gross margin per product ton |
|
140 |
|
|
|
141 |
|
|
|
126 |
|
|
|
136 |
|
Adjusted gross margin per nutrient ton(1) |
|
716 |
|
|
|
718 |
|
|
|
649 |
|
|
|
690 |
|
___________________________________________________ |
|
(1) |
Nutrient tons represent the tons of nitrogen within the product tons. |
(2) |
Adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton are non-GAAP financial measures. Adjusted gross margin is defined as gross margin excluding depreciation and amortization and unrealized net mark-to-market (gain) loss on natural gas derivatives. A reconciliation of adjusted gross margin, adjusted gross margin as a percent of net sales and adjusted gross margin per product ton and per nutrient ton to gross margin, the most directly comparable GAAP measure, is provided in the table above. See “Note Regarding Non-GAAP Financial Measures” in this release. |
Comparison of first half 2024 to first half 2023:
- Other sales volume for 2024 approximated 2023 sales volumes.
- Other average selling prices decreased for 2024 compared to 2023 as lower global energy costs reduced the global market clearing price required to meet global demand.
- Other adjusted gross margin per ton decreased for 2024 compared to 2023 due primarily to lower average selling prices partially offset by lower realized natural gas costs.
Dividend Payment
On July 10, 2024, CF Industries’ Board of Directors declared a quarterly dividend of
Conference Call
CF Industries will hold a conference call to discuss its second quarter and first half 2024 results at 11:00 a.m. ET on Thursday, August 8, 2024. This conference call will include discussion of CF Industries’ business environment and outlook. Investors can access the call and find dial-in information on the Investor Relations section of the Company’s website at www.cfindustries.com.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed and fuel the world sustainably. With our employees focused on safe and reliable operations, environmental stewardship, and disciplined capital and corporate management, we are on a path to decarbonize our ammonia production network – the world’s largest – to enable green and low-carbon hydrogen and nitrogen products for energy, fertilizer, emissions abatement and other industrial activities. Our manufacturing complexes in
Note Regarding Non-GAAP Financial Measures
The Company reports its financial results in accordance with
Safe Harbor Statement
All statements in this communication by CF Industries Holdings, Inc. (together with its subsidiaries, the “Company”), other than those relating to historical facts, are forward-looking statements. Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or “would” and similar terms and phrases, including references to assumptions. Forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These statements may include, but are not limited to, statements about the synergies and other benefits, and other aspects of the transactions with Incitec Pivot Limited (“IPL”), strategic plans and management’s expectations with respect to the production of green and low-carbon ammonia, the development of carbon capture and sequestration projects, the transition to and growth of a hydrogen economy, greenhouse gas reduction targets, projected capital expenditures, statements about future financial and operating results, and other items described in this communication.
Important factors that could cause actual results to differ materially from those in the forward-looking statements include, among others, the risk of obstacles to realization of the benefits of the transactions with IPL; the risk that the synergies from the transactions with IPL may not be fully realized or may take longer to realize than expected; the risk that the completion of the transactions with IPL, including integration of the
More detailed information about factors that may affect the Company’s performance and could cause actual results to differ materially from those in any forward-looking statements may be found in CF Industries Holdings, Inc.’s filings with the Securities and Exchange Commission, including CF Industries Holdings, Inc.’s most recent annual and quarterly reports on Form 10-K and Form 10-Q, which are available in the Investor Relations section of the Company’s web site. It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events, plans or goals anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on our business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements are given only as of the date of this communication and the Company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CF INDUSTRIES HOLDINGS, INC. |
|||||||||||||||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in millions, except per share amounts) |
||||||||||||||
Net sales |
$ |
1,572 |
|
|
$ |
1,775 |
|
|
$ |
3,042 |
|
|
$ |
3,787 |
|
Cost of sales |
|
893 |
|
|
|
971 |
|
|
|
1,954 |
|
|
|
2,120 |
|
Gross margin |
|
679 |
|
|
|
804 |
|
|
|
1,088 |
|
|
|
1,667 |
|
Selling, general and administrative expenses |
|
76 |
|
|
|
71 |
|
|
|
164 |
|
|
|
145 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Acquisition and integration costs |
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
16 |
|
Other operating—net |
|
(39 |
) |
|
|
3 |
|
|
|
(22 |
) |
|
|
(32 |
) |
Total other operating costs and expenses |
|
38 |
|
|
|
77 |
|
|
|
146 |
|
|
|
131 |
|
Equity in (losses) earnings of operating affiliate |
|
(3 |
) |
|
|
7 |
|
|
|
(1 |
) |
|
|
24 |
|
Operating earnings |
|
638 |
|
|
|
734 |
|
|
|
941 |
|
|
|
1,560 |
|
Interest expense |
|
37 |
|
|
|
36 |
|
|
|
74 |
|
|
|
76 |
|
Interest income |
|
(28 |
) |
|
|
(40 |
) |
|
|
(58 |
) |
|
|
(70 |
) |
Other non-operating—net |
|
— |
|
|
|
(2 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
Earnings before income taxes |
|
629 |
|
|
|
740 |
|
|
|
929 |
|
|
|
1,559 |
|
Income tax provision |
|
123 |
|
|
|
134 |
|
|
|
185 |
|
|
|
303 |
|
Net earnings |
|
506 |
|
|
|
606 |
|
|
|
744 |
|
|
|
1,256 |
|
Less: Net earnings attributable to noncontrolling interest |
|
86 |
|
|
|
79 |
|
|
|
130 |
|
|
|
169 |
|
Net earnings attributable to common stockholders |
$ |
420 |
|
|
$ |
527 |
|
|
$ |
614 |
|
|
$ |
1,087 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
2.30 |
|
|
$ |
2.71 |
|
|
$ |
3.31 |
|
|
$ |
5.56 |
|
Diluted |
$ |
2.30 |
|
|
$ |
2.70 |
|
|
$ |
3.31 |
|
|
$ |
5.55 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
182.7 |
|
|
|
194.6 |
|
|
|
185.1 |
|
|
|
195.4 |
|
Diluted |
|
182.8 |
|
|
|
195.0 |
|
|
|
185.5 |
|
|
|
195.9 |
|
CF INDUSTRIES HOLDINGS, INC. |
|||||
SELECTED FINANCIAL INFORMATION |
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
|
(unaudited) |
|
|
||
|
June 30,
|
|
December 31,
|
||
|
(in millions) |
||||
Assets |
|
|
|
||
Current assets: |
|
|
|
||
Cash and cash equivalents |
$ |
1,819 |
|
$ |
2,032 |
Accounts receivable—net |
|
531 |
|
|
505 |
Inventories |
|
302 |
|
|
299 |
Prepaid income taxes |
|
85 |
|
|
167 |
Other current assets |
|
64 |
|
|
47 |
Total current assets |
|
2,801 |
|
|
3,050 |
Property, plant and equipment—net |
|
6,830 |
|
|
7,141 |
Investment in affiliate |
|
25 |
|
|
26 |
Goodwill |
|
2,493 |
|
|
2,495 |
Intangible assets—net |
|
522 |
|
|
538 |
Operating lease right-of-use assets |
|
241 |
|
|
259 |
Other assets |
|
863 |
|
|
867 |
Total assets |
$ |
13,775 |
|
$ |
14,376 |
|
|
|
|
||
Liabilities and Equity |
|
|
|
||
Current liabilities: |
|
|
|
||
Accounts payable and accrued expenses |
$ |
501 |
|
$ |
520 |
Income taxes payable |
|
— |
|
|
12 |
Customer advances |
|
8 |
|
|
130 |
Current operating lease liabilities |
|
78 |
|
|
96 |
Other current liabilities |
|
9 |
|
|
42 |
Total current liabilities |
|
596 |
|
|
800 |
Long-term debt |
|
2,970 |
|
|
2,968 |
Deferred income taxes |
|
926 |
|
|
999 |
Operating lease liabilities |
|
171 |
|
|
168 |
Supply contract liability |
|
739 |
|
|
754 |
Other liabilities |
|
271 |
|
|
314 |
Equity: |
|
|
|
||
Stockholders’ equity |
|
5,460 |
|
|
5,717 |
Noncontrolling interest |
|
2,642 |
|
|
2,656 |
Total equity |
|
8,102 |
|
|
8,373 |
Total liabilities and equity |
$ |
13,775 |
|
$ |
14,376 |
CF INDUSTRIES HOLDINGS, INC. |
|||||||||||||||
SELECTED FINANCIAL INFORMATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in millions) |
||||||||||||||
Operating Activities: |
|
|
|
|
|
|
|
||||||||
Net earnings |
$ |
506 |
|
|
$ |
606 |
|
|
$ |
744 |
|
|
$ |
1,256 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
222 |
|
|
|
221 |
|
|
|
475 |
|
|
|
427 |
|
Deferred income taxes |
|
(59 |
) |
|
|
(27 |
) |
|
|
(70 |
) |
|
|
(53 |
) |
Stock-based compensation expense |
|
6 |
|
|
|
7 |
|
|
|
19 |
|
|
|
19 |
|
Unrealized net gain on natural gas derivatives |
|
(1 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
(72 |
) |
Gain on sale of emission credits |
|
(47 |
) |
|
|
(1 |
) |
|
|
(47 |
) |
|
|
(36 |
) |
Loss on disposal of property, plant and equipment |
|
1 |
|
|
|
1 |
|
|
|
6 |
|
|
|
1 |
|
Undistributed losses of affiliate—net of taxes |
|
3 |
|
|
|
7 |
|
|
|
1 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable—net |
|
5 |
|
|
|
97 |
|
|
|
(45 |
) |
|
|
198 |
|
Inventories |
|
(26 |
) |
|
|
101 |
|
|
|
(6 |
) |
|
|
140 |
|
Accrued and prepaid income taxes |
|
2 |
|
|
|
13 |
|
|
|
63 |
|
|
|
166 |
|
Accounts payable and accrued expenses |
|
(3 |
) |
|
|
(3 |
) |
|
|
(26 |
) |
|
|
(138 |
) |
Customer advances |
|
(97 |
) |
|
|
(275 |
) |
|
|
(122 |
) |
|
|
(220 |
) |
Other—net |
|
(37 |
) |
|
|
(35 |
) |
|
|
(38 |
) |
|
|
(29 |
) |
Net cash provided by operating activities |
|
475 |
|
|
|
712 |
|
|
|
920 |
|
|
|
1,659 |
|
Investing Activities: |
|
|
|
|
|
|
|
||||||||
Additions to property, plant and equipment |
|
(84 |
) |
|
|
(95 |
) |
|
|
(182 |
) |
|
|
(164 |
) |
Purchase of |
|
2 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Proceeds from sale of property, plant and equipment |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
Proceeds from sale of investments held in nonqualified employee benefit trust |
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Purchase of emission credits |
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
Proceeds from sale of emission credits |
|
47 |
|
|
|
1 |
|
|
|
47 |
|
|
|
36 |
|
Net cash used in investing activities |
|
(34 |
) |
|
|
(93 |
) |
|
|
(134 |
) |
|
|
(127 |
) |
Financing Activities: |
|
|
|
|
|
|
|
||||||||
Dividends paid on common stock |
|
(91 |
) |
|
|
(79 |
) |
|
|
(188 |
) |
|
|
(158 |
) |
Distributions to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
|
(255 |
) |
Purchases of treasury stock |
|
(305 |
) |
|
|
(151 |
) |
|
|
(644 |
) |
|
|
(205 |
) |
Proceeds from issuances of common stock under employee stock plans |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Cash paid for shares withheld for taxes |
|
— |
|
|
|
— |
|
|
|
(23 |
) |
|
|
(22 |
) |
Net cash used in financing activities |
|
(396 |
) |
|
|
(229 |
) |
|
|
(998 |
) |
|
|
(639 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
1 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
3 |
|
Increase (decrease) in cash and cash equivalents |
|
46 |
|
|
|
394 |
|
|
|
(213 |
) |
|
|
896 |
|
Cash and cash equivalents at beginning of period |
|
1,773 |
|
|
|
2,825 |
|
|
|
2,032 |
|
|
|
2,323 |
|
Cash and cash equivalents at end of period |
$ |
1,819 |
|
|
$ |
3,219 |
|
|
$ |
1,819 |
|
|
$ |
3,219 |
|
CF INDUSTRIES HOLDINGS, INC. |
SELECTED FINANCIAL INFORMATION |
NON-GAAP DISCLOSURE ITEMS |
Reconciliation of net cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):
Free cash flow is defined as net cash provided by operating activities, as stated in the consolidated statements of cash flows, reduced by capital expenditures and distributions to noncontrolling interest. The Company has presented free cash flow because management uses this measure and believes it is useful to investors, as an indication of the strength of the Company and its ability to generate cash and to evaluate the Company’s cash generation ability relative to its industry competitors. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
|
Twelve months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(in millions) |
||||||
Net cash provided by operating activities(1) |
$ |
2,018 |
|
|
$ |
3,234 |
|
Capital expenditures |
|
(517 |
) |
|
|
(488 |
) |
Distributions to noncontrolling interest |
|
(348 |
) |
|
|
(627 |
) |
Free cash flow(1) |
$ |
1,153 |
|
|
$ |
2,119 |
|
___________________________________________________ |
|
(1) |
For the twelve months ended June 30, 2023, net cash provided by operating activities and free cash flow includes the impact of |
CF INDUSTRIES HOLDINGS, INC. |
SELECTED FINANCIAL INFORMATION |
NON-GAAP DISCLOSURE ITEMS (CONTINUED) |
Reconciliation of net earnings attributable to common stockholders and net earnings attributable to common stockholders per ton (GAAP measures) to EBITDA, EBITDA per ton, adjusted EBITDA and adjusted EBITDA per ton (non-GAAP measures), as applicable:
EBITDA is defined as net earnings attributable to common stockholders plus interest expense—net, income taxes and depreciation and amortization. Other adjustments include the elimination of loan fee amortization that is included in both interest and amortization, and the portion of depreciation that is included in noncontrolling interest.
The Company has presented EBITDA and EBITDA per ton because management uses these measures to track performance and believes that they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the industry.
Adjusted EBITDA is defined as EBITDA adjusted with the selected items as summarized in the table below. The Company has presented adjusted EBITDA and adjusted EBITDA per ton because management uses these measures, and believes they are useful to investors, as supplemental financial measures in the comparison of year-over-year performance.
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(in millions) |
||||||||||||||
Net earnings |
$ |
506 |
|
|
$ |
606 |
|
|
$ |
744 |
|
|
$ |
1,256 |
|
Less: Net earnings attributable to noncontrolling interest |
|
(86 |
) |
|
|
(79 |
) |
|
|
(130 |
) |
|
|
(169 |
) |
Net earnings attributable to common stockholders |
|
420 |
|
|
|
527 |
|
|
|
614 |
|
|
|
1,087 |
|
Interest expense (income)—net |
|
9 |
|
|
|
(4 |
) |
|
|
16 |
|
|
|
6 |
|
Income tax provision |
|
123 |
|
|
|
134 |
|
|
|
185 |
|
|
|
303 |
|
Depreciation and amortization |
|
222 |
|
|
|
221 |
|
|
|
475 |
|
|
|
427 |
|
Less other adjustments: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization in noncontrolling interest |
|
(21 |
) |
|
|
(22 |
) |
|
|
(48 |
) |
|
|
(42 |
) |
Loan fee amortization(1) |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
EBITDA |
|
752 |
|
|
|
855 |
|
|
|
1,240 |
|
|
|
1,779 |
|
Unrealized net mark-to-market gain on natural gas derivatives |
|
(1 |
) |
|
|
— |
|
|
|
(34 |
) |
|
|
(72 |
) |
(Gain) loss on foreign currency transactions, including intercompany loans |
|
— |
|
|
|
(1 |
) |
|
|
1 |
|
|
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Acquisition and integration costs |
|
1 |
|
|
|
3 |
|
|
|
4 |
|
|
|
16 |
|
Total adjustments |
|
— |
|
|
|
2 |
|
|
|
(29 |
) |
|
|
(56 |
) |
Adjusted EBITDA |
$ |
752 |
|
|
$ |
857 |
|
|
$ |
1,211 |
|
|
$ |
1,723 |
|
|
|
|
|
|
|
|
|
||||||||
Net sales |
$ |
1,572 |
|
|
$ |
1,775 |
|
|
$ |
3,042 |
|
|
$ |
3,787 |
|
Sales volume by product tons (000s) |
|
4,875 |
|
|
|
4,938 |
|
|
|
9,399 |
|
|
|
9,473 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings attributable to common stockholders per ton |
$ |
86.15 |
|
|
$ |
106.72 |
|
|
$ |
65.33 |
|
|
$ |
114.75 |
|
EBITDA per ton |
$ |
154.26 |
|
|
$ |
173.15 |
|
|
$ |
131.93 |
|
|
$ |
187.80 |
|
Adjusted EBITDA per ton |
$ |
154.26 |
|
|
$ |
173.55 |
|
|
$ |
128.84 |
|
|
$ |
181.89 |
|
___________________________________________________ |
|
(1) |
Loan fee amortization is included in both interest expense (income)—net and depreciation and amortization. |
CF INDUSTRIES HOLDINGS, INC. |
SELECTED FINANCIAL INFORMATION |
ITEMS AFFECTING COMPARABILITY OF RESULTS |
For the three months ended June 30, 2024 and 2023, we reported net earnings attributable to common stockholders of
|
Three months ended
|
|
Six months ended
|
||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||
|
Pre-Tax |
After-Tax |
|
Pre-Tax |
After-Tax |
|
Pre-Tax |
After-Tax |
|
Pre-Tax |
After-Tax |
||||||||||||||||
|
(in millions) |
||||||||||||||||||||||||||
Unrealized net mark-to-market gain on natural gas derivatives(1) |
$ |
(1 |
) |
$ |
(1 |
) |
|
$ |
— |
|
$ |
— |
|
|
$ |
(34 |
) |
$ |
(26 |
) |
|
$ |
(72 |
) |
$ |
(56 |
) |
(Gain) loss on foreign currency transactions, including intercompany loans(2) |
|
— |
|
|
— |
|
|
|
(1 |
) |
|
— |
|
|
|
1 |
|
|
1 |
|
|
|
(2 |
) |
|
(1 |
) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
2 |
|
|
2 |
|
Acquisition and integration costs |
|
1 |
|
|
1 |
|
|
|
3 |
|
|
2 |
|
|
4 |
|
|
3 |
|
|
|
16 |
|
|
12 |
|
|
___________________________________________________ |
|
(1) |
Included in cost of sales in our consolidated statements of operations. |
(2) |
Included in other operating—net in our consolidated statements of operations. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807038881/en/
Media
Chris Close
Senior Director, Corporate Communications
847-405-2542 - cclose@cfindustries.com
Investors
Darla Rivera
Director, Investor Relations
847-405-2045 - darla.rivera@cfindustries.com
Source: CF Industries Holdings, Inc
FAQ
What were the net earnings of CF Industries in H1 2024?
What was the adjusted EBITDA for CF Industries in H1 2024?
How much did CF Industries return to shareholders in H1 2024?
How many shares did CF Industries repurchase in Q2 2024?
What is the expected full-year gross ammonia production for CF Industries in 2024?
