Nutrien Cuts Potash Production in Province as B.C Port Strike Impacts Exports

July 11, 2023

1 minute read

Nutrien Ltd (NTR.TO) announced on Tuesday that it has implemented production cuts at its Cory potash mine and anticipates a decline in core earnings below its projected range. The reduction in offshore sales, caused by disruptions at the Canpotex terminal, has led to this outcome.

In premarket trading, the company’s U.S.-listed shares saw a 1% decrease, reaching $58.76. Nutrien attributes this decline to the strike that occurred at the Port of Vancouver, which has resulted in a loss of export capacity through Canpotex’s Neptune terminal. It is important to note that if the strike persists, it could further impact production at mines in Saskatchewan.

Due to lower global potash prices than initially anticipated, the strike, and the Portland terminal outage, Nutrien now expects its adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) for 2023 to fall below the lower end of its guidance range, which was projected to be between $2.65 billion and $3.35 billion. The company intends to provide an updated forecast during the release of its second-quarter results scheduled for August 2.

The strike, which began on July 1, involves approximately 7,500 port workers demanding higher wages. This labor action has disrupted operations at both the Port of Vancouver and the Port of Prince Rupert, two crucial gateways for exporting Canada’s natural resources and commodities, as well as for importing raw materials.

Scott Moe recently took to social media to express his concerns over the strike, urging the Federal government to act now.