Nederland, Texas—OCI Partner LP reported a drop in fourth-quarter and annual 2015 net income, citing lower ammonia and methanol prices, somewhat offset by lower natural gas prices. Fourth-quarter net income was $14.5 million on revenues of $88.4 million, down from the year-ago $30.9 million and $99.3 million, respectively. Both the ammonia and methanol plants were offline eight days during the quarter due to an electrical power outage. Ammonia production was 80,000 mt with an average weighted price of $378/mt, compared to the year-ago 68,000 mt and $568/mt, respectively. The average natural gas price dropped to $2.32/mmBtu down from $4.07/mmBtu. Full-year net income was down 57 percent, to $52 million on revenues of $309.4 million from the year-ago $119.4 million and $402.8 million, respectively. OCI produced 235,000 mt of ammonia at an average price of $425/mt, down from 2014’s 259,000 mt and $503/mt, respectively. The average gas price was down at $2.73/mmBtu from $4.52/mmBtu. Due to lower profitability and OCI projections of the next 12 months at prevailing prices, the company foresaw potential loan breaches starting in second-quarter 2016. As a result, it has renegotiated certain loan covenants with insurers, extending maturity dates and increasing interest rates on outstanding loans.
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