Sugar Land, Texas — CVR Partners LP, which owns a nitrogen plant in Coffeyville, Kan., reported net income of $35.1 million ($0.48 per diluted common unit) on sales of $81.4 million for the second quarter ending June 30, 2012, compared to the year-ago $38.2 million ($0.42 per unit) on sales of $80.7 million. Adjusted EBITDA was $44.1 million, down from $45 million. “Solid execution throughout the organization resulted in another strong quarter for the partnership,” said Byron Kelley, CVR president and CEO. “In addition, we leveraged a continued environment of robust fertilizer pricing during the second quarter and secured orders for substantially all of our targeted production for the third quarter and a significant majority of the fourth quarter. We also began placing orders for a number of early 2013 deliveries.” The company has announced a second-quarter distribution of $0.60 per unit and has reaffirmed calendar year guidance of $1.65-$1.85 per unit, which takes into account a biennial turnaround in the fourth quarter. Kelley said CVR has made important progress on its UAN expansion and expects to have a full year of increased UAN production in 2013. Second-quarter UAN sales were up at 177,200 st with an averaged plant gate price of $329/st, compared to the year-ago 166,100 st ($300/st). Ammonia sales were 29,400 st ($568/st) versus 33,600 st ($574/st). Six-month income was up 18.9 percent, to $65.3 million ($0.89 per unit) on sales of $159.7 million from the year-ago $54.9 million ($0.42 per unit) on sales of $138.1 million. Adjusted EBITDA was $82.1 million, up from $70.9 million. Six-month UAN sales were down at 335,500 st ($322/st) versus the year-ago 345,400 st ($252/st), while ammonia was 59,300 st ($591/st) versus 60,900 st ($570/st).
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