Deerfield, Ill. — Terra Nitrogen Co. LP reported net earnings of $154.8 million ($4.67 per common unit) on sales of $195.6 million for the second quarter ending June 30, 2012, compared to the year-ago $128.9 million ($3.95 per unit) on sales of $198.6 million. The sales decline was due to lower ammonia and UAN average selling prices and lower ammonia sales volumes, which were mostly offset by higher UAN sales volumes. The decrease in ammonia prices resulted from a change in end-market customer mix toward industrial versus agricultural sales for the second quarter versus the year-ago quarter. Second-quarter ammonia volumes were 89,000 ($478/st) versus 96,000 st ($499/st), while UAN volumes were 521,000 st ($292/st), up from 484,000 st ($310/st). The average natural gas cost dropped to $3.06/mmBtu from $4.19/mmBtu. Terra declared a cash distribution for the quarter of $4.21 per unit payable Aug. 29 to holders of record Aug. 17. Six-month net income was $279 million ($8.45 per unit) on sales of $392.5 million, compared to the year-ago $249.8 million ($7.55 per unit) on sales of $394.6 million. Ammonia volumes were 184,000 st ($498/st), down from 204,000 st ($455/st), while UAN was off at 1.03 million st ($292/st) from the year-ago 1.07 million st ($281/st). Gas costs were $3.21/mmBtu, down from $4.24/mmBtu.
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