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CF Industries Posts Strong Operating Results in 2Q15

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2Q15 highlights

On August 5, 2015, CF Industries announced its results for its fiscal second quarter ended June 30, 2015. The company showed strong operating results with a record safety incident rate. Its 12-month rolling average recordable incident rate was 0.89 incidents per 200,000 work hours, the company’s lowest level ever. The most recently available three-year average for the company’s broad set of peer chemical companies is 2.8 incidents per 200,000 work hours.

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Tony Will, the company’s president and chief executive officer, stated, “The safety of our employees, contractors and the communities in which we do business is our first thought each day. We remain committed to building on the progress we’ve made and ensuring that each of us lives our culture of safety.”

 

 

The company reported earnings before interest, tax, depreciation, and amortization (or EBITDA) of $670 million and net earnings attributable to common stockholders of $352 million, or $1.49 per diluted share. In the corresponding quarter in 2014, the company had an EBITDA of $613 million and net earnings attributable to common stockholders of $313 million, or $1.22 per diluted share.

CF Industries executed a five-for-one share split on June 17, 2015. It also repurchased 4.8 million shares since the start of the second quarter, and has 233 million shares outstanding.

Year-to-date highlights

  • The company reported EBITDA of $1.16 billion.
  • The company posted net earnings of $583 million or $2.44 per diluted share.
  • The company has repurchased 8.9 million shares since the beginning of 2015.
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Management’s statement

Tony Will was optimistic about the company’s 2Q15 results: “Solid execution by our sales team and in our production facilities and distribution network led to the strong results for the quarter.” He continued, “Our financial results for the first half of 2015 demonstrate the sustainability of our cash generation capacity, even in a supply-driven, competitive global market.”

CF Industries declares a quarterly dividend

On July 23, 2015, CF Industries’ board of directors declared a quarterly dividend of $0.30 per common share. The dividend will be paid on August 31, 2015, to stockholders of record as of August 14, 2015.

The company’s industry rivals include Agrium (AGU) and the Mosaic Company (MOS). Agrium recorded a positive year-to-date return of 7.35%, while the Mosaic Company recorded -4.60%. The SPDR S&P 500 ETF Trust (SPY) invests 0.08% of its holdings in MOS, while the Materials Select Sector SPDR Fund (XLB) invests 2.61% of its holdings in MOS.

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