CVR Partners announces 4Q19 and full year 2019 results

CVR Partners had a net loss of US$35 million, or 31 cents per common unit, on net sales of US$404 million for full-year 2019, compared to a net loss of US$50 million, or 44 cents per common unit, on net sales of US$351 million for full-year 2018. Adjusted EBITDA for full-year 2019 was US$117 million, compared to US$90 million for 2018.

“For the full-year 2019, CVR Partners achieved year-over-year increases in net income and EBITDA,” said Mark Pytosh, CEO of CVR Partners’ general partner. “The business also achieved higher fertilizer sales volumes and stronger product pricing during the year, and as a result, distributed a total of 40 cents per unit during 2019 despite continued weather impacts that created less than desirable market conditions during the year.

“Looking forward, we anticipate strong demand for spring nitrogen fertilizer application and currently expect 92 million to 95 million acres of corn to be planted this year,” Pytosh said.

Consolidated operations

For 4Q19, CVR Partners’ average realised gate prices for UAN decreased over the prior year, down 2% to US$176/t, while ammonia was flat over the prior year at US$324/t. Average realised gate prices for UAN and ammonia were US$180/t and US$324/t, respectively, for 4Q18.

CVR Partners’ fertilizer facilities produced a combined 180 000 t of ammonia during 4Q19, of which 55 000 net t were available for sale while the rest was upgraded to other fertilizer products, including 286 000 t of UAN. During 4Q18, the fertilizer facilities produced 209 000 t of ammonia, of which 59 000 net t were available for sale while the remainder was upgraded to other fertilizer products, including 357 000 t of UAN.

For full-year 2019, the average realised gate price for UAN increased 15% to US$199/t, coupled with a 20% increase in ammonia to US$392/t. Average realised gate prices for UAN and ammonia were US$173/t and US$328/t, respectively, for the year ended 2018. In 2019, the company's fertilizer facilities produced a combined 766 000 t of ammonia, of which 223 000 t were available for sale, while the rest was upgraded to other fertilizer products, including 1 255 000 t of UAN. For the year ended 2018, the fertilizer facilities produced 794 000 t of ammonia, of which 246 000 net t were available for sale while the remainder was upgraded to other fertilizer products, including 1 276 000 t of UAN.

Read the article online at: https://www.worldfertilizer.com/nitrogen/20022020/cvr-partners-announces-4q19-and-full-year-2019-results/