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Nutrien (NTR) to Build World's Largest Clean Ammonia Plant

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Nutrien Ltd. NTR announced that it is evaluating the construction of the world’s largest clean ammonia facility at Geismar, LA.

The company will produce clean ammonia by leveraging its expertise in low-carbon ammonia production. Nutrien will utilize innovative technology to achieve at least a 90% reduction in CO2 emissions. The project is expected to move to the front-end engineering design (FEED) phase, with a final investment decision expected in 2023. The construction of the $2-billion facility is expected to start in 2024, with full production projected by 2027 on approval.

The new plant would utilize low-cost natural gas, tidewater access to world markets and high-quality carbon capture and sequestration infrastructure at its current Geismar facility to serve growing demand in agriculture, industrial and emerging energy markets.

The new facility is expected to have an annual production capacity of 1.2 million metric tons of clean ammonia. The plant will use auto thermal reforming technology to achieve the lowest carbon footprint of any plant at this scale and has the potential to transition to net-zero emissions with future modifications.

Nutrien stated that its commitment to developing and using of low-carbon and clean ammonia is prominent in its strategy to offer solutions that will cater to the world’s decarbonization goals while sustainably addressing global food insecurity.

Shares of Nutrien have rallied 69.3% in the past year compared with a 68.9% surge of the industry.

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In its last earnings call, Nutrien stated that it raised its full-year 2022 adjusted EBITDA guidance and full-year adjusted net earnings per share guidance, factoring in the expectation of higher realized selling prices, higher potash sales volumes and higher Retail crop nutrients and crop protection products gross margins.

The company now expects adjusted EBITDA of $14.5-$16.5 billion (up from $10-$11.2 billion) for full-year 2022. Adjusted EPS has been forecast in the band of $16.20-$18.70 (up from $10.20-$11.80). Nutrien also sees sustaining capital expenditure of $1.2-$1.3 billion in 2022.

The company also now sees potash sales volumes of between 14.5 million and 15.1 million tons in 2022.  Nitrogen sales volumes are now projected in the band of 10.7-11.1 million tons for the year.

Nutrien Ltd. Price and Consensus

 

Nutrien Ltd. Price and Consensus
Nutrien Ltd. Price and Consensus

Nutrien Ltd. price-consensus-chart | Nutrien Ltd. Quote

 

Zacks Rank & Other Key Picks

Nutrien currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Allegheny Technologies Inc. ATI, Albemarle Corporation ALB and Cabot Corporation CBT.

Allegheny has a projected earnings growth rate of 869.2% for the current year. The Zacks Consensus Estimate for ATI's current-year earnings has been revised 27.3% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 128.9%, on average. ATI has gained around 19.5% in a year and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Albemarle has a projected earnings growth rate of 175% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 85.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 22.5%. ALB has gained 49.4% in a year. The company flaunts a Zacks Rank #1.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 21.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 5.2% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 13.7% over a year.


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