Nutrien to shut down Trinidad nitrogen operations due to supply issues

SASKATOON - Nutrien Ltd. (TSX and NYSE:NTR), a $28 billion market cap agricultural giant with annual revenues exceeding $25 billion, announced Tuesday it will begin a controlled shutdown of its Trinidad nitrogen operations at the Point Lisas facility effective October 23, 2025. According to InvestingPro data, the company maintains a strong financial health score, reflecting its position as a prominent player in the chemicals industry.

The fertilizer producer cited port access restrictions imposed by Trinidad and Tobago’s National Energy Corporation (NEC) and unreliable, uneconomical natural gas supply as reasons for the closure. These issues have reduced the free cash flow contribution from the Trinidad operations over an extended period, according to the company’s press release statement. Despite these challenges, Nutrien maintains robust financials with $1.8 billion in levered free cash flow over the last twelve months.

The Trinidad facility currently produces approximately 85,000 tonnes of ammonia and 55,000 tonnes of urea per month. Despite the shutdown, Nutrien expects to maintain its 2025 annual nitrogen sales volume guidance range of 10.7 to 11.2 million tonnes, attributing this to strong performance from its North American nitrogen operations.

Nutrien indicated it will continue engaging with stakeholders and assessing options regarding its Trinidad operations. The company did not specify how many employees might be affected by the shutdown or whether the closure is permanent.

Nutrien, headquartered in Saskatchewan, describes itself as a global provider of crop inputs and services with operations across the agricultural value chain.

In other recent news, Nutrien has announced an agreement to sell its 50% stake in Argentina-based nitrogen producer Profertil for approximately $600 million. The transaction is anticipated to close by the end of 2025, subject to customary conditions. In earnings news, Nutrien reported second-quarter earnings per share of $2.65, which exceeded consensus estimates by $0.23 and surpassed Jefferies’ forecast by $0.17. On the analyst front, JPMorgan upgraded Nutrien from Neutral to Overweight, citing favorable conditions in the fertilizer market and raising its price target to $68.00. Conversely, BofA Securities downgraded Nutrien from Buy to Neutral due to concerns about the sustainability of the fertilizer price rally, specifically in the ammonia and potash markets. Jefferies also adjusted its outlook, lowering its price target to $60.00 following the Profertil stake sale announcement. However, Jefferies maintained a Hold rating on the stock despite the mixed outlook. These developments highlight a range of perspectives on Nutrien’s future performance in the market.

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