Next year, Nutrien’s phosphate business may have a different path forward than its current business division within the world’s largest potash producer.
“We have initiated a review of strategic alternatives for our phosphate business. This process will include evaluating alternatives ranging from reconfiguring operations, strategic partnerships, or a potential sale,” said Nutrien CEO Ken Seitz. “We intend to solidify the optimal path forward for our phosphate business in 2026.”
The company currently mines and processes phosphates in Aurora, NC and White Springs, Florida.
“We continue to assess assets on the merits of strategic fit, return, and free cash flow contribution. As a result, we have initiated a review of strategic alternatives for our phosphate business. This process will include evaluating alternatives ranging from reconfiguring operations, strategic partnerships, or a potential sale,” Seitz said.
The announcement was made last Wednesday during the company’s third quarter investor call. They emphasized a strategy to streamline their business-- simplify the portfolio and review non-core assets.
“It’s [phosphate] only contributing about 6% of our EBITDA,” Seitz said, “As we looked at it, it compels us to do a strategic review. Of course, this is on the heels of some of the portfolio work that we’ve been doing, disposing of our Sinofert shares, the process that we’re in to close Profertil by the end of the year, and other non-core assets. That’s all adding up to about $900 million to date.”
For the third quarter, Nutrien generated adjusted EBITDA of $122 million from phosphates, and the company had an 88% operating rate giving credit to reliability and turnaround activities completed in the first half of the year.
This announcement is also in conjunction with the company’s effort on cost discipline.
“As previously communicated, we are on track to achieve our $200 million cost reduction target one year ahead of schedule,” said Seitz.
During the call, company leaders boasted achievements including being the lowest cost potash supplier and increasing reliability initiatives across its nitrogen business.
Also announced in the call the ag retail division will have a transition at the beginning of the year as Jeff Tarsi will be retiring, and Chris Reynolds, who has been with the company for more than 20 years, will take over leading the ag retail business.
