RISK FACTORS.
−Removed: The disclosure below modifies the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019.
+Added: The disclosure below modifies the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 24, 2020.
These risks, along with those previously disclosed, could materially adversely affect our business, financial condition, results of operations or cash flows.
Our business and operations may be adversely affected by the COVID-19 pandemic.
−Removed: The recent outbreak and pandemic of the coronavirus disease 2019 (COVID-19) could have a material and adverse effect on our business, financial condition, results of operations or cash flows.
+Added: The outbreak and pandemic of the coronavirus disease 2019 (COVID-19) could have a material and adverse effect on our business, financial condition, results of operations or cash flows.
The rapid spread of COVID-19 has resulted in governmental authorities implementing numerous measures to try to contain the virus, such as travel bans and restrictions, quarantines, shelter in place orders and shutdowns.
−Removed: Even though our business operations have been designated as part of the critical infrastructure by the United States, United Kingdom and Canadian governments and the specific state and provincial governments in which we operate, these measures have impacted and may further impact all or portions of our workforce and operations.
+Added: Even though our business operations are designated as part of the critical infrastructure by the United States, United Kingdom and Canadian governments and the specific state and provincial governments in which we operate, these measures have impacted and may further impact all or portions of our workforce and operations.
If significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions, facility closures or other restrictions, we may be unable to meet customer demand or perform fully under our contracts.
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Any negative impacts on our customers, suppliers and third party service providers could negatively impact our business, financial condition, results of operations or cash flows.
−Removed: For example, global demand for nitrogen for industrial use has been negatively affected by the pandemic, and we expect this to continue at least into the second quarter of 2020 as economic activity remains low due to efforts to slow the spread of the virus.
+Added: For example, global demand for nitrogen for industrial use has been negatively affected by the pandemic, and we expect this to continue as long as economic activity remains low due to the impacts of the pandemic.
Restrictions on or disruptions of transportation, port closures or increased border controls or closures, or other impacts on domestic and global supply chains or distribution channels, could increase our costs, limit our ability to meet customer demand or otherwise have a material adverse effect on our business, financial condition, results of operations or cash flows.
−Removed: The COVID-19 pandemic has reduced and may further reduce the demand for crude oil.
−Removed: Reduced demand for crude oil could reduce the cost of nitrogen production outside of North America, increasing global nitrogen supply and reducing the market prices of our products.
+Added: The COVID-19 pandemic has reduced and may further reduce the demand for energy, including crude oil, as well as natural gas and coal, which are nitrogen feedstocks.
+Added: Reduced demand for nitrogen feedstocks has reduced and could further reduce the cost of nitrogen production outside of North America, increasing global nitrogen supply and reducing the market prices of our products.
Lower demand for crude oil could also reduce the supply and therefore increase the cost of natural gas, which is the principal raw material used in our production of nitrogen fertilizers.
In addition, lower crude oil prices, and a reduced demand for gasoline resulting from actions to slow the spread of COVID-19, have reduced and could further reduce ethanol production and therefore negatively impact the demand for corn, which is a significant factor driving customer demand for our nitrogen fertilizers.
+Added: The pandemic has also disrupted traditional food supply chains, which may have a material impact on livestock and food demand, including the demand for corn.
Each of these consequences could have a material adverse effect on our business, financial condition, results of operations or cash flows.
−Removed: While the COVID-19 pandemic did not have a material adverse effect on our reported results for the quarter ended March 31, 2020, we are unable to predict the ultimate impact it may have on our business, financial condition, results of operations or cash flows.
+Added: While the COVID-19 pandemic did not have a material adverse effect on our reported results for the three and six months ended June 30, 2020, we are unable to predict the ultimate impact it may have on our business, financial condition, results of operations or cash flows.
The extent to which our operations may be impacted by COVID-19 will depend on future developments, which are highly uncertain and cannot be accurately predicted, including the further spread of the virus, the duration of the COVID-19 outbreak and the type and duration of actions that may be taken by various governmental authorities in response to the outbreak.
−Removed: The pandemic has significantly increased global market uncertainty and caused an economic slowdown, and it is possible that it could cause a global recession.
+Added: The pandemic has significantly increased global market uncertainty and caused an economic slowdown, which has resulted in a global recession.
Persistent weakness in economic activity caused by a deterioration of global market and economic conditions could materially adversely affect our business, financial condition, results of operations or cash flows.
−Removed: The impact of COVID-19 may also exacerbate other risks discussed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, any of which could have a material adverse effect on us.
+Added: The impact of COVID-19 may also exacerbate other risks discussed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 24, 2020, any of which could have a material adverse effect on us.
This situation is changing rapidly and additional impacts may arise that we are not aware of currently.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.