Terra 4Q Revenues Up on Higher NH3 Volumes, UAN Prices; Gain Reported on JV Sale

Terra Nitrogen Co. LP (TNCLP), Deerfield, Ill., reported fourth-quarter net earnings of $49.4 million on sales of $97.5 million, up from the year-ago $44.1 million and $93.4 million, respectively. Net earnings allocable to common unit were $26.6 million ($1.44 per common unit), down from the year-ago $34.3 million ($1.85 per unit). TNCLP reported a $14.3 million gain of the October sale of TNCLP’s 50 percent joint venture interest in the Oklahoma CO2 Partnership (GM Nov. 3, 2017), which added $0.42 to earnings per common unit.

Fourth-quarter sales were up due to higher ammonia sales volumes (16 percent) and higher UAN selling prices (7 percent). They were partially offset by lower ammonia prices (10 percent) and UAN volumes (2 percent). Realized natural gas costs per mmBtu were down 8 percent, to $2.64 from $2.88.

Full-year net earnings were $153.9 million on sales of $397.2 million, down from $209.3 million and $418.3 million, respectively. Net earnings allocable to common units were $109.8 million ($5.93 per unit), down from $139.9 million ($7.56 per unit).

TNCLP will pay a cash dividend for the fourth quarter of $2.03 per common unit, up from the year-ago $1.22 per unit.

As reported earlier, CF Industries Holdings Inc., Deerfield, Ill., will be buying up the minority shares (24.9 percent) of TNCLP on April 2 for a price of $84.033 per unit, or $390 million in total (GM Feb. 9, p. 1).