- Due to supply chain disruptions amid the Ukraine-Russia war, prices of fertilisers have been soaring high this year.
- ASX fertiliser stocks - NUF and IPL - have delivered over 35% and 18% YTD returns, respectively.
Prices of fertiliser have broken all records as global suppliers have been severely affected by the Russia-Ukraine war, which has dented the supply from Russia and Belarus. Individual prices of raw materials used for fertilisers such as ammonia, urea, potash, nitrogen, etc. have been on a run, driving fertilisers prices through the roof.
Image Source: © Bogdanhoda | Megapixl.com
As fertiliser prices are soaring, let us have a look at three ASX fertiliser stocks and their performance for this year so far.
- Nufarm Limited (ASX:NUF)
Melbourne-headquartered Nufarm is an Australian manufacturer of agricultural chemicals. With its operations in more than 100 countries across the world, the company has many product registrations under its belt. The company is now ranked the 8th largest crop protection company in the world, having a bellwether position in Australia with a market capitalisation of AU$2.5 billion.
NUF shares have been cheering investors snice the war broke out between Ukraine and Russia. The stock has delivered a lucrative return of 35.93% so far in 2022, last closing at AU$6.62 on 12 April 2022. The stock is also trading at an annual dividend yield of 0.6%.
- Incitec pivot Limited (ASX:IPL)
Incitec pivot is a multinational company that specialises in the manufacturing of fertilisers, explosives chemicals, and providing mining services. The company has a market capitalisation of AU$7.73 billion and clocked a higher net profit of AU$0.15 billion in last year, compared to AU$0.12 billion in FY20.
IPL shares have also delivered a decent return of 18.21% this year, to the last closing price of AU$3.96 on 12 April 2022. Similar to other fertiliser stocks, the IPL share price picked up momentum after February and is still continuing higher.
Due to supply chain disruptions caused by the Ukraine-Russia war; prices of fertilisers have been running hot this year. However, investors in ASX fertiliser stocks have been enjoying this price hike as fertiliser stocks are also witnessing an uptick ever since the war started.