CF Industries Holdings Inc (CF) Reports Net Earnings of $1.25 Billion for First Nine Months of 2023
CF Industries Holdings Inc (NYSE:CF) reported net earnings of $1.25 billion for the first nine months of 2023.
The company's adjusted EBITDA for the same period stood at $2.17 billion.
CF Industries also reported net earnings of $164 million for the third quarter of 2023.
The company repurchased 1.9 million shares for $150 million during the third quarter of 2023.
On November 1, 2023, CF Industries Holdings Inc (NYSE:CF), a leading global manufacturer of hydrogen and nitrogen products, announced its financial results for the first nine months and third quarter ended September 30, 2023.
Financial Performance Highlights
For the first nine months of 2023, CF Industries reported net earnings of $1.25 billion, or $6.42 per diluted share, EBITDA of $2.15 billion, and adjusted EBITDA of $2.17 billion. The company's net sales for the same period were $5.06 billion. The average cost of natural gas reflected in the company's cost of sales was $3.90 per MMBtu in the first nine months of 2023.
For the third quarter of 2023, the company reported net earnings of $164 million, or $0.85 per diluted share, EBITDA of $372 million, and adjusted EBITDA of $445 million. Net sales for the quarter were $1.27 billion. The average cost of natural gas reflected in the company's cost of sales was $2.54 per MMBtu in the third quarter of 2023.
Share Repurchase and Capital Expenditures
During the third quarter of 2023, CF Industries repurchased 1.9 million shares for $150 million. The company's capital expenditures for the first nine months of 2023 were $311 million. Management projects capital expenditures for the full year 2023 to be in the range of $450-$500 million.
Strategic Initiatives and Market Outlook
CF Industries continues to execute strategic initiatives focused on advancing its clean energy growth platform and achieving its decarbonization commitments. The company also signed an agreement with POSCO Holdings, Inc., to evaluate a joint venture to construct a low-carbon clean ammonia plant at CF Industries Blue Point Complex in Ascension Parish, Louisiana, United States.
Management expects demand through the end of 2023 and into 2024 to remain strong, led by India and Brazil. The global nitrogen supply-demand balance is expected to remain positive, underpinned by resilient agriculture-led demand and forward energy curves that indicate a steep cost curve.
Operations Overview
The company continues to operate safely and efficiently across its network. Gross ammonia production for the first nine months and third quarter of 2023 was approximately 7.0 million and 2.2 million tons, respectively. The company expects that gross ammonia production for 2023 will be in a range of 9.0-9.5 million tons.
Explore the complete 8-K earnings release (here) from CF Industries Holdings Inc for further details.
This article first appeared on GuruFocus.
