 Nutrien reports $11,654mn in revenue, down 20% YoY, and adjusted EBITDA of $2,478mn, down 50% YoY in 2Q23, driven by lower product prices. The company’s Retail sales were down 3% YoY to $9,128mn in 2Q23. Despite a strong sales volume, which increased by 15% YoY on higher planted acreage to 5.7mt in 2Q23, crop nutrients selling price was down 24% YoY to $695/t with a greater decline on international markets (-33% YoY) compared to North America (-22%). The crop protection price was lower as well. The international retail segment provided a relatively low margin for the company compared to North America. Retail segment adjusted EBITDA was $1,067mn in 2Q23, compared to $1,427mn in 2Q22 and $1,097mn in 2Q21. The potash net sales reached $1,009mn, down 62% YoY in 2Q23, mostly due to a decline in offshore sales volumes by 22% YoY due to reduced shipments to customers in Asia. The average potash price was down 59% YoY to $298/t in 2Q compared to $380/t in 1Q23 and $719/t in 2Q22. The potash segment EBITDA reached $654mn in 2Q23 compared to $2,027mn in 2Q22 and $495mn in 2Q21. The nitrogen net sales were down 45% YoY to $1,216mn with a greater impact of ammonia sales cuts (-55% YoY). The company increased nitrogen sales volumes by 13% YoY to 2.9mt. The average nitrogen price was down 48% YoY to $379/t in 2Q23 compared to $500/t in 1Q23 and $724/t in 2Q22. The nitrogen segment EBITDA was $569mn vs $1,240mn a year ago and $555mn two years ago. The gas cost went down 68% YoY for Nutrien to 2.74$/MMBtu. The phosphate segment net sales reached $502mn, down 15% YoY, affected by 5% volume growth and 21% price decline to $732/t in 2Q23. Adjusted EBITDA in phosphate segment reached $113mn compared to $184mn in 2Q22 and $112mn in 2Q21. Nutrien cut the cost of goods sold by 1% YoY and selling expenses by 4% YoY in 2Q23. The company reported impairments of $698mn that negatively affected the bottom line. Net earnings from continuing operations were $448mn, down 88% YoY in 2Q23. The net debt of the company reached $11.7bn as of the end of June 2023, compared to $12.1bn three months ago. The company repurchased c.13.4mn shares YTD as of 30 June 2023. The total cash used for dividends and share repurchases was $1.6bn in 1H23.  Nutrien revised down its FY2023 guidance from $6.5-8.0bn to $5.5-6.7bn for adjusted EBITDA and from $5.5-7.5/share to $3.85-5.60/share for adjusted net earnings per share. The company expects retail adj EBITDA at $1.45-1.60bn (down from $1.60-1.75bn), potash adj EBITDA at $2.0-2.5bn (down from $2.65-3.35bn), nitrogen adj EBITDA at $1.8-2.3bn (down from $1.95-2.55bn), and phosphate adj EBITDA at $500-600mn (down from $550-700mn). Nutrien plans to sell 12.6-13.2mt of potash (down from 13.5-14.3mt) and 10.8-11.2mt of nitrogen fertilisers. The company said 3Q demand is strong.  We keep our 2023 forecasts unchanged. The recovery of the demand in 3Q23 is ongoing with three nutrient prices to stabilise in 2H23. We will keep our forecasts for Nutrien unchanged as the product prices by segment will likely show a U-turn in 2H23. Nutrien’s volume guidance is in line with our forecasts for FY23. We believe the stock may stay flat at current levels; however, the final margin for FY23 is still uncertain. We maintain our 12-month price target of US$69.2. We rate the stock Hold. The stock is valued at a 6.6x EV/EBITDA’24 based on consensus.