CVR Partners, LP (NYSE:UAN), a manufacturer of ammonia and urea ammonium nitrate (UAN) solution fertilizer products, today announced net income of $19 million, or 17 cents per common unit, on net sales of $138 million for the second quarter 2019, compared to a net loss of $16 million, or 15 cents per common unit, on net sales of $93 million for the second quarter 2018. Adjusted EBITDA was $60 million for the second quarter of 2019, compared to Adjusted EBITDA of $26 million for the second quarter of 2018.
"We continued to experience wet weather across the Midwest during the second quarter of 2019, which impacted the spring planting season and hindered the movement of nitrogen fertilizer across the country," said Mark Pytosh, Chief Executive Officer of CVR Partners' general partner. "However, our plants ran well in the quarter, with ammonia utilization rates of 97 percent at Coffeyville and 98 percent at East Dubuque. Despite the weather impacts, we experienced solid demand for fertilizer during the second quarter and were able to deliver significant volumes of product to customers at netback prices much higher than the second quarter 2018," Pytosh said.
"In addition, CVR Partners created strong distributable cash in the 2019 second quarter and declared a distribution of 14 cents per unit," Pytosh concluded.
Consolidated Operations
For the second quarter of 2019, CVR Partners' consolidated average realized gate prices for UAN improved significantly over the prior year, up 14 percent to $217 per ton, while ammonia was up 31 percent over the prior year to $456 per ton. Average realized gate prices for UAN and ammonia were $191 per ton and $348 per ton, respectively, for the second quarter 2018.
CVR Partners' fertilizer facilities produced a combined 211,000 tons of ammonia during the second quarter of 2019, of which 71,000 net tons were available for sale while the rest was upgraded to other fertilizer products, including 316,000 tons of UAN. In the second quarter of 2018, the fertilizer facilities produced 174,000 tons of ammonia, of which 65,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 241,000 tons of UAN.
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Pretty good turn around. Notice the increase in ammonia +31% YOY. That helps Revenues and earnings. Maybe we have seen the bottom in fertilizer prices and next 24 months prices s/d revert to mean/average.
If the company can get these prices for fertilizer, revenues s/d be good for the year. If stock is priced for a 10% yield, stock s/d be $6.80/share.
EKS |
