LSB Industries Inc., Oklahoma City, reported second-quarter net income of $23.7 million ($0.42 per diluted share) on net sales of $140.7 million, up from the year-ago loss of $365,000 ($0.34 per share) and sales of $105 million. Adjusted EBITDA was $46 million, up from the year-ago $29.2 million.
“We delivered significant year-over-year growth in both our top and bottom line in the second quarter,” said Mark Behrman, LSB President and CEO. “Our net sales increased 34 percent, while adjusted EBITDA, which reached an all-time record level for our chemical operations, was up almost 60 percent versus the same period last year.
“These outstanding results reflect robust demand and pricing trends for both our agricultural and industrial products, coupled with continued solid operating performance by our facilities and the operating leverage inherent in our business model,” Behrman added.
LSB said it benefited from an ag economy that saw the highest corn prices in eight years. The company also benefited from a 133% uptick in Tampa ammonia prices, as many of its industrial chemical contracts are indexed to that price.
LSB said the industrial business also continues to benefit from positive trends in its key end markets, including automotive, homebuilding, and power generation, which have recovered to above pre-pandemic levels, reflecting the beneficial impact of widespread COVID-19 vaccination throughout the U.S. The company said economic forecasts point to continued expansion, with The International Monetary Fund predicting 7 percent year-over-year GDP growth for the U.S. in 2021, the largest percentage increase since 1984.
LSB said positive market trends in both ag and industrial are expected to continue through 2021, and it anticipates significant growth in net sales and adjusted EBITDA for the full year relative to 2020.
Six-month net income was $10.4 million ($0.37 per share) on net sales of $238.8 million, up from the year-ago loss of $19.8 million ($1.35 per share) and sales of $188.4 million. Adjusted EBITDA was $63.3 million, up from $44.8 million.
| Sector Net Sales $/M | 2Q-21 | 2Q-20 | Percentage Change |
| Agricultural | 66.5 | 65 | 2 |
| Industrial | 60.6 | 29.6 | 105 |
| Mining | 13.6 | 10.5 | 30 |
| Total | 140.7 | 105 | 34 |
| Ag Products Sold (000 st) | 2Q-21 | 2Q-20 | Percentage Change |
| UAN | 122 | 111.9 | 9 |
| HDAN | 76.5 | 128 | (40) |
| Ammonia | 17 | 28.4 | (40) |
| Other | 6.6 | 9.3 | (28) |
| Total | 222.2 | 277.5 | (20) |
| Avg Selling Price $/st | 2Q-21 | 2Q-20 | Percentage Change |
| UAN | 231 | 149 | 55 |
| HDAN | 286 | 232 | 23 |
| Ammonia | 395 | 250 | 58 |
| Industrial/Mining (000 st) | 2Q-21 | 2Q-20 | Percentage Change |
| Ammonia | 67.5 | 62.1 | 9 |
| AN, Nitric Acid, Other | 118.3 | 73 | 62 |
| Total | 185.8 | 135.1 | 38 |
| Other Factors | 2Q-21 | 2Q-20 | Percentage Change |
| Avg Nat Gas (mmBtu) | 2.78 | 1.81 | 54 |
| Tampa NH3 $/mt | 545 | 234 | 133 |