CVR Partners reports Q324 results
Published by Emilie Grant,
Editorial Assistant
World Fertilizer,
CVR Partners, LP (NYSE: UAN, “CVR Partners” or the “Partnership”), a manufacturer of ammonia and urea ammonium nitrate UAN solution fertilizer products, has announced net income of US$4million, or ¢36 per common unit, and EBITDA of US$36 million on net sales of US$125 million for Q324, compared to net income of US$1 million, or ¢7 per common unit, and EBITDA of US$32 million on net sales of US$131 million for Q323.
“CVR Partners posted solid operating results for the third quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 97 percent,” said Mark Pytosh, Chief Executive Officer. “Harvest is nearing completion and ammonia demand for the fall application has been strong.
“Compared to 2023, nitrogen fertilizer prices reset higher in the new planting season, attributable to solid customer demand and positive farmer economics,”Pytosh said.“We continue to focus on generating free cash flow and are pleased to declare a Q324 cash distribution of US$1.19 per common unit.”
Consolidated operations:
Production at CVR Partners’ fertilizer facilities decreased slightly compared to the Q323, producing a combined 212 000 tons of ammonia during the third quarter of 2024, of which 61 000 net t were available for sale while the rest was upgraded to other fertilizer products, including 321 000 t of UAN. During the third quarter of 2023, the fertilizer facilities produced a combined 217,000 tons of ammonia, of which 68,000 net tons were available for sale while the remainder was upgraded to other fertilizer products, including 358,000 tons of UAN.
For Q324, average realised gate prices for UAN showed an improvement compared to the prior year, up 3% to US$229 per t, and ammonia was up 9% over the prior year to US$399 per t. Average realised gate prices for UAN and ammonia were US$223 and US$365 per t, respectively, for Q323.
Distributions:
CVR Partners also announced that on October 28, 2024, the Board of Directors of the Partnership’s general partner declared a Q324 cash distribution of US$1.19 per common unit, which will be paid on November 18, 2024, to common unit holders of record as of November 8, 2024.
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 use of cash and cash reserves deemed necessary or appropriate by the Board.
Read the article online at: https://www.worldfertilizer.com/project-news/29112024/cvr-partners-reports-q324-results/
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