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How CF Industries’ Shipments Grew in 4Q17

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CF’s shipments

Shipments and selling prices are two drivers of sales for CF Industries (CF) as well as for Nutrien (NTR), Mosaic (MOS), and Terra Nitrogen (TNH). CF Industries’ overall shipments from all segments grew 13.0% year-over-year to 5.3 million metric tons from 4.7 million metric tons in 4Q16.

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Growth by segments

During 4Q17, CF Industries’ Ammonia segment grew 58.0% year-over-year to 1.2 million metric tons. According to the company, the shipment volume for this segment increased as a result of additional volumes from its Donaldsonville and Port Neal facilities. In addition, the sales volume rose due to increase in demand for nitrogen products (MOO) for fall application.

The Granular Urea segment’s shipments increased 14.0% year-over-year to 1.0 million metric tons from 883,000 metric tons. Like the Ammonia segment, the Granular Urea segment’s shipments increased due to additional production from the Port Neal facility.

The AN (Ammonium Nitrate) segment shipments also increased 6.0% over the same period to 576,000 metric tons during the quarter. This increase was a result of higher demand from agricultural and industrial customers.

The Other segment’s shipments increased 27.0% to 573,000 metric tons. This segment’s shipments increased primarily from growth in DEF (diesel exhaust fluid) shipments during the quarter.

In contrast to these four segments, the UAN (urea ammonium nitrate) segment’s shipments declined 6.0% year-over-year to 1.9 million metric tons. This segment’s shipments declined due to lower export sales according to the company.

Next, we’ll look at the average selling prices for CF Industries.

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