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CVR Partners Reports First Quarter Results, Cash Distribution
Kansas Ag Connection - 05/03/2016

CVR Partners, LP, a manufacturer of ammonia and urea ammonium nitrate (UAN) solution fertilizer products, announced first quarter 2016 net income of $18.0 million, or 25 cents per fully diluted common unit, on net sales of $73.1 million, compared to net income of $29.8 million, or 41 cents per fully diluted common unit, on net sales of $93.1 million for the first quarter a year earlier.

Adjusted EBITDA, a non-GAAP financial measure, was $27.9 million for the first quarter of 2016, compared to adjusted EBITDA of $38.4 million for the first quarter of 2015.

"CVR Partners reported strong operational results for the 2016 first quarter," said Mark Pytosh, chief executive officer. "Our Coffeyville fertilizer plant continued to operate well following last year's turnaround and has maintained its performance since posting record production rates for the fourth quarter of 2015.

"Through April, we have seen steady demand for nitrogen fertilizer to meet the expected substantial spring planting of corn acres in the United States," Pytosh said.

"On April 1, the Partnership completed its acquisition of Rentech Nitrogen Partners, L.P.," he continued. "We are confident in the strategic benefits of the combination and remain focused on delivering the synergies that were outlined in our August announcement."

For the first quarter of 2016, average realized gate prices for UAN and ammonia were $209 per ton and $367 per ton, respectively, compared to $263 per ton and $553 per ton, respectively, for the same period in 2015.

CVR Partners produced 113,700 tons of ammonia and purchased an additional 3,000 tons of ammonia during the first quarter of 2016, of which 15,100 net tons were available for sale while the rest was upgraded to 248,200 tons of UAN. In the 2015 first quarter, the plant produced 96,000 tons of ammonia and purchased an additional 21,200 tons of ammonia, of which 14,600 net tons were available for sale while the remainder was upgraded to 252,100 tons of UAN.

On-stream factors during the 2016 first quarter were 97.7 percent for gasification, 97.2 percent for the ammonia synthesis loop and 91.4 percent for the UAN conversion facility.

CVR Partners also announced a first quarter 2016 distribution of 27 cents per common unit, which includes approximately 6 cents per common unit of available cash associated with Rentech Nitrogen Partners' first quarter 2016 results. The distribution, as set by the board of CVR GP, LLC, the general partner of CVR Partners, will be paid on May 16, 2016, to unitholders of record on May 9, 2016.

CVR Partners is a variable distribution master limited partnership. As a result, its quarterly distributions, if any, will vary from quarter to quarter due to several factors, including, but not limited to, its operating performance, fluctuations in the prices received for its finished products, maintenance capital expenditures, and cash reserves deemed necessary or appropriate by the board of directors of its general partner.


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