Rentech Nitrogen Partners LP reported first-quarter net income of net income of $3.1 million ($0.08 per diluted unit) compared to the year-ago $15.0 million ($0.38 per unit).
Revenues were $56.3 million, compared to the year-ago $59.6 million for the same period in the prior year. Revenues declined 18 percent from the prior-year quarter at the East Dubuque, Illinois facility; they increased 11 percent over the prior-year quarter at the Pasadena, Texas facility.
“First quarter financial and operating performance improved significantly from the fourth quarter. Results for the first quarter benefitted from the work we completed to expand and repair the facilities. The East Dubuque and Pasadena facilities are producing at or above new nameplate production capacities,” said D. Hunt Ramsbottom, Rentech CEO. “Springtime nitrogen application in our trade zone is off to a strong start. Second quarter results will likely show a sequential improvement, thanks to the anticipated improved spring season.”
East Dubuque net income was $11.2 million down from the year-ago $17.3 million. Revenues were $28.5 million, down from $34.5 million. The decrease was primarily the result of lower ammonia and UAN deliveries, and lower sales prices for all fertilizer products.
Pasadena recorded a first-quarter net loss of $0.8 million, compared to year-ago net income of $1.8 million. Revenues were up at $27.8 million from $25 million. The increase was primarily the result of higher ammonium sulfate (AS) sales volumes, which were almost completely offset by a decrease in ammonium sulfate sales prices. Both domestic and international sales increased as a result of higher ammonium sulfate production following the completion of the AS debottlenecking project in December 2013. Production of ammonium sulfate increased by approximately 14 percent during the first quarter as compared to the same period last year. Ammonium sulfate comprised approximately 77 percent of revenues from the Pasadena facility for the first quarter of 2014 and 69 percent for the same period last year.
Average AS sales prices per ton dropped by 40 percent for the three months ended March 31, 2014 as compared with the same period last year, largely due to the global decline in nitrogen pricing. Additional supply of AS produced by new caprolactam plants coming online in China also affected ammonium sulfate prices. AS is a byproduct of caprolactam production. Average sales price for ammonium sulfate also decreased this quarter due to a higher proportion of AS export sales as compared to the same period last year. Export sales are typically priced lower than domestic sales.