Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported
net earnings of $28.8 million on net sales of
$90.2 million for the quarter ended September 30, 2016.
This compares to net earnings of $69.4 million on net sales of
$150.2 million for the 2015 third quarter. Net earnings
allocable to common units was $19.2 million ($1.04 per common
unit) and $41.2 million ($2.23 per common unit) for the 2016
and 2015 third quarters, respectively. Results for the third
quarter of 2016 included an unrealized net mark-to-market loss on
natural gas derivatives of $3.3 million compared to a loss of
$17.0 million in the third quarter of 2015. The derivative
portfolio at September 30, 2016 includes natural gas
derivatives that hedge a portion of natural gas purchases through
2018.
For the first nine months of 2016, TNCLP reported net earnings
of $165.2 million on net sales of $324.9 million. This compares to
net earnings of $227.7 million on net sales of $430.4 million for
the first nine months of 2015. Net earnings allocable to common
units was $105.6 million ($5.71 per common unit) and $140.0 million
($7.57 per common unit) for the first nine months of 2016 and 2015,
respectively. Results for the first nine months of 2016 included an
unrealized net mark-to-market gain on natural gas derivatives of
$21.7 million compared to an unrealized net mark-to-market
loss of $10.5 million for the first nine months of 2015.
Analysis of Results
Net sales for the third quarter of 2016 totaled
$90.2 million, compared to $150.2 million for the third
quarter of 2015, as lower average realized selling prices for
ammonia and UAN, decreased sales volumes of UAN and higher natural
gas costs were partially offset by increased sales volumes of
ammonia. Ammonia and UAN average selling prices were lower in the
third quarter of 2016 due to greater nitrogen supply driven by
global capacity additions, lower manufacturing and ocean freight
costs, delays in customer purchases, and softer global ammonia
demand from industrial users including phosphate fertilizer
production. UAN sales volume decreased 24 percent and ammonia sales
volume increased 37 percent in the third quarter of 2016 compared
to the third quarter of 2015. The decrease in UAN sales volumes was
due primarily to delays in customer purchases of our products
resulting from oversupplied global nitrogen market conditions. The
increase in ammonia sales volume was due to favorable demand for
ammonia compared to UAN.
Comparing the third quarter of 2016 to 2015, TNCLP’s:
- Ammonia average selling prices
decreased by 35 percent and UAN average selling prices decreased by
33 percent;
- Ammonia sales volume increased by 37
percent and UAN sales volume decreased by 24 percent; and
- Realized natural gas cost per MMBtu
increased by 4 percent.
Cash Distribution
Cash distributions depend on TNCLP’s earnings as well as cash
requirements for working capital needs and capital expenditures.
For the first nine months of 2016, capital expenditures were
$24.8 million as compared to $81.9 million in 2015, with
the decrease primarily due to the large plant turnaround activities
in 2015 that did not recur in 2016. For the full year 2016, TNCLP
is expected to have capital expenditures in the range of $35
million to $40 million.
TNCLP reported on November 2, 2016, the declaration of a
cash distribution for the quarter ended September 30, 2016, of
$1.77 per common unit payable November 30, 2016 to holders of
record as of November 15, 2016. This compares to a cash
distribution of $2.81 per common unit for the quarter ended
September 30, 2015.
Cash distributions per common unit also vary based on increasing
amounts allocable to the General Partner when cumulative
distributions exceed targeted levels. With this distribution, TNCLP
cumulative distributions continue to exceed targeted levels.
This release serves as a qualified notice to nominees and
brokers as provided for under Treasury Regulation Section
1.1446-4(b). Please note that 100 percent of the Partnership’s
distributions to foreign investors are attributable to income that
is effectively connected with a United States trade or business.
Accordingly, the Partnership’s distributions to foreign investors
are subject to federal income tax withholding at the highest
effective tax rate.
About TNCLP
Terra Nitrogen Company, L.P. is a leading manufacturer of
nitrogen fertilizer products.
TNCLP is the sole limited partner of Terra Nitrogen, Limited
Partnership (TNLP), owner of the Verdigris, Oklahoma manufacturing
facility and related assets. Terra Nitrogen GP Inc., an indirect,
wholly owned subsidiary of CF Industries Holdings, Inc., is the
General Partner of TNCLP and exercises full control over all of
TNCLP’s business affairs.
Forward-Looking Statements
All statements in this communication, other than those relating
to historical facts, are forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to a number of assumptions, risks and
uncertainties, many of which are beyond TNCLP’s control, which
could cause actual results to differ materially from such
statements. Important factors that could cause actual results to
differ materially from expectations include, among others:
- Risks related to TNCLP’s reliance on
one production facility;
- The cyclical nature of TNCLP’s business
and the agricultural sector;
- The volatility of natural gas prices in
North America;
- The global commodity nature of TNCLP’s
fertilizer products, the impact of global supply and demand on
TNCLP’s selling prices, and the intense global competition from
other fertilizer producers;
- Conditions in the U.S. agricultural
industry;
- Difficulties in securing the supply and
delivery of raw materials, increases in their costs or delays or
interruptions in their delivery;
- Reliance on third party providers of
transportation services and equipment;
- The significant risks and hazards
involved in producing and handling TNCLP's products against which
it may not be fully insured;
- Risks associated with cyber
security;
- Weather conditions;
- Potential liabilities and expenditures
related to environmental, health and safety laws and regulations,
and permitting requirements;
- Future regulatory restrictions and
requirements related to greenhouse gas emissions;
- The seasonality of the fertilizer
business;
- Risks involving derivatives and the
effectiveness of TNCLP’s risk measurement and hedging
activities;
- Limited access to capital;
- Acts of terrorism and regulations to
combat terrorism;
- Risks related to TNCLP’s dependence on
and relationships with CF Industries;
- Deterioration of global market and
economic conditions;
- Risks related to TNCLP's partnership
structure and control of TNCLP’s General Partner by CF
Industries;
- Changes in TNCLP’s available cash for
distribution to its unitholders, due to, among other things,
changes in its earnings, the amount of cash generated by its
operations and the amount of cash reserves established by its
General Partner for operating, capital and other requirements;
- The conflicts of interest that may be
faced by the executive officers of TNCLP’s General Partner, who
operate both TNCLP and CF Industries; and
- Tax risks to TNCLP's common unitholders
and changes in TNCLP’s treatment as a partnership for U.S. or state
income tax purposes.
More detailed information about factors that may affect TNCLP’s
performance may be found in its filings with the Securities and
Exchange Commission, including its most recent periodic reports
filed on Form 10-K and Form 10-Q, which are available through CF
Industries’ website. Forward-looking statements are given only as
of the date of this release and TNCLP disclaims any obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Terra Nitrogen Company, L.P. news announcements are also
available on CF Industries’ website, www.cfindustries.com.
TERRA NITROGEN COMPANY, L.P. CONSOLIDATED
BALANCE SHEETS (unaudited) September 30,
December 31, 2016 2015 (in millions, except
for units) ASSETS Current assets: Cash and cash
equivalents $ 48.7 $ 106.4 Due from affiliates of the General
Partner 6.0 10.4 Accounts receivable 0.5 0.8 Inventories 10.1 10.7
Prepaid expenses and other current assets 0.7 — Total
current assets 66.0 128.3 Property, plant and equipment, net 300.9
307.0 Other assets 10.8 8.4 Total assets $ 377.7 $
443.7
LIABILITIES AND PARTNERS' CAPITAL Current liabilities:
Accounts payable and accrued expenses $ 24.3 $ 23.5 Due to
affiliates of the General Partner 1.7 4.5 Other current liabilities
3.6 15.9 Total current liabilities 29.6 43.9 Other
liabilities 4.4 12.8 Partners' capital: Limited partners'
interests, 18,501,576 Common Units authorized, issued and
outstanding 285.1 308.5 Limited partners' interests, 184,072 Class
B Common Units authorized, issued and outstanding 1.9 2.3 General
partner's interest 56.7 76.2 Total partners' capital 343.7
387.0 Total liabilities and partners' capital $ 377.7
$ 443.7
TERRA NITROGEN COMPANY, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Three months ended Nine months ended
September 30, September 30, 2016
2015 2016 2015 (in millions, except
per unit amounts) Net sales: Product sales to affiliates of the
General Partner $ 90.1 $ 149.8 $ 324.5 $ 429.3 Other income from an
affiliate of the General Partner 0.1 0.1 0.4 0.4 Other income —
0.3 — 0.7 Total 90.2 150.2 324.9 430.4 Cost of
goods sold: Materials, supplies and services 50.2 69.5 125.0 166.9
Services provided by affiliates of the General Partner 7.2
6.6 21.3 20.7 Gross margin 32.8 74.1 178.6 242.8
Selling, general and administrative services provided by affiliates
of the General Partner 4.0 3.9 11.8 11.8 Other general and
administrative expenses — 0.8 1.7 3.3 Earnings
from operations 28.8 69.4 165.1 227.7 Interest income — —
0.1 — Net earnings $ 28.8 $ 69.4 $
165.2 $ 227.7 Allocation of net earnings: General Partner $
9.3 $ 27.5 $ 58.0 $ 85.5 Class B Common Units 0.3 0.7 1.6 2.2
Common Units 19.2 41.2 105.6 140.0 Net
earnings $ 28.8 $ 69.4 $ 165.2 $ 227.7 Net
earnings per Common Unit $ 1.04 $ 2.23 $ 5.71
$ 7.57
TERRA NITROGEN COMPANY, L.P.
SUMMARIZED OPERATING INFORMATION Three months
ended Nine months ended September 30,
September 30, 2016 2015 2016
2015 Sales volume (tons in thousands) Ammonia 103 75
306 296 UAN(1) 415 544 1,231 1,207 Average selling prices
(per ton) Ammonia $ 297 $ 459 $ 347 $ 492 UAN(1) 142 211 177 234
Cost of natural gas (per MMBtu): Purchased natural gas
costs(2) $ 2.61 $ 2.57 $ 2.12 $ 2.61 Realized derivatives loss(3)
0.11 0.05 0.54 0.21 Cost of natural gas $ 2.72
$ 2.62 $ 2.66 $ 2.82
_________________________________________________
(1) The nitrogen content of UAN is 32% by weight. (2)
Represents the cost of natural gas purchased during the period for
use in production. (3) Represents realized gains and losses on
natural gas derivatives settled during the period. Excludes
unrealized mark-to-market gains and losses on natural gas
derivatives.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161102006841/en/
Terra Nitrogen Company, L.P.Anthony M. FuscoInvestor
Relations847-405-2598afusco@cfindustries.com
Terra Nitrogen Company . (NYSE:TNH)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Terra Nitrogen Company . (NYSE:TNH)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024