LSB Industries Inc., Oklahoma City, reported improved results for the first quarter, lowering its net loss to $13.3 million on increased revenues of $98.1 million, compared to the year-ago loss of $19.5 million and revenues of $83.4 million. Adjusted EBITDA was up at $17.3 million from $15.6 million.
“We generated year-over-year improvement in net sales and adjusted EBITDA in the first quarter despite historically cold weather-induced shutdowns of two of our facilities in February,” stated Mark Behrman, LSB President and CEO. “All things considered, it was a good start to the year, and we expect to benefit in the coming quarters from the strong nitrogen industry dynamics being driven by robust agricultural demand and price improvement and the recovery of our industrial end markets as the pandemic’s effects on the economy subside.”
LSB said the year-over-year improvement in operating loss and adjusted EBITDA was primarily the result of higher selling prices along with stronger volumes partially offset by higher natural gas prices, as well as the overall net impact of weather-related plant shutdowns at Pryor, Okla., and El Dorado, Ark.
LSB said the increased demand for corn in China and other countries and dry conditions in South America have led to the highest corn prices in eight years, with this translating into significant increases in the price of fertilizers.
On the industrial side, the company noted that sales are up due to the ramp up of the new seven-year nitric acid offtake agreement, and that key end markets, including automotive, homebuilding, and power-generation, have recovered to pre-pandemic levels. The company added that further expansion is expected as the roll-out of COVID-19 vaccines continues.
| Net Sales by Sector | 1Q-21 | 1Q-20 | Percentage Change |
| Ag | $44.9 | $41.5 | 8 |
| Industrial | $40.3 | $35.2 | 14 |
| Mining | $12.9 | $6.7 | 92 |
| Total | $98.1 | $83.4 | 18 |
| Ag Product Tons Sold | 1Q-21 | 1Q-20 | Percentage Change |
| UAN | 109,243 | 114,689 | (5) |
| HDAN | 76,162 | 65,874 | 16 |
| Ammonia | 22,054 | 20,510 | 8 |
| Other | 2,750 | 2,946 | (7) |
| Total | 210,209 | 204,019 | 3 |
| Avg Selling Price per st | 1Q-21 | 1Q-20 | Percentage Change |
| UAN | $150 | $150 | 0 |
| HDAN | $207 | $198 | 4 |
| Ammonia | $283 | $235 | 21 |
| Industrial/Mining Tons | 1Q-21 | 1Q-20 | Percentage Change |
| Ammonia | 43,193 | 70,528 | (39) |
| AN, Nitric, and Other | 116,165 | 67,434 | 72 |
| Total | 159,358 | 137,962 | 16 |
| Tampa AA Benchmark mt | $348/mt | $250/mt | 39 |
| Avg Nat Gas Cost MMBtu | 3.15 | 2.09 | 51 |