Corrects 7th paragraph. This shows that reduction in predicted potash shipments will not be specific to any company.

(Reuters) – Nutrien (NYSE:) Ltd Monday increased its full-year earnings outlook well beyond estimates following a 10-fold increase in profit for the first quarter. This is largely due to the fact that world’s biggest fertilizer company reaps strong benefits from soaring crop nutrition prices.

As a result of sanctions on Russia’s invasion of Ukraine, prices of key crop nutrients, such as potash, rose sharply in quarter three.

The strong demand for fertilizer is also a result of the inflation-induced rise in major crop prices, which has driven farmers to boost production.

In a statement, Ken Seitz, interim chief executive officer stated that “global agriculture and the crop input markets have been impacted by unprecedented supply disruptions which have contributed to higher commodity price and increased concerns about global food security.”

Seitz stated that Nutrien might be able expand its production of low-cost fertilizers.

The company’s shares were up by about 3% during extended trading.

However, the company forecasts a reduction in global potash shipment for this year due to supply uncertainty from Russia and Belarus.

Nutrien anticipates 2022 adjusted earnings between $16.20 and $18.70 per stock, as compared to its prior forecast of $10.20 – $11.80 per shared. According to Refinitiv data, analysts were anticipating $15.20 per shared.

From $133million, which was 22 cents per share a year ago, net earnings increased to $1.39billion, or $2.49 per shares, during the March 31 quarter.

The company posted a profit at $2.70 per share excluding items but below estimates of $2.75

Mosaic Co. (NYSE:) was the largest global producer of finished products phosphates. It posted an almost sevenfold increase in its quarterly profits, which narrowly beat expectations.

Mosaic stated that its potash and fertilizer shipments had been delayed due to poor rail performance. He also said that the rail cycle times wouldn’t recover to their normal levels before 2022’s second half.

Analysts expected $2.40, but the company actually earned $2.41 per diluted share.