LSB Industries Inc. reported net income of $2.3 million on net sales of $184.3 million for the third quarter, up from the year-ago loss of $8.9 million on $127.2 million, respectively. Adjusted EBITDA was $49.9 million, up from the year-ago $37.7 million.
“We delivered strong top- and bottom-line growth as compared to last year despite executing two turnarounds in this year’s third quarter versus one in last year’s third quarter,” said Mark Behrman, LSB’s President and CEO. “We continued to benefit from higher selling prices compared to last year, and our strategic commercial initiatives that enabled us to optimize our sales mix in the face of a rapidly changing market environment. Pricing remains well above year-ago levels, and there are multiple supply and demand factors currently at play that we expect will continue to support strong pricing for the final two months of 2022 and for 2023, if not longer.
“Even with the reduced volumes resulting from our third-quarter scheduled maintenance activities at our Pryor and El Dorado facilities, we once again generated meaningful positive operating cash flow,” he added, noting that the company’s strong balance sheet enabled it to complete a total of $100 million of share repurchases since the program began in May. “As we head into the final months of 2022 we are highly enthusiastic about our near- and longer-term prospects for profitable growth, free cash flow generation, and increased shareholder value given the favorable outlook for our markets coupled with the company-specific initiatives we have underway.”
Nine-month net income was $164.5 million on sales of $688.1 million versus the year-ago positive $1.5 million and $366 million, respectively. Adjusted EBITDA was $309.2 million, up from the year-ago $100.9 million.
| Product (Gross Sales $) | 3Q-22 | 3Q-21 | % Change |
| AN & Nitric Acid | 66,161 | 47,453 | 39 |
| UAN | 50,459 | 26,034 | 94 |
| Ammonia | 52,075 | 42,307 | 23 |
| Other | 15,578 | 11,405 | 37 |
| Total | 184,273 | 127,199 | 45 |
| Sales Volumes st | 3Q-22 | 3Q-21 | % Change |
| AN & Nitric Acid | 125,446 | 135,279 | (7) |
| UAN | 115,352 | 82,555 | 40 |
| Ammonia | 55,825 | 80,001 | (30) |
| Total | 296,623 | 297,835 | (0) |
| Avg Selling Price $/st | 3Q-22 | 3Q-21 | % Change |
| AN & Nitric Acid | 458 | 290 | 58 |
| UAN | 417 | 305 | 37 |
| Ammonia | 906 | 515 | 76 |
| Other Factors | 3Q-22 | 3Q-21 | % Change |
| Avg Nat Gas ($/mmBtu) | 7.65 | 3.71 | 106 |
| Tampa NH3 $/mt | 1,093 | 610 | 79 |
| UAN Southern Plains | $/st 482 | 355 | 36 |