(Reuters) -Nutrien decreased to Wall Street’s expectations for the first quarter profits on Wednesday, as the best potash product was affected by low prices and high energy costs.
Trade tensions between the United States and China after US President Donald Trump’s tariff led to fluctuations in crop prices over the past few months, prompting farmers to rule costs, which in turn caused the demand for fertilizers.
The price of the Potass separation in North America decreased by 21.6 % from the previous year to $ 243 per ton, while the amended basic profit for the sector decreased by 16 % to $ 446 million.
The high energy costs in the nitrogen sector pressed the profits in the quarter, which sparked the cost of goods that are sold by about 10 % at $ 663 million.
The average basic profit decreased by about 12 % to $ 408 million.
The average natural gas prices have risen over the past few quarters and rise to the highest level on March 10, with the support of the strong demand from liquefied natural gas export facilities and fears of the offer in the summer season.
Nutrien’s quarterly profits were also affected by the delay in field activity due to wet weather conditions in North America and strategic measures in South America.
The quarterly sales of crop nutrients decreased by 8.7 % to $ 1.19 billion, while sales of crop protection products decreased by 12.7 % to 972 million dollars.
Earlier this year, the Brazilian unit at Nutrien said it would sell fertilizer mixing factories in the country amid a shift in focusing on the resale of agricultural inputs through local retail dealers after acquisitions and investments failed to achieve expected returns.
The Saskaton -based company, Canada, has recorded modified profits of 11 cents per share for the quarter ending on March 31, compared to the average estimate of analysts of 31 cents per share, according to the data collected by LSEG.
(Reportey by Dhud Dhull in Bangallow;
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