EX-99.3 4 d86630dex993.htm EX-99.3 EX-99.3

Exhibit 99.3

 

 

LOGO

NUTRIEN LTD.

INTERIM FINANCIAL STATEMENTS AND NOTES

AS AT AND FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2025

 

 

 

Unaudited  

 

Condensed Consolidated Financial Statements

Condensed Consolidated Statements of Earnings

 

           Three Months Ended
June 30		     Six Months Ended
June 30		  
 ($ millions, except as otherwise noted)    Note     2025     2024     2025     2024  

 Sales

      2, 8       10,438       10,156       15,538       15,545  

 Freight, transportation and distribution

        240       240       466       478  

 Cost of goods sold

              7,023       7,004       10,577       10,618  

 Gross Margin

        3,175       2,912       4,495       4,449  

 Selling expenses

        951       1,008       1,708       1,802  

 General and administrative expenses

        148       158       300       312  

 Provincial mining taxes

        97       68       165       136  

 Share-based compensation expense

        49       10       91       16  

 Impairment of assets

        -       530       -       530  

 Foreign exchange loss, net of related derivatives

      5       22       285       29       328  

 Other expenses

      3       126       9       194       62  

 Earnings Before Finance Costs and Income Taxes

 

     1,782       844       2,008       1,263  

 Finance costs

              155       162       334       341  

 Earnings Before Income Taxes

        1,627       682       1,674       922  

 Income tax expense

      4       398       290       426       365  

 Net Earnings

              1,229       392       1,248       557  

 Attributable to

           

 Equity holders of Nutrien

        1,221       385       1,232       543  

 Non-controlling interest

              8       7       16       14  

 Net Earnings

              1,229       392       1,248       557  

 Net Earnings Per Share Attributable to Equity Holders of Nutrien (“EPS”)

 

                

 Basic

        2.51       0.78       2.52       1.10  

 Diluted

              2.50       0.78       2.52       1.10  

 Weighted average shares outstanding for basic EPS

        487,396,000       494,646,000       488,391,000       494,608,000  

 Weighted average shares outstanding for diluted EPS

              487,598,000       494,915,000       488,563,000       494,851,000  
Condensed Consolidated Statements of Comprehensive Income

 

           Three Months Ended
June 30		     Six Months Ended
June 30		  
 ($ millions, net of related income taxes)           2025     2024     2025     2024  

 Net Earnings

        1,229       392       1,248       557  

 Other comprehensive income (loss)

           

 Item that will not be reclassified to net earnings:

           

 Net fair value gain (loss) on investments

        -       36       (18 )      18  

 Items that have been or may be subsequently reclassified to net earnings:

           

 Gain (loss) on currency translation of foreign operations

        162       9       201       (57 ) 

 Other

              22       (1 )      26       (19 ) 

 Other Comprehensive Income (Loss)

              184       44       209       (58 ) 

 Comprehensive Income

              1,413       436       1,457       499  

 Attributable to

           

 Equity holders of Nutrien

        1,404       429       1,440       486  

 Non-controlling interest

              9       7       17       13  

 Comprehensive Income

              1,413       436       1,457       499  

 (See Notes to the Condensed Consolidated Financial Statements)

 

23

Unaudited  

 

Condensed Consolidated Statements of Cash Flows

 

           Three Months Ended
June 30		     Six Months Ended
June 30		  
 ($ millions)    Note     2025     2024     2025     2024  

 Operating Activities

           

 Net earnings

        1,229       392       1,248       557  

 Adjustments for:

           

 Depreciation and amortization

        614       586       1,185       1,151  

 Share-based compensation expense

        49       10       91       16  

 Impairment of assets

        -       530       -       530  

 (Recovery of) provision for deferred income tax

        (48 )      23       32       51  

 Net distributed earnings of equity-accounted investees

        90       88       85       38  

 Fair value adjustment to derivatives

      5       2       187       8       186  

 Loss related to financial instruments in Argentina

      3       -       15       -       34  

 Long-term income tax receivables and payables

        54       (35 )      16       8  

 Other long-term assets, liabilities and miscellaneous

              (39 )      5       (40 )      70  

 Cash from operations before working capital changes

        1,951       1,801       2,625       2,641  

 Changes in non-cash operating working capital:

           

 Receivables

        (2,462 )      (2,555 )      (2,605 )      (2,812 ) 

 Inventories and prepaid expenses and other current assets

        2,894       3,222       1,620       1,892  

 Payables and accrued charges

              155       (661 )      (184 )      (401 ) 

 Cash Provided by Operating Activities

              2,538       1,807       1,456       1,320  

 Investing Activities

           

 Capital expenditures 1

        (424 )      (526 )      (724 )      (879 ) 

 Business acquisitions, net of cash acquired

        -       (4 )      (11 )      (4 ) 

 (Purchase of) proceeds from investments, held within three months, net

        (53 )      3       (69 )      (15 ) 

 Purchase of investments

        (91 )      (107 )      (93 )      (111 ) 

 Proceeds from sale of investments

      5       93       18       276       18  

 Net changes in non-cash working capital

        10       5       (78 )      (85 ) 

 Other

              (30 )      (3 )      (39 )      (32 ) 

 Cash Used in Investing Activities

              (495 )      (614 )      (738 )      (1,108 ) 

 Financing Activities

           

 (Repayment of) proceeds from debt, maturing within three months, net

        (578 )      (1,215 )      334       (289 ) 

 Proceeds from debt

      6       -       998       998       998  

 Repayment of debt

      6       (531 )      (75 )      (535 )      (89 ) 

 Repayment of principal portion of lease liabilities

        (106 )      (106 )      (216 )      (202 ) 

 Dividends paid to Nutrien’s shareholders

      7       (268 )      (266 )      (533 )      (527 ) 

 Repurchase of common shares, inclusive of related tax

      7       (105 )      -       (253 )      -  

 Issuance of common shares

        26       8       29       9  

 Other

              (10 )      (28 )      (31 )      (36 ) 

 Cash Used in Financing Activities

              (1,572 )      (684 )      (207 )      (136 ) 

 Effect of Exchange Rate Changes on Cash and Cash Equivalents

              21       (1 )      23       (13 ) 

 Increase in Cash and Cash Equivalents

        492       508       534       63  

 Cash and Cash Equivalents – Beginning of Period

              895       496       853       941  

 Cash and Cash Equivalents – End of Period

              1,387       1,004       1,387       1,004  

 Cash and cash equivalents is composed of:

           

 Cash

        1,228       953       1,228       953  

 Short-term investments

              159       51       159       51  

 

              1,387       1,004       1,387       1,004  

 Supplemental Cash Flows Information

           

 Interest paid

        220       216       352       348  

 Income taxes (received) paid

        (19 )      83       (12 )      133  

 Total cash outflow for leases

              139       153       289       284  

1 Includes additions to property, plant and equipment, and intangible assets for the three months ended June 30, 2025 of $398 million and $26 million (2024 – $491 million and $35 million), respectively, and for the six months ended June 30, 2025 of $677 million and $47 million (2024 – $815 million and $64 million), respectively.

(See Notes to the Condensed Consolidated Financial Statements)

 

24

Unaudited  

Condensed Consolidated Statements of Changes in Shareholders’ Equity

 

                      Accumulated Other Comprehensive
(Loss) Income (“AOCI”)		                          
 ($ millions, inclusive of related tax, except as otherwise
 noted)		   Number of
Common
Shares		     Share
Capital		     Contributed
Surplus		     (Loss) Gain
on Currency
Translation
of Foreign
Operations		     Other     Total
AOCI		     Retained
Earnings		     Equity
Holders
of
Nutrien		     Non-
Controlling
Interest		     Total
Equity		  
           

 Balance – December 31, 2023

     494,551,730       13,838       83       (286 )      (10 )      (296 )      11,531       25,156       45       25,201  
           

 Net earnings

     -       -       -       -       -       -       543       543       14       557  
           

 Other comprehensive loss

     -       -       -       (56 )      (1 )      (57 )      -       (57 )      (1 )      (58 ) 
           

 Dividends declared 1

     -       -       -       -       -       -       (532 )      (532 )      -       (532 ) 
           

 Non-controlling interest transactions

     -       -       -       -       -       -       -       -       (26 )      (26 ) 
           

 Effect of share-based compensation including

   issuance of common shares

     153,808       8       3       -       -       -       -       11       -       11  
           

 Transfer of net loss on cash flow hedges

     -       -       -       -       8       8       -       8       -       8  
           

 Other

     -       -       -       (2 )      -       (2 )      -       (2 )      -       (2 ) 
         

 Balance – June 30, 2024

     494,705,538       13,846       86       (344 )      (3 )      (347 )      11,542       25,127       32       25,159  
           

 Balance – December 31, 2024

     491,025,446       13,748       68       (537 )      22       (515 )      11,106       24,407       35       24,442  
           

 Net earnings

     -       -       -       -       -       -       1,232       1,232       16       1,248  
           

 Other comprehensive income

     -       -       -       200       8       208       -       208       1       209  
           

 Shares repurchased for cancellation (Note 7)

     (4,741,786 )      (133 )      (10 )      -       -       -       (114 )      (257 )      -       (257 ) 
           

 Dividends declared 1

     -       -       -       -       -       -       (533 )      (533 )      -       (533 ) 
           

 Non-controlling interest transactions

     -       -       -       -       -       -       -       -       (21 )      (21 ) 
           

 Effect of share-based compensation including

   issuance of common shares

     581,799       35       (3 )      -       -       -       -       32       -       32  
           

 Transfer of net gain on sale of investment

     -       -       -       -       (27 )      (27 )      27       -       -       -  
           

 Transfer of net loss on cash flow hedges

     -       -       -       -       1       1       -       1       -       1  
           

 Other

     -       -       -       (2 )      -       (2 )      1       (1 )      -       (1 ) 
         

 Balance – June 30, 2025

     486,865,459       13,650       55       (339 )      4       (335 )      11,719       25,089       31       25,120  

1 During the six months ended June 30, 2025, we declared dividends of $1.09 per share (2024 - $1.08 per share).

(See Notes to the Condensed Consolidated Financial Statements)

 

25

Unaudited  

 

Condensed Consolidated Balance Sheets

 

          As at June 30      As at
December 31,		  
 ($ millions)    Note         2025          2024      2024  

 Assets

            

 Current assets

            

 Cash and cash equivalents

         1,387        1,004        853  

 Receivables

    8       8,086        8,123        5,390  

 Inventories

         5,576        5,298        6,148  

 Prepaid expenses and other current assets

           566        663        1,401  
        15,615        15,088        13,792  

 Non-current assets

            

 Property, plant and equipment

         22,496        22,198        22,604  

 Goodwill

         12,121        12,094        12,043  

 Intangible assets

         1,745        1,912        1,819  

 Investments

    5       407        703        698  

 Other assets

           871        996        884  

 Total Assets

           53,255        52,991        51,840  

 Liabilities

            

 Current liabilities

            

 Short-term debt

         1,882        1,571        1,534  

 Current portion of long-term debt

    6       538        1,012        1,037  

 Current portion of lease liabilities

         363        364        356  

 Payables and accrued charges

           8,991        9,024        9,118  
        11,774        11,971        12,045  

 Non-current liabilities

            

 Long-term debt

    6       9,867        9,399        8,881  

 Lease liabilities

         988        1,024        999  

 Deferred income tax liabilities

         3,512        3,615        3,539  

 Pension and other post-retirement benefit liabilities

         232        245        227  

 Asset retirement obligations and accrued environmental costs

         1,536        1,406        1,543  

 Other non-current liabilities

           226        172        164  

 Total Liabilities

           28,135        27,832        27,398  

 Shareholders’ Equity

            

 Share capital

    7       13,650        13,846        13,748  

 Contributed surplus

         55        86        68  

 Accumulated other comprehensive loss

         (335 )       (347 )       (515 ) 

 Retained earnings

           11,719        11,542        11,106  

 Equity holders of Nutrien

         25,089        25,127        24,407  

 Non-controlling interest

           31        32        35  

 Total Shareholders’ Equity

           25,120        25,159        24,442  

 Total Liabilities and Shareholders’ Equity

           53,255        52,991        51,840  

(See Notes to the Condensed Consolidated Financial Statements)

 

26

Unaudited  

 

Notes to the Condensed Consolidated Financial Statements

As at and for the Three and Six Months Ended June 30, 2025

Note 1 Basis of presentation

Nutrien Ltd. (collectively with its subsidiaries, “Nutrien”, “we”, “us”, “our” or “the Company”) is a leading global provider of crop inputs and services. We operate a world-class network of production, distribution and ag retail facilities that positions us to efficiently serve the needs of farmers.

These unaudited interim condensed consolidated financial statements (“interim financial statements”) are based on International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies and methods of computation used in preparing these interim financial statements are materially consistent with those used in the preparation of our 2024 annual audited consolidated financial statements. These interim financial statements include the accounts of Nutrien and its subsidiaries; however, they do not include all disclosures normally provided in annual audited consolidated financial statements and should be read in conjunction with our 2024 annual audited consolidated financial statements. These interim financial statements are presented in millions of US dollars, unless otherwise indicated, which is the functional currency of Nutrien and the majority of its subsidiaries.

Certain immaterial 2024 figures have been reclassified in the condensed consolidated statements of cash flows.

In management’s opinion, the interim financial statements include all adjustments necessary to fairly present such information in all material respects. Interim results are not necessarily indicative of the results expected for any other interim period or the fiscal year. These interim financial statements were authorized for issue by the Audit Committee of the Board of Directors on August 6, 2025.

Note 2 Segment information

We have four reportable operating segments: Nutrien Ag Solutions (“Retail”), Potash, Nitrogen and Phosphate. Our downstream Retail segment distributes crop nutrients, crop protection products, seed and merchandise, and provides agronomic application services and solutions, including the services offered through Nutrien Financial. Retail also manufactures and distributes proprietary products and provides services directly to farmers through a network of retail locations in North America, South America and Australia. Our upstream Potash, Nitrogen and Phosphate segments are differentiated by the chemical nutrient contained in the products that each segment produces and are supported by midstream activities, which include the global sales, freight, transportation and distribution of our products, which are reported within these segments, respectively. Potash freight, transportation and distribution costs only apply to our North American potash sales volumes. Sales reported under our Corporate and Others segment relates to our non-core business. EBITDA presented in the succeeding tables is calculated as net earnings (loss) before finance costs, income taxes, and depreciation and amortization.

Seasonality in our business results from increased demand for products during planting season. Crop input sales are generally higher in the spring and fall application seasons. Crop input inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete, while customer prepayments received are typically concentrated in December and January and inventory prepayments paid to our suppliers are typically concentrated in the period from November to January. Feed and industrial sales are more evenly distributed throughout the year.

 

    Downstream             Upstream and Midstream                      
 ($ millions)   Retail             Potash      Nitrogen      Phosphate      Corporate
and Others		      Eliminations     Consolidated  

 Assets – as at June 30, 2025

     23,241          14,110        11,651        2,501        2,683        (931 )      53,255  

 Assets – as at December 31, 2024

     22,149                13,792        11,603        2,453        2,571        (728 )      51,840  

 

27

Unaudited  

 

    Three Months Ended June 30, 2025  
    Downstream            Upstream and Midstream                       
 ($ millions)   Retail             Potash      Nitrogen      Phosphate      Corporate
and Others		     Eliminations     Consolidated  

 Sales  – third party

     7,959          992        1,104        382        1       -       10,438  

        – intersegment

     -                93        309        67        -       (469 )      -  

 Sales  – total

     7,959          1,085        1,413        449        1       (469 )      10,438  

 Freight, transportation and distribution

     -                94        153        53        -       (60 )      240  

 Net sales

     7,959          991        1,260        396        1       (409 )      10,198  

 Cost of goods sold

     5,941                440        744        363        -       (465 )      7,023  

 Gross margin

     2,018          551        516        33        1       56       3,175  

 Selling expenses (recovery)

     948          2        8        1        (2 )      (6 )      951  

 General and administrative expenses

     44          2        6        1        95       -       148  

 Provincial mining taxes

     -          97        -        -        -       -       97  

 Share-based compensation expense

     -          -        -        -        49       -       49  

 Foreign exchange loss, net of related derivatives

     -          -        -        -        22       -       22  

 Other expenses

     54                8        1        7        46       10       126  

 Earnings (loss) before finance costs and income taxes

     972          442        501        24        (209 )      52       1,782  

 Depreciation and amortization

     177                188        166        68        15       -       614  

 EBITDA

     1,149          630        667        92        (194 )      52       2,396  

 Restructuring costs

     -          -        -        -        21       -       21  

 Share-based compensation expense

     -          -        -        -        49       -       49  

 ARO/ERL related expenses for non-operating sites

     -          -        -        -        (2 )      -       (2 ) 

 Foreign exchange loss, net of related derivatives

     -                -        -        -        22       -       22  

 Adjusted EBITDA

     1,149                630        667        92        (104 )      52       2,486  

 

28

Unaudited    

 

    Three Months Ended June 30, 2024  
    Downstream            Upstream and Midstream                       
 ($ millions)   Retail             Potash      Nitrogen     Phosphate      Corporate
and Others		     Eliminations     Consolidated  

 Sales  – third party

     8,074          750        948       384        -       -       10,156  

        – intersegment

     -                86        239       67        -       (392 )      -  

 Sales  – total

     8,074          836        1,187       451        -       (392 )      10,156  

 Freight, transportation and distribution

     -                80        159       57        -       (56 )      240  

 Net sales

     8,074          756        1,028       394        -       (336 )      9,916  

 Cost of goods sold

     6,045                359        650       361        -       (411 )      7,004  

 Gross margin

     2,029          397        378       33        -       75       2,912  

 Selling expenses (recovery)

     1,005          3        8       2        (3 )      (7 )      1,008  

 General and administrative expenses

     51          1        5       3        98       -       158  

 Provincial mining taxes

     -          68        -       -        -       -       68  

 Share-based compensation expense

     -          -        -       -        10       -       10  

 Impairment of assets

     335          -        195       -        -       -       530  

 Foreign exchange loss, net of related derivatives

     -          -        -       -        285       -       285  

 Other expenses (income)

     41                4        (78 )      8        26       8       9  

 Earnings (loss) before finance costs and income taxes

     597          321        248       20        (416 )      74       844  

 Depreciation and amortization

     196                151        151       68        20       -       586  

 EBITDA

     793          472        399       88        (396 )      74       1,430  

 Share-based compensation expense

     -          -        -       -        10       -       10  

 Impairment of assets

     335          -        195       -        -       -       530  

 Loss related to financial instruments in Argentina

     -          -        -       -        15       -       15  

 ARO/ERL related income for non-operating sites

     -          -        -       -        (35 )      -       (35 ) 

 Foreign exchange loss, net of related derivatives

     -                -        -       -        285       -       285  

 Adjusted EBITDA

     1,128                472        594       88        (121 )      74       2,235  

 

29

Unaudited  

 

    Six Months Ended June 30, 2025  
    Downstream            Upstream and Midstream                       
 ($ millions)   Retail             Potash      Nitrogen     Phosphate      Corporate
and Others		     Eliminations     Consolidated  

 Sales  – third party

     11,049          1,758        1,996       720        15       -       15,538  

        – intersegment

     -                188        491       134        -       (813 )      -  

 Sales  – total

     11,049          1,946        2,487       854        15       (813 )      15,538  

 Freight, transportation and distribution

     -                211        273       98        -       (116 )      466  

 Net sales

     11,049          1,735        2,214       756        15       (697 )      15,072  

 Cost of goods sold

     8,345                820        1,407       724        4       (723 )      10,577  

 Gross margin

     2,704          915        807       32        11       26       4,495  

 Selling expenses (recovery)

     1,703          5        15       3        (5 )      (13 )      1,708  

 General and administrative expenses

     88          4        12       3        193       -       300  

 Provincial mining taxes

     -          165        -       -        -       -       165  

 Share-based compensation expense

     -          -        -       -        91       -       91  

 Foreign exchange loss, net of related derivatives

     -          -        -       -        29       -       29  

 Other expenses

     79                10        13       13        64       15       194  

 Earnings (loss) before finance costs and income taxes

     834          731        767       13        (361 )      24       2,008  

 Depreciation and amortization

     361                345        308       140        31       -       1,185  

 EBITDA

     1,195          1,076        1,075       153        (330 )      24       3,193  

 Restructuring costs

     -          -        -       -        22       -       22  

 Share-based compensation expense

     -          -        -       -        91       -       91  

 ARO/ERL related expenses for non-operating sites 

     -          -        -       -        3       -       3  

 Foreign exchange loss, net of related derivatives

     -                -        -       -        29       -       29  

 Adjusted EBITDA

     1,195                1,076        1,075       153        (185 )      24       3,338  
    Six Months Ended June 30, 2024  
    Downstream            Upstream and Midstream                       
 ($ millions)   Retail             Potash      Nitrogen     Phosphate      Corporate
and Others		     Eliminations     Consolidated  

 Sales  – third party

     11,382          1,571        1,794       798        -       -       15,545  

        – intersegment

     -                192        421       152        -       (765 )      -  

 Sales  – total

     11,382          1,763        2,215       950        -       (765 )      15,545  

 Freight, transportation and distribution

     -                194        276       119        -       (111 )      478  

 Net sales

     11,382          1,569        1,939       831        -       (654 )      15,067  

 Cost of goods sold

     8,606                717        1,254       733        -       (692 )      10,618  

 Gross margin

     2,776          852        685       98        -       38       4,449  

 Selling expenses (recovery)

     1,795          6        15       4        (5 )      (13 )      1,802  

 General and administrative expenses

     103          5        10       7        187       -       312  

 Provincial mining taxes

     -          136        -       -        -       -       136  

 Share-based compensation expense

     -          -        -       -        16       -       16  

 Impairment of assets

     335          -        195       -        -       -       530  

 Foreign exchange loss, net of related derivatives

     -          -        -       -        328       -       328  

 Other expenses (income)

     63                1        (111 )      16        80       13       62  

 Earnings (loss) before finance costs and income taxes

     480          704        576       71        (606 )      38       1,263  

 Depreciation and amortization

     390                298        287       138        38       -       1,151  

 EBITDA

     870          1,002        863       209        (568 )      38       2,414  

 Share-based compensation expense

     -          -        -       -        16       -       16  

 Impairment of assets

     335          -        195       -        -       -       530  

 Loss related to financial instruments in Argentina

     -          -        -       -        34       -       34  

 ARO/ERL related income for non-operating sites

     -          -        -       -        (32 )      -       (32 ) 

 Foreign exchange loss, net of related derivatives

     -                -        -       -        328       -       328  

 Adjusted EBITDA

     1,205                1,002        1,058       209        (222 )      38       3,290  

 

30

Unaudited  

 

$                       $                       $                       $                      
   

Three Months Ended

June 30

    

Six Months Ended

June 30

  
 ($ millions)   2025     2024     2025     2024  

 Retail sales by product line

        

Crop nutrients

     3,391       3,281       4,585       4,590  

Crop protection products

     2,666       2,733       3,638       3,847  

Seed

     1,278       1,434       1,810       1,919  

Services and other

     286       292       432       448  

Merchandise

     238       245       427       445  

Nutrien Financial

     135       133       205       199  

Nutrien Financial elimination 1

     (35 )      (44 )      (48 )      (66 ) 
      7,959       8,074       11,049       11,382  

 Potash sales by geography

        

Manufactured product

        

North America

     382       353       816       873  

Offshore 2

    701       482       1,127       889  

Other potash and purchased products

     2       1       3       1  
      1,085       836       1,946       1,763  

 Nitrogen sales by product line

        

Manufactured product

        

Ammonia

     359       351       599       595  

Urea and ESN®

     530       426       912       792  

Solutions, nitrates and sulfates

     430       343       751       662  

Other nitrogen and purchased products

     94       67       225       166  
      1,413       1,187       2,487       2,215  

 Phosphate sales by product line

        

Manufactured product

        

Fertilizer

     285       291       534       612  

Industrial and feed

     155       155       306       322  

Other phosphate and purchased products

     9       5       14       16  
      449       451       854       950  

1 Represents elimination of the interest and service fees charged by Nutrien Financial to Retail branches.

2 Relates to Canpotex Limited (“Canpotex”) (see Note 8) and includes provisional pricing adjustments for the three months ended June 30, 2025 of $27 million (2024 – $(1) million) and the six months ended June 30, 2025 of $58 million (2024 – $11 million).

Note 3 Other expenses (income)

 

$                    $                    $                    $                   
     Three Months Ended
June 30		     

Six Months Ended

June 30

  
 ($ millions)    2025      2024      2025      2024  

 Restructuring costs

      21        -        22        -  

 Earnings of equity-accounted investees

      (9 )       (30 )       (14 )       (81 ) 

 Bad debt expense

      38        50        57        63  

 Project feasibility costs

      26        28        41        43  

 Customer prepayment costs

      19        15        37        31  

 Legal expenses

      5        4        7        8  

 Insurance recoveries

      -        (67 )       -        (67 ) 

 (Gain) loss on natural gas derivatives not designated as hedge

      -        (1 )       -        2  

 Loss related to financial instruments in Argentina

      -        15        -        34  

 ARO/ERL related (income) expenses for non-operating sites 1

      (2 )       (35 )       3        (32 ) 

 Other expenses

      28        30        41        61  
       126        9        194        62  

1  ARO/ERL refers to asset retirement obligations and accrued environmental costs.

 

31

Unaudited  

 

Note 4 Income taxes

A separate estimated average annual effective income tax rate was determined and applied individually to the interim period pre-tax earnings for each taxing jurisdiction.

 

     Three Months Ended
June 30		     

Six Months Ended

June 30

  
 ($ millions, except as otherwise noted)      2025        2024        2025        2024  

 Actual effective tax rate on earnings (%)

      23        46        24        42  

 Actual effective tax rate including discrete items (%)

      24        43        25        40  

 Discrete tax adjustments that impacted the tax rate 1

      22        (23 )       27        (20 ) 

1 Discrete tax adjustments arise from specific, significant or unusual events that are recognized in the period in which the event occurs, rather than being allocated across the year through the annual effective tax rate.

Note 5 Financial instruments

Foreign currency derivatives

 

     Three Months Ended
June 30		     

Six Months Ended

June 30

  
 ($ millions)      2025        2024        2025        2024  

 Foreign exchange loss

      31        40        17        30  

 Hyperinflationary loss

      -        20        -        65  

 (Gain) loss on foreign currency derivatives at fair value through profit or loss

      (9 )       225        12        233  

 Foreign exchange loss, net of related derivatives

      22        285        29        328  

Our financial instruments carrying amount are a reasonable approximation of their fair values, except for our long-term debt, including current portion, that has a carrying value of $10,405 million and fair value of $9,929 million as at June 30, 2025. There were no transfers between levels for financial instruments measured at fair value on a recurring basis.

Investments at fair value through other comprehensive income

During the six months ended June 30, 2025, we fully divested our remaining equity ownership interest in Sinofert Holdings Limited, which had been classified as a financial asset measured at fair value through other comprehensive income. Total proceeds from the sale were $193 million and reflected the fair value of the investment at the date of derecognition. A fair value loss of $18 million related to the investment was recognized in the period in other comprehensive income. Upon derecognition, the cumulative unrealized gain previously recognized in other comprehensive income of $27 million was reclassified to retained earnings.

Note 6 Debt

 

 ($ millions, except as otherwise noted)    Rate of interest (%)        Maturity        Amount  

 Senior notes repaid in 2025

      3.000          April 1, 2025          500  

 Senior notes issued in 2025

      4.500          March 12, 2027          400  

 Senior notes issued in 2025

      5.250          March 12, 2032          600  
                             1,000  

The senior notes issued in the six months ended June 30, 2025, are unsecured, rank equally with our existing unsecured debt, and have no sinking fund requirements prior to maturity. Each series of outstanding senior notes is redeemable and has various provisions for redemption prior to maturity, at our option, at specified prices.

 

32

Unaudited  

 

Note 7 Share capital

Share repurchase programs

The following table summarizes our share repurchase activities during the periods indicated below:

 

     Three Months Ended
June 30		     

Six Months Ended

June 30

  
 ($ millions, except as otherwise noted)    2025      2024      2025      2024  

 Number of common shares repurchased for cancellation

      1,878,972        -        4,741,786        -  

 Average price per share (US dollars)

      56.39        -        53.19        -  

 Total cost, inclusive of tax

      108        -        257        -  

Subsequent to June 30, 2025, as of August 5, 2025, an additional 990,171 common shares were repurchased for cancellation at a cost of $59 million and an average price per share of $59.93.

Dividends declared

We declared a dividend per share of $0.545 (2024 – $0.54) during the three months ended June 30, 2025, payable on July 18, 2025 to shareholders of record on June 30, 2025.

Note 8 Related party transactions

We sell potash outside Canada and the US exclusively through Canpotex. Our total revenue is recognized at the amount received from Canpotex representing proceeds from their sale of potash, less net costs of Canpotex. The receivable outstanding from Canpotex arose from sale transactions described above. It is unsecured and bears no interest. Any credit losses held against this receivable are expected to be negligible. Canpotex sells potash to buyers, including Nutrien, in export markets pursuant to term and spot contracts at agreed-upon prices. Purchases from Canpotex for the three months ended June 30, 2025 were $20 million (2024 – $40 million) and the six months ended June 30, 2025 were $77 million (2024 – $71 million).

 

 ($ millions)    As at 
June 30, 2025 		      As at 
December 31, 2024 		  

 Receivables from Canpotex

      425         122   

 Payables to Canpotex

      89         66   

 

33