(Reuters) -Fertilizer maker CF Industries on Wednesday reported a 68% rise in third-quarter profit, aided by strong prices for nitrogen fertilizers.
Benchmark ammonia prices reached to about $530 per ton in September from $410 per ton at the end of June, aided by production shut-ins in Trinidad and Egypt.
Prices of natural gas, a key feedstock for nitrogen fertilizers, remained subdued during much of the quarter, helping CF Industries’ margins.
During the third quarter, the average cost of natural gas was $2.10 per million British thermal unit (mmbtu), compared to $2.54 per mmbtu last year, the company said.
The company’s ammonia production volumes rose 8.7% during the third quarter, helped by its acquisition of the Waggaman facility in Louisiana.
CF Industries, which makes ammonia and urea, posted an adjusted third-quarter core profit of $511 million, higher than Wall Street estimates of $509 million, according to data compiled by LSEG.
“Global production is expected to remain constrained by continued challenges related to cost and availability of natural gas,” the company said.
It also said that urea exports from Russia have increased by 5% in 2024, aided by a rise in production capacity and willingness of countries like the United States and Brazil to purchase Russian fertilizers.
The United States does not impose sanctions directly on Russian fertilizer, which is important to global food supplies and prices.
The company also said that exports from China, one of the biggest fertilizer producers, have been down 91% compared to last year due to export curbs.
The Northbrook, Illinois-based company reported net earnings of $276 million, or $1.55 per share, for the three months ended Sept. 30, compared with $164 million, or 85 cents per share, last year.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)
