Nutrien Ltd has increased its first-half 2021 earnings guidance given the strength in global fertiliser markets and strong operational results.

First-half 2021 adjusted net earnings per share is expected to be C$2.30-2.50 ($1.86-2.02), up significantly from previous guidance of $2.00 to $2.20, it said.

In response to continued tightening in global potash market conditions, Nutrien says it is flexing its “low-cost network” of six mines to draw upon its available capacity in a timely manner, planning to produce a further 0.5 Mt of potash, in addition to the 0.5 Mt increase announced on June 7, 2021.

“As a result, we now expect to produce 1 Mt of incremental potash in 2021 compared to expectations earlier this year,” the company said.

The majority of the increased production is expected to occur in the December quarter, with some of these additional tonnes expected to be sold in early 2022.

The company’s updated guidance for potash sales volumes in 2021 is 13.3-13.8 Mt, which would exceed the company’s previous record high for annual sales volumes of 13 Mt set in 2018.

Mayo Schmidt, Nutrien’s President and CEO, said: “The quality and breadth of our integrated network, combined with unparalleled expertise in potash mining and an exceptional transportation and logistics system, helps ensure our customers have the crop inputs they need to feed a growing world and drives tremendous shareholder value. With continued strength in global agriculture and crop input markets, we are raising guidance and expanding our potash production by a total of 1 Mt to ensure farmer’s get the potash they need.”