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CVR Partners reports 2Q19 results

Published by
World Fertilizer,


CVR Partners has announced net income of US$19 million, or US$0.17 cents per common unit, on net sales of US$138 million for 2Q19, compared to a net loss of US$16 million, or US0.15 per common unit, on net sales of US$93 million for 2Q18.

Adjusted EBITDA was US$60 million for 2Q19, compared to Adjusted EBITDA of US$26 million for 2Q18.

“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 utilisation rates of 97% at Coffeyville and 98% 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 2Q19, CVR Partners’ consolidated average realised gate prices for UAN improved significantly over the prior year, up 14% to US$217/t, while ammonia was up 31% over the prior year to US$456/t. Average realised gate prices for UAN and ammonia were US$191/t and US$348/t, respectively, for 2Q18.

CVR Partners’ fertilizer facilities produced a combined 211 000 t of ammonia during 2Q19, of which 71 000 net t were available for sale while the rest was upgraded to other fertilizer products, including 316 000 t of UAN. In 2Q18, the fertilizer facilities produced 174 000 t of ammonia, of which 65 000 net t were available for sale while the remainder was upgraded to other fertilizer products, including 241 000 t of UAN.

Distributions

CVR Partners also announced that, on 24 July 2019, the Board of Directors of its general partner declared a 2Q9 cash distribution of US$0.14 per common unit, which will be paid on 12 August 2019, to common unitholders of record as of the close of market on 5 August 2019.

Read the article online at: https://www.worldfertilizer.com/nitrogen/30072019/cvr-partners-reports-2q19-results/

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