The Mosaic Company (MOS) 22 Feb 242023 Q4 Earnings call transcript

Good morning and welcome to the Mosaic Company's Fourth Quarter and Full Year 2023 Earnings Conference Call.

[Operator Instructions]

As a reminder, today's call is being recorded.

Your host for today's call is Jason Tremblay. Jason, you may begin.

to quarter welcome XXXX full and call. earnings you, our and fourth year Thank be Bruce then provided Chief will comments Opening by followed a Executive Bodine, by fireside Q&A. chat, open Officer, and President Executive questions. Vice Executive be Financial Jenny will and Clint Vice answer Freeland, Commercial, your President President, to Officer; Chief and Wang, available also

beliefs financial include, not and from limited management's forward-looking to, We in will and filed during expectations statements with could materially that based uncertainties. press are are may forward-looking and results. Exchange Actual to this conference are about those today's but are our future and reports of Commission. be making from results call. our differ operating yesterday They The statements projected results. differ risks date published statements Securities results actual materially to the subject as statements included on and Factors the in significant in cause release

be also presenting will We financial certain measures. non-GAAP

contain these performance and release information non-GAAP important data press measures. Our also on

I'd Bruce. call over like to the to Now turn

potash the largest much our balance Vale world's Fertilizantes optimized his thanks expanded completed and We leadership. Thank you for call his This with the of we to earnings in cost stronger contributions structures, the for Brazil first and Joc company. morning. Mosaic's the successful and held this acknowledging nearly today, call Joc its acquisition. is Under for a our to decade, CEO, by my like transformed sheet. as is I'd Joc, many footprint deleveraged Mosaic development today. O'Rourke role our company We to mine. joining begin Good and

that all building forward drive helping and you We and current of understand have Mosaic's how I look by improve create. position helped do of will value that. opportunities on to Joc strategy to the just we to evolving shareholder returns strength

are away today, this messages a that take to few from would call. like for you key there So we

are very First, strong. phosphate markets

the for are foreseeable our we constructive to optimize remain so to dynamics production working we future, expect We and fully. benefit can

recovery in demand Second, potash. we expect

are In we in seeing be our said, mine. emerging fact, signs economics, from curtailing potash Colonsay given production early demand will of That we Brazil. current

and Third, as improve we to reducing returns. through-cycle costs are these expenditures well capital as actions taking

our place, to capital and repurchases allocation in we returns strong excess share financial risk-adjusted with through investing compelling Finally, when foundation committed and prudent remain selectively are cash returning dividends.

year in returned billion invested per revenue full earnings We over of EBITDA $X.X billion, and $X.X $X.XX. share business, in generated XXXX, Mosaic to long-term $XX.X in debt adjusted shareholders, million billion $X.X of and billion repurchases. of million $XXX including the For refinanced adjusted share $XXX

The to and Let's markets. with market. secular XXXX markets. demand start global extreme key volatility disruption customers by driven reduced returned demand. demand retreated, outpacing remains oilseed at in the growth by many In prices supply and XXXX, fertilizer brought supply prices as supply. looking High grain picture eventually long-term encouraging

driven ramp and to addition In next continue several over growth, being we population years. which the will for expect agricultural renewable is by fuel commodities to demand adoption, income

Union European and tens Singapore, of additional millions This Short-term look fundamentals are of of in future. production. the mandates policy expected in also has the announced require the source acres to additional have California, demand been potential and Recent of in mandates positive. emerging

suggests ratios stock-to-use price what will anticipating. in in This result that believe Brazil, low already will the We remain pressure under support a growing including is weather production environment. that challenges market ongoing regions, healthy than grain and key grain lower

lot on tends be there to for the stock-to-use a point, On of and soybeans. this corn ratios focus

growers represent consumption. to crops, their XX% continue global around ratios. which maximize fertilizer of experiencing to incentivized is approximately are yield and is that be in presentation potash tied strong As these production that tightening you the applications. other posted, can phosphate the crop believe world see and consumption XX% through in we materials result means continued commodities This many the of We of two to the

In demand the into North quarter. fall season America, well application fourth drove long strong a

bins activity and near low. are us channel winter Solid empty are inventories fill tells

We are spring March. are strength and seeing the through demand planting continue season committed mostly into volumes sales

full phosphate growers replenish ratios corn at and positive, fertilizer In markets. nutrients. both is fertilizer demand Brazil, fertilizer Favorable barter soil shipments expectations record for ag promising our for are favorable. And weather outlook very or delayed an and purchases, all-time impacts with need soybeans while are to of have as XXXX commodity drivers especially for near year

to due food security. tight for also an will And export so asset China iron tripled to has it government of remain environmental also at to oversight time. fertilizer restrictions China's global continue growth continue reduction impact phosphate as continues and will expect intensifying. the molecules industrial the than more We pace. has X do markets. production. with more the Tighter competition direct quite The last in Lithium part to phosphate for production domestic expect we to is domestic in years, some supply rapid DAP prioritizes had a

suggests with remain will together additions constructive. market capacity in This, limited phosphate the near future, fundamentals

intend supply meet adequate Colonsay. not to to curtail and is have demand potash, yet improved, is in term which For why production near the economics we at

service and Colonsay return to market demand. will in continue order. And developments customer needed, to be will prepared We short to when monitor

strategy, remain solid. customer fertilizer operations and to meeting dynamics and value executing shareholders. business At our delivering needs, ag Mosaic, Overall, to we optimizing continue on our on market focus

results fourth quarter now and Turning our outlook. quarter first to

and per quarter the delivered $X.XX. $XXX of earnings adjusted XXXX, billion, For $X.X of fourth revenue Mosaic share million of of EBITDA adjusted

potash of on volumes roughly of Our sales EBITDA tonnes. million million adjusted generated X.X business $XXX

at within the Portland, Canpotex initial finish at year, sales a and Oregon us up volumes the team had port strong back guidance. deliver to the the our running, of With to enabling range well

of $XXX margins stripping levels. tonnes. $XXX Realized sales for the In from quarter remained $XXX volumes EBITDA the first X.X million million the mine absorption X.X expect we to by lower strong offset of but potash in of tonne. the generated were of phosphates, lower million in range range quarter to and volumes We million sales at on XXXX X for the per tonnes prices adjusted production in cost

For of X.X in quarter, the million of volume tonnes to DAP-realized the million mine $XXX range and in the sales to X.X phosphate expect the $XXX we at first prices tonne. range per

in range from to the business. million. delivered quarter part the to Moving $XX seasonality as $XXX first the headwind tonne. quarter fourth with the the we above the $XX normal South year, of historical adjusted business we demand normal annual our operating margins recede business EBITDA margins fourth America. per of weather-driven to Despite quarter, results fertilizer in in of the expect In this came of well Distribution strong

to generates typically The each consistent margins and Brazil's which lower quarter of first MicroEssentials, year higher products, corn of a crop, a of fertilizer demands which of which historically and nitrogen volume volumes higher going higher percentage amount generate less has lower margins.

lower margins result, but tonne. in $XX with margins are improved line quarter to a norm As $XX during our resulting of per in generally the annual historic from there,

increased returned our remains We share executed billion and repurchases. $X.X and and capital CapEx XXXX $XXX an million debt shareholders well and We progress sheet against in significant refinanced our made in allocation projects. dividend billion to optimized. We through investment on in our $X.X spent strategy balance

as not of only flow returns the Streamsong sale cash proceeds sales but Our included such free Resort. asset also from

strategic for to initiatives discuss XXXX. our want top I Finally,

live down time, go in program, expect of $XXX savings acceleration baseline, least achieve global savings we're annual later digital First, year. part by driven rate on we a will Over run which focused to driving off at costs. XXXX our in million from this

Next, to we'll transform increase operations continue to and flexibility. our resilience

is to phosphate our top improve in volumes. Our priority production

toward our we end, X over year of turnaround have We Florida operations. have in caused us enhancing To the and this this that maintenance annual million we first working a are few rate busy most of run by an at half issues. of areas quarters the efficiency reliability overall target the significant schedule as the our tonnes facilities next

region Next, country. regions tonne completing we'll further the the facility by most further product world X our also our products. the growing in fast-growing northern Brazil, the to a of one expand by Palmeirante agricultural in We'll dynamic at portfolio non-commodity million serve distribution presence strengthen of

at later those capacity expect MicroEssentials our plant Riverview we in tonnes and expanding spring. Florida, are additional this We here

more our clearly of sales is phosphate differentiator be will products, us. We which for value-added anticipate half a than that

In testing. MicroEssentials the field improvements are next-generation will for Pro planning significant delivering addition, MicroEssentials extend patent in we yield Pro, protection our which also is XXXX. until

we'll capital total $XXX Finally, to we'll disciplined true return shareholders. by million, our to expect excess about continue we allocation remain cash strategy. to and capital In XXXX, spending reduce to

financial our you remains To I'm through agriculture the strategic progress product for and grow optimize looking summarize, and and a At very proceeds. have foundation map our to year strong to as from cycle to updating business we positive. to on our we fertilizer decommoditize forward returns to a which outlook markets road offerings, operate. have Mosaic, the

Q&A. move let's to Now

move Q&A, Before live on we we that to our published earnings we to of done common have past the received last some in materials the as most we address would after quarters, like the questions night. we

of diverging. question, Can questions X while you asked its you Market developing and tell have being is to For With seem crop potash our progresses? strong, these how the see first number as phosphates Bruce, analysts markets phosphates. potash dynamics be year a way. these about nutrients of us finding

inventories are the remainder very to way for tight a in the to We positive is the supply and globally, to Phosphate stripping remain margins year. I demand, characterize think decade. will due leading conditions. a some last strong the margins good stripping low strongest this of of believe market elevated markets situation current

channel regions, spring America, key the inventories strong planting. at we in Looking demand are and seeing North for low, are

levels quarter operate we For at fully to first Mosaic continue sales and our are committed. almost inventory minimum specifically,

range, the last nutrients. showed X-year should end prevailing announced increase outlook growers for grower positive earlier inventories the move higher. fourth this negative. proposed are below an low are strong in rates replenish need Brazil, India's for at but the quarter month remain demand well margins importer remains of low X-year the In to year, as fertilizers soil subsidies range, phosphate very our which inventories, year the of subsidy and and With from the rates

we seeing exports also China, industrial increased The rising focus In government demand. an is adequate limiting security. food are meeting ensure supply domestic on while to

with limit been the more product dynamics tripled to foreseeable continue for strong, of lithium finished production last million X.X these market than particularly phosphate in China's XXXX. iron to in has X very Industrial equivalent exports expect the demand, tonnes to We years fertilizer future.

the seen to will and We continue in to constraints of expect the as to Belarus the from for future potash, sort. markets phosphate growth in leads us remain constructive continues the supply abate rest years Overall, Russia, the in few this will production that demand In additional past year. conclude XXXX.

On the see North America. we in stability side, demand

phosphates, to are committed for similar In fully almost fact, we program winter our And fill was sold. QX. fully

In if on years those are high-priced Southeast Asia, down Indonesia, further were Malaysia XXXX. crop inventories worked markets and nutrients application not will yields replenished. in in particularly under strain Two of put

demand pent-up significant seeing in that are region. We

In China, historical pricing. periods favorable increasing It's are reported than while meet to potash strategic periods, this a its objective. as will to inventories ratio inventories fertilizer the is of stock-to-use intends reserves have on-farm normal increase that China demand to due result remain to been than that historical meaning higher higher

also as news volumes drive of The domestic meet due its need to factors concerns. high continued a these recent We lower the in expect production basin demand. Chinese should capping production combination import to of key for a environmental the potash result

early near in seeing term The up potash of has slightly. but demand signs we emerging weather in the are Brazil moving in demand prices slowed

at In as potash factors expect global together, we or shipments in we you fact, entire levels the pace fertilizer expect improve at XXXX Putting XXXX. to shipments the of look peak progresses. be these to market, when near

Thanks, Bruce.

you you As what question, market actions the take? a given follow-up planning are to backdrop just described,

and increases the focuses run margins our markets, tonnes, our on significant result, unit our volumes. retailers million yield and MicroEssentials for X rate volumes improvements. our Getting of increasing given only MicroEssentials of phosphate but production a strength also to by superior And phosphate increasing Well, improving production annual Mosaic an further as revenue, our margins costs. generates Mosaic. not generate significantly reduces farmers,

capacity, retail do and margin premium these phosphate the a Mosaic focusing in command For earn for on we but potash, Brazil our to demonstrates Esterhazy premium low-cost of while margin we our network our cost Plaine is only management. our at to capture Colonsay flexibility In conditions used curtailment at market segment flexibly sites as also a products. commitment is site Belle not premium dictate. only managing ensure Mosaic, in when we at and our production Colonsay operate The

conditions year. This structure mix to order product market optimize product in to of changes the end of effectively couple adjust our enhance in our our increase a end to that to will the will have our flexibility We projects the and margins. more before respond mix ability cost

on investments cost in operations, SG&A will These addition capital. In driving in ensure and reductions initiatives to demand and are customer CapEx focused our reductions our we working is optimizing our met.

advance through-cycle will shareholder to continue and performance Our value financial maximized. is

Mosaic Our to for region companies. next question problem-like Fertilizantes. related for your many input outlook a is What Brazil is remains ag XXXX?

This of companies first are destocking At early complete the of half high-priced A lot market of of their or excess to the still without given destocking write-offs. these the is in observation. significant challenging high-cost action assets a any off fair inventories took conditions. the in writing Mosaic, we XXXX process inventory

it second in and the distribution our shows above entered result, that we to $XX in a the year range range position to returned in margin the the per tonne half third $XX a in in came the and business quarter. quarter The margins. fourth our in of As great

in XXXX, nutrients. tonne record continue demand In the per From perspective, the incentivized range constructive lower need to for margin lower fertilizer basis, than in be normal the full we record expect expect soil the by shipments near normalized we despite replenish within a X on year. or to but the seasonality range ratios as first conditions and growers to fertilizer distribution quarter, weather a barter due quarter annual

a Changing CapEx. topics. question There's about

that do approximately evolving You're this term? by spending million you decline that see year. indicating will longer $XXX How CapEx

CapEx unusual of an number out due projects the from of of to period across high-returning opportunity elevated coming a business. We're

of our spending these We and are end declining. is to a projects, the coming as result,

In a addition a at million to with reduction we in longer-term rate to the $XXX below XXXX anticipate XXXX, $X reduction be further run or in billion.

with session. open will And Operator, move Bruce. questions. now please the we open line to for follow-up Thanks, that, the question-and-answer

Instructions] [Operator

America. Bank Today's first with of question comes from Steve Byrne

yet that nutrients. Bruce, view forecast a There's close nutrient about conservative massive deficit couple X crop I based this in million the shipments When and like support 'XX your to XX tonnes that a a maybe what at is of really and of you phosphate in the both looks times potentially therefore, that world, both thesis. soil it's mentioned look that it X, years to a it nutrients of land like last consumption Slide view? were your for needing -- forecast and global potash, where normal the of Or is Is on of kind to just each replenish was levels for was -- in doesn't is those not on on above needed XXXX. replenished? that be this

been application We talking of couple been view soil. the to of good Steve, fertilizer sure, Thanks. share there's last and your the that under for have from years you. nutrients depleted for

turn think in little answer, Jenny both a a the maybe little bullish at. I'll talk bit I a pretty market on to bit things And shipments over it where from in that's we're think those to standpoint about why demand return maybe standpoint P&K you're specifics each on or individual getting near I better record what or at markets. supply to

we believe think that there where sufficient farmers mine I without the don't was replenish allow P&K Steve, in soil, the to would fertilizers. definitely

impact yield seen show call shared the have X you last may applications, especially that would years. And under slide due the over last we potash. We one on the recall, as evidence to

demand to it is situation. projecting we're higher partially, a So why supply for the related XXXX,

-- the usually broad actually field. year, down, we the about realized recovery we pursue the America. the recovery a year. P&K or has these demand as going built our replenish the particular, aspiration. just fertilizers application, their to year in put in Asia, farmers beyond in that smaller demand we After the nutrients smaller the don't Latin need years been yield see to X market talk see growers in this they into that order will market very are where under strong is growth We global into forecast And this need market on to tailwind some believe that potash, And in to forecast this and as we in shipment that continue demand the to have

next question Fargo. with Garchitorena our Wells And Richard today from comes

now XXXX? ask, expecting are in Mosaic up levels terms you to of this to demand terms to see start of for Colonsay, and that to have and Esterhazy running year wanted what you year What operational maybe capacity with to some make Just decision And the cost you decided cash would price last curtail in or Colonsay? differences then in the Colonsay of down? color versus need

demand. potash decision not is the the in production on meet to Colonsay's we here, adequate based term supply sure, one For factor. made curtail And to short

continue not continue really demands, how to as think do we're the evaluate to only but consider at shareholder that. our well. do we'll the So your we value to I network, we customer looking flexibility as getting and And point. also market within And that's

And broader at the look year, particularly sense. very potash. But recovery, the XXXX economics just demand current we're at make the for you about if didn't the time, whole on optimistic

flexibly areas Jenny down. demand as restore as at We've let meantime, can quickly a our return things quickly But to Colonsay. returns and I'll short down. moving that talk and going order, when And to done before. in shut we well. some demonstrated We can very up market very resolve will, we minute. And in Colonsay production that We've about this mine we're the do in expect,

Those if determine complexities are network low-cost some well. rate there have things and continue is really on the Belle going let turnaround those the of there market rest full value shareholder to the is to facilities as run the that. and if what's and at earlier, with and X designed, maximum all our and we've of Again, analysis facilities. things this But extract and of we Esterhazy, our value of out is Plaine demand well, said production like schedules to into X as as come

So little the why about Jenny, bit expect be maybe the you want a for rest pretty of pricing to dynamics talk year. and we of the to market good

Sure, Bruce.

very I think market recovery saw to over recovery. billion the in demand and tonnes, build year, of X year, markets, In added seeing India major the probably X previous XX% I demand the increases earlier the the XXXX, demand just on comment Brazil, We strong seen XX% And on increases China. the year America. we over last we recovery are was North in the want of from the in in biggest the these have was apart over of and on last potash. growth and demand consumption XX% interests potash all

we Brazil, broader potash And market I continue in recovery going in in expect demand. When of to other Russia are late out earlier, some need of And of have into XXXX, equation, demand smaller in Latin get at demand small as and shipment Belarus market this So Laos. to we've XXXX, we demand in from the of a will we Asia, growth projection and recovery see market, the look from the America. to much as the supply also supply to the a incremental mentioned seen the all we side meet tonnes India. the some

itself, or we price close market. time, are at low the As the and we get into dynamics. season bottom are to And in the the the are believe market typical we we season watching we XXXX, in

weeks fact, have Brazil. recovery in over some last major X In seen the we price

run the maximize well. creation we our earlier, potash the operation meet to value shareholders in to as demand. mentioned And for we customers' business, want Bruce our our meantime, as So

economic the that's decision. So

Capital with And our Joel comes today from Jackson next question BMO Markets.

been that phosphate said You elevated. should have margins

that a or how Can about QX would margin better, expect that would you more? be be in phosphate basis margins? than basis? gross the lower margins talk you QX phosphate on comment that strong Do or EBITDA bit same is. And You on an other

theoretically we've the is things higher, it kind supply China words. even of going with about the as tight. bottom talked to you And chat that listen, to questions. line out reach could for balance. is thanks go and about your talked demand, And fireside Joel, On phosphates, tough extremely the in that much be restrictions if as one we of is the supply

So margins business. this that is driving pretty in good stripping

remainder we decade. over seasonality seen and to Some stripping sulfur little raw the throughout realized of bit best of the will margins, pricing on do and stay year. projected We we flat last a the the our just what expect do given for year continue. continue see relatively strong to and pricing material we year And may have believe due bubble we've the to the ammonia that but for

Vincent with Morgan our Stanley. today from question next And Andrews comes

last the I in year? you of Can this duties, are ask side, to expecting what they lower those over rates imports It you anticipating on expecting would market what Morocco issues like some U.S. production but that uncertainty phosphate I And out just into be given, there's at ran about year-over-year, coming continue on you're seemed an year? Are of into this terms countervailing still guess, the year. update helpful.

pretty Yes, of thanks you we something team watch is at world, team and going and that. team in imagine. as analysis looking on today. closely talking part It's that market Jenny economic are our to good and and the really you her what's can Vincent,

the provide little to more commentary. detail to going I'm a it on her over So turn to

especially the shipment. I of we've half second OCP's on very year, their of Yes, phosphate fertilizer closely major been recovery think export Last seen the watching year. some we've in

very are towards exported actually major record some years. basically than the flat. half they we the export is year in seeing in This the their less on level last that their asset record phosphate XXXX. tonnes In were exports their And last back And rock few year. meantime, was to bring basically reduction export therefore, of the over

into in they little about might but of a they're into granulation is their really going keep think to way capacity, normal forecast add our and to OCP that the to continue new not XXXX, big So supply the bit operation deal.

stay we supply and will supply a believe tight. the amount of XXXX -- even recovered as fertilizer with this production, OCP increased So phosphate small

Mizuho. Edlain comes And our with from today Rodriguez question next

case. about nutrients, back given stay I the if any the strength this of like is and prices? like their cut the above to that phosphate prices the mean, which you've concerns clearly other in farmers about phosphate so incentivize talked in they But thinking decline way if start crop forth Bruce, prices expenses could

something, nutrients, right? And that's economic we're attention lot potash -- NP&K. prices The I'm a right With And and before, is we being of a even do still though farm at more one outlined now, one the paying phosphate prices the of has to. elevated, and when sorry, again, because the on of at fireside of overall, seen the have topic affordable as and down questions, we tight you well. supply level corn are soy moderate that a portfolio are Jenny and nitrogen about great talked significantly corn see look -- pretty but come economics and we soybeans

think affordability is fertilizer compared on-farm a So last to percentage combined, from years. X I revenue of actually reasonable the pretty

depending total corn the destruction not package that global of and for the soybean of pricing we're is demand to farmers really only we it is one due crops. prices, but lot their XX% of fertilizer and about anticipating materials some soybean we've our any demand nutrient a on corn demand. and made the other about talked in So And

in oilseeds quite lot oilseeds XX% seeing rest, we're economics in nutrient favorable and markets. affordability. those non-grain actually tightness markets of is and and when grain of it comes The a other And to some and

is couple being the affordability, in of demand good is biofuel of some last by and there. nutrients Again, stuff well. The on provided of years, of incentive tailwinds the competitiveness fertilization the the think that there. I as driven are overall, lack So

got then yields wants good the maximize farm. constructive very that to it's make. to more ag drive to to up she point continue think hopefully, prices I on continue commodity has demand Jenny and moderate one

Yes. provide I data I point. just Bruce, just want to want to -- one more

for the And and supportive. a we rice, at soybean the new on As today, price other setting ag were record. India prices look are soybean. is corn price is corn, major fact, And if very commodities in export you cases actually, very, today, all rice watching like

in the tells So the economics. prices very also go you beyond commodities farm other that corn, you, of constructive the if actually, are and soybeans, terms

Andrew question RBC Markets. next Wong comes Capital our And with today from

So cost expectation could when to on you on And annual run rate? expectation and rock an your return happens, the what's that phosphate conversion on what's X your cost? when phosphate million-tonne production,

Andrew, this the and strong market demand, for are few limited focus supply. in for margins the talking about high strategically, thanks. today, big a We've given area been that particularly given us the a quarters, it's

We have stated continue in next we're to quarters to that an path over confident run and to state our that. annual get We're few million-tonne on X rate. the

service. Last those done two year, with in at and to back sulfur to some turnaround went and year last service. impacts had of both another the of major now end are of large returned the had We half we plants year, second Both at our of Louisiana have sulfur those down. of a plant down Bartow. Again,

we see a gradually that. starting to return are to So

chat the But the turnaround schedule do mentioned of into heavy comments, have as first some in half a fireside this of we year. baked

part -- couple last level of the maintenance those with of on that the more towards end us that to million caused year, getting to to some X have unplanned maintenance over some turnaround schedule this of tonne So that years. the focus is actors continue issues of

the asset So there again, we're well. our confident And do do that's health. we're to X by year. our of going lot CapEx, actually last continue infusing years And to over been on to as focus what we've get that going end a is to way, sustaining the It's by the the needed. of

of Clint that the to forward end add, the year. to has piece. So And look near something the I economics think, on

cost-per-tonne $XX a I the per of likely on was when something level, of look of, see up think that Andrew, it, call tonne in of we our Yes. think order magnitude would to cost. that at target to production impact that moving question, you improvement and thanks, No, the your basis, Bruce. I $XX on part back a unit

So it's those levels. material target as we begin to ramp up to

in just but Thanks, to million through $XXX on to top we've reduction cost reductions talked initiatives Andrew, layer of that, our addition that, we in even enterprise. about the cost Clint. And of expect

at Looking getting capital of working just spending, benefits reduction. operations overall production, full some and to management back of then the G&A CapEx

that some to wring much of enterprise, So talked should out benefits other really the adding to initiatives more these about, through-cycle be absorption favorable. Clint plus economics from cost the

Jeff question And from today our with next Zekauskas JPMorgan. comes

that to I in you issues income get can expansion? cash cash has the turn around equity that further up that through clarify does your the capacity been catch that's made? venture Is the to wish lower. over was you don't come relationship equity the joint a in from that that you if from the case time future benefit income with that some you up? much wondering Or it It's there Ma'aden. that you Is also out historically, a you've catches invest

Jeff, thanks. no,

As well. sure, that an venture market market for of access joint part that you there. our assets important that is India intelligence of us for of get through the joint gain portfolio not as markets do like in some of tonnes point have lot a the venture out, only with we We we

depending could an return such priority think never investment. far in top to do As the in on that's want investment, don't list. interest on say economics I have be future the in never, we as what I of our

joint and liquidity a year we've But MWSPC the of sure, But to relationship. that a has areas on that on that and we've a well. the off got course a just where is for it right standpoint venture seen mature the Arabia better we're They results our partnership, the cash our the in happy really at for Ma'aden great record came of got may earn spot else. put something day, continue as end I fairly And to think any Saudi we over focus to but now, been long-term a basis, at production this running. of with and at portfolio

So we're that turn on that really more going to Clint little talk hadn't to we questions that in value out the had. I'm starting extract of it a to about the you previously. over bit But to way economic

I cash. between equity earnings time think the differential and you noted the over

actually dividend cash first our paid think last I year. was out

was think million. roughly I year equity income us total $XX last for

say, form years, Ma'aden a been focus the one of part over the dividend. been X get of of the did reduction. But to things debt past, we in So the that on has that of X has

has of project. the And I So and a of debt up gone overall, paid earnings about firming $X.X by has the the magnitude, of billion, venture actually down the cash debt been lot think of joint structure capital to of down paying order the some load. generation so the

you've level been income of cash that tonnes down and I earn it's so also One modest, the why cash between to equity has equity one lot differential again, that's to fees actually we marketing think some out we do thing and debt. But sell. that between paid on see of the main earnings and and going sheet actually get the relatively that partners. differential some managing because a again, why the of the and of the you seen but also reasons And balance of one note, that's do us cash and being paying to earnings reasons

Our next question BNP Patel Paribas. from comes with Rikin

I working guidance given the I context requirement wondering the expect earlier, capital outlook to quite could if working capital the investment see for some suppose, but had the would XXXX. release significant year? just of you covered provide You CapEx you you on year, next well last was

been in been, all It little has question us Working broke major capital right, if for I of across for focus understood beginning markets. a your our up has a the me. bit

over to I going maybe about talk it working of to job more I'm think others think pretty we turn a how risk to we've done about bit space. a capital. little managing But the in good that Clint compared to

Bruce, for question, Rikin. Thanks, thanks the and Yes.

last a of has by environment. you And been pretty capital. the price driven changes lot noted, the couple significant that seen working over in years, we've of As

saw and significant as you cash increase So capital in of seen a material pretty in a And environment of 'XX XXXX. changed. working then use a cash pricing release in you've

and that of to the A it's so things lot the those inventory changes. levels I some around also as significant to a of going by our that as driven of is Brazil business times, price in forth But think be look out, they one we is contributor price manage distribution environment.

working are to even to, And harder those that's to payables capital focus trying receivables we like and turns. needed. putting and think some days things of again, work level manage renewed really the manage on inventory of I

to some seasonal would that years, to particularly tried set of the of The alternatives other couple us those thing working of through some I elements up funding note last assist is, seasonal, in we've over managing needs. capital

So to we've facilities BAAX. upgrade our flat, BBB things of when rating an had like put in debt a number inventory got and we lines rating securitization receivable -- place

seasonal on and paper what commercial also of cash some to certain to, facility. And company away try again, do up of set to reduce some drag level we maintain the those of year. a moves throughout We to the take a is the funding

and purpose. One will And that level that So cash also on but through just -- being the to focusing dictated price capital. trying year be fund be then of not just absolute X using is we be on areas. environment, how pretty again, those by the for again, working that thoughtful

from our Josh And Spector question comes next with UBS.

follow So specifically. on margins phosphate I wanted to up

higher, out I quarter. in there, but gross fourth were think lower models pricing came margins versus the in most

I'm So think first stays sequential -- square about talked margin we because the We fourth volume stripping more to sorry, saying quarter $XX. first but in per about gross up gross the here or trying tonne you're quarter you're margin margin pricing, if move, the leverage in high, the guiding in quarter. just

you perspective versus quarter? to So tonne fourth you're did what margin quarter square in moving per these from a parts is the the in gross there what a way expecting all first between

thanks. Josh, Yes,

are bit we little of there. a seeing think expansion I

given talked come sure, For to I the down about the schedule earlier. fast, as part costs is other going turnaround aren't necessarily our

those going margins. a to see So still a realized healthy bit But that's be overall, of drag. little still stripping we

-- maybe from of our a portion course, of that us going You talk of CF. ammonia over stripping to and good realized think differentiates Clint on margin, access got our to to in industry but turn minute, contract given sulfur in-house. position get advantage it, Faustina the from about margin, and a really low-cost our we bit a bit to it stripping on advantaged kind what little our about facility more a I'm our with ammonia little a And comes consumption

going of do still bit talk a cost to margins Gross given a realized think good. be we are full little still will And the to going maybe that. So in be margins you of slowness recovery good see about little bit that. stripping a pressures, but we're can more maybe Clint,

is add turnaround ago The guess, I higher some a our reliability. converter our had months it's the ammonia made thing Yes. -- in-house XX Louisiana had, -- much in -- made facility. investments a that about around at around only I on would as it's we we that in And result,

as seen little the again, lean more level to we've had, we've And production contract. been we've a well sourcing CF proportion as on ammonia our of that of bit able that as as a the

some So on the XX% as in-house. we've the dependent ammonia result, helpful fourth cost a of And less an market as was example, comparative And from our that's been so again, in of a quarter, about sourced purchases. standpoint. actually

this a historically at our back maybe finished up, in-house again, production we're more as ramps up, to from in production time, back market. more point we'll product So the But ramps forward, ammonia. environment little as overall we getting than this production need in benefit have naturally we access go on bit of

I'd This Bruce conference concludes for the turn closing remarks. session. like over question-and-answer to to Bodine back any today's

for reiterate call, Well, to thank you, like our key today. I'd messages operator. To conclude our

this as we've And we've second, in discussed, of that, the we we expect talked strong potash about to First, continue expect throughout favorable is the a and dynamics and is emerging and demand the demand year. rebound global global market, very year. remainder phosphate strong,

Mosaic's capital optimize we is executing not strategy while to changing. are we can that markets from fully our improving resilience. our allocation third, so And strong operations plans benefit And finally,

to returns of return invest in and will cash shareholders. excess We compelling pursuit

joining So great thanks, that our safe I hope and call and day. you a everyone, for today, have

Thank concludes you sir. We presentation. thank for all you, today's conference This today's call. attending

disconnect now your lines, a and may You day. have wonderful