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CVR Partners reports 3Q19 results

Published by
World Fertilizer,


CVR Partners, LP, a manufacturer of ammonia and urea ammonium nitrate (UAN) solution fertilizer products, has announced a net loss of US$23 million, or US$0.20 per common unit, on net sales of US$89 million for 3Q19, compared to a net loss of US$13 million, or US$0.12 per common unit, on net sales of US$80 million for 3Q18. Adjusted EBITDA was US$18 million for 3Q19, compared to US$19 million for 3Q18.

“CVR Partners had strong production for the 2019 third quarter,” said Mark Pytosh, Chief Executive Officer of CVR Partners’ general partner. “Coffeyville and the East Dubuque plant leading up to its scheduled turnaround achieved 98% ammonia utilisation rates during the quarter. This production coupled with higher UAN sales volumes and stronger UAN and ammonia product pricing over the prior year period led to solid financial results. We are pleased to announce a US$0.07 per unit cash distribution for the quarter.

“Looking ahead, East Dubuque successfully completed its planned turnaround in October and is now coming back up to full production. While we await the completion of the fall harvest and the beginning of the fall ammonia application, crop prices recently have risen and should lead to improved planted acres for the spring planting season,” Pytosh said.

Consolidated operations

For 3Q19, CVR Partners’ consolidated average realised gate prices for UAN improved over the prior year, up 7% to US$182/t, while ammonia was up 13% over the prior year to US$337/t. Average realised gate prices for UAN and ammonia were US$170/t and US$297/t, respectively, for 3Q18.

CVR Partners’ fertilizer facilities produced a combined 196 000 t of ammonia during 3Q19, of which 56 000 net t were available for sale while the rest was upgraded to other fertilizer products, including 318 000 t of UAN. In 3Q18, the fertilizer facilities produced 212 000 t of ammonia, of which 63 000 net t were available for sale while the remainder was upgraded to other fertilizer products, including 338 000 t of UAN.

Distributions

CVR Partners also announced that, on 22 October 2019, the Board of Directors of its general partner declared a 3Q19 cash distribution of US$0.07 per common unit, which will be paid on 12 November 2019, to common unitholders of record as of the close of market on 4 November 2019.

CVR Partners is a variable distribution master limited partnership. As a result, its 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.

Read the article online at: https://www.worldfertilizer.com/nitrogen/24102019/cvr-partners-reports-3q19-results/

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