Skip to main content

LSB Industries, Inc. has announced operating results for Q324

Published by , Editorial Assistant
World Fertilizer,


LSB Industries, Inc. has announced operating results for the third quarter ended September 30, 2024. Highlights include an injury free year and successful turnaround of the Pryor facility, as well as progress towards energy transition projects and completing the pre-FEED study on the Houston Ship Channel project.

Third Quarter 2024 Results and Recent Highlights:

  • Net sales of US$109.2 million compared to US$114.3 million in the third quarter of 2023.
  • Net loss of US$25.4 million compared to a net loss of US$7.7 million in the third quarter of 2023; the third quarter 2024 net loss included approximately US$16.3 million of turnaround costs and approximately US$5.6 million of one-time non-cash charges related to the write-down of assets taken out of service.
  • Diluted EPS of US$(0.35) compared to US$(0.10) for the third quarter of 2023; the third quarter 2024 diluted EPS included approximately US$(0.24) per share of turnaround costs and one-time non-cash charges.
  • Adjusted EBITDA* of US$17.5 million compared to US$9.2 million in the third quarter of 2023.
  • Cash Flow from Operations of US$17.1 million.
  • Capital Expenditures of US$31.0 million reflect investments in reliability and expanded UAN capacity at Pryor Facility.
  • Total cash and debt of approximately US$199.4 million and approximately US$487.0 million, respectively, as of September 30, 2024.

“I want to first thank my entire team for another injury free quarter. Our commitment to safety continues to ensure that everyone goes home safe. We delivered an increase in adjusted EBITDA relative to the third quarter of last year," stated Mark Behrman, LSB Industries' Chairman, President and CEO. "The year-over-year improvement was driven by higher ammonia prices coupled with lower natural gas prices compared to a year ago and an increase in industrial product production and sales. These favorable dynamics more than offset the impact of the planned maintenance activities we conducted during the quarter.”

“Our balance sheet remains strong, providing us with ample financial flexibility to invest in the growth of our business. During the third quarter, we completed an injury free and successful turnaround of our Pryor facility. The investments we made at Pryor were focused not only on improving its reliability and daily ammonia production volume, but also included the debottlenecking of the facility's urea plant. We expect this to lead to an incremental 75 000 tpy of UAN production which we are ramping up over the fourth quarter. We also completed the construction of an additional 5000 t of nitric acid storage at our El Dorado facility providing us with the ability to capitalise on incremental sales opportunities not previously available to us. This should also enable us to further optimise our sales mix to maximise margins. We continue to deploy capital to improve the reliability and safety of our facilities with a turnaround at our Cherokee facility this November and a turnaround of our El Dorado facility scheduled for the third quarter of 2025. These planned maintenance and upgrade activities should lead to increased production volumes and incremental EBITDA and cash flow.”

“We continue to make progress with our two energy transition projects. We expect to begin producing low carbon products at our El Dorado facility beginning in 2026 pending the approval by the EPA of the Class VI permit submitted by our partner, Lapis Energy. We are working with Lapis and the EPA towards the issuance of our permit to construct, that will allow us to begin drilling two injection wells on our site in El Dorado. The permit is the critical path item for us. Supporting the economics of this project, earlier this year, we were pleased to announce our first off-take customer for low carbon ammonium nitrate solution to be produced at El Dorado.”

“With respect to our Houston Ship Channel project, we have completed our Pre-FEED study and are working through the results, engaging with potential customers and preparing to select an engineering contractor for the FEED study. We expect to start a full FEED study during the first half of 2025 that should be completed by mid-2026, after which we anticipate moving on to FID.”

“We view our low carbon product strategy as a potential multi-year earnings growth engine that complements our near-term opportunities to increase our production and sales volumes from our core manufacturing assets.”

Read the article online at: https://www.worldfertilizer.com/project-news/30102024/lsb-industries-inc-reports-operating-results-for-the-q324/

You might also like

 
 

Embed article link: (copy the HTML code below):