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CF Industries Holdings reports 4Q net loss of US$320 million

Published by
World Fertilizer,


CF Industries Holdings Inc. has announced results for 4Q16.

4Q16 highlights

  • Net loss of US$320 million, or US$1.38 per diluted share; adjusted net loss of US$90 million, or US$0.39 per diluted share.
  • EBITDA loss of US$135 million; adjusted EBITDA of US$133 million.
  • New ammonia and urea plants at Port Neal Nitrogen Complex in operation.
  • Refinanced private placement notes.
  • Shipments of UAN in fourth quarter exceeded 2 million t, a company record.
  • Record fourth quarter exports above 500 000 t.
  • Net loss includes US$134 million non-cash impairment charge related to Point Lisas Nitrogen Ltd (PLNL).

Full year highlights

  • Net loss of US$277 million, or US$1.19 per diluted share; adjusted net earnings of US$109 million or US$0.47 per diluted share.
  • EBITDA of US$395 million; adjusted EBITDA of US$858 million.
  • Accelerated tax depreciation on capacity expansion projects driving estimated federal and state tax refunds of approximately
  • US$800 million, expect to receive in 3Q17.
  • Record exports of approximately 1.4 million t in 2016, 110% increase over prior year.

CF Industries Holdings Inc. has announced a 4Q16 net loss attributable to common stockholders of US$320 million, or US$1.38 per diluted share, and adjusted net loss of US$90 million, or US$0.39 per diluted share. Fourth quarter 2016 EBITDA loss was US$135 million, and adjusted EBITDA was US$133 million. These results compare to fourth quarter 2015 net earnings attributable to common stockholders of US$27 million, or US$0.11 per diluted share; adjusted net earnings of US$168 million, or US$0.72 per diluted share; EBITDA of US$254 million; and adjusted EBITDA of US$445 million. Fourth quarter 2016 results include a realized loss on natural gas hedges of US$5 million for the fourth quarter of 2016, compared to a realised loss on natural gas hedges of US$30 million for the fourth quarter of 2015.

For the full year 2016, net loss attributable to common stockholders was US$277 million, or US$1.19 per diluted share, and adjusted net earnings was US$109 million, or US$0.47 per diluted share. Full year 2016 EBITDA was US$395 million, and adjusted EBITDA was US$858 million. These results compare to full year 2015 net earnings attributable to common stockholders of US$700 million, or US$2.96 per diluted share; adjusted net earnings for the full year 2015 of US$896 million, or US$3.79 per diluted share; EBITDA of US$1.67 billion; and adjusted EBITDA of US$1.98 billion. Full year 2016 results include a realised loss on natural gas hedges of US$133 million, compared to a realised loss on natural gas hedges of US$70 million for the full year 2015.

The company expects to receive tax refunds of approximately US$800 million due to the carryback of certain federal and state tax losses from the 2016 tax year to prior periods. These tax losses are primarily related to accelerated tax depreciation of the capacity expansion projects that were placed in service in 2016. The cash refunds related to this tax loss carryback are expected to be received in the third quarter of 2017.

During the fourth quarter, the company completed the issuance of US$1.25 billion of senior secured notes. The proceeds were used primarily to fund the prepayment of the US$1.0 billion principal amount of CF Industries, Inc.'s senior notes due 2022, 2025 and 2027, plus a related make-whole amount of approximately US$170 million.

CF Industries has completed a review of its equity method investment in PLNL, the company's 50 percent interest in an ammonia production joint venture located in the Republic of Trinidad and Tobago. This review assessed the recoverability of the company's carrying value of the investment. During the fourth quarter of 2016, the company recognized an impairment charge of US$134 million relating to its investment in PLNL due to projected longer-term challenges with gas availability and potential price increases from the government-controlled gas supplier.

Read the article online at: https://www.worldfertilizer.com/nitrogen/17022017/cf-industries-holdings-reports-4q-net-loss-of-us320-million/


 

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