CVR Partners LP reported first-quarter net income of $101.9 million on net sales of $226.3 million, up from the year-ago $93.7 million and $222.9 million, respectively. EBITDA saw a slight uptick to $124.3 million from $123.4 million.
“CVR Partners achieved solid results for the 2023 first quarter led by record production, including a combined ammonia utilization rate of 105%, offset somewhat by lower fertilizer pricing during the quarter,” said Mark Pytosh, CEO of CVR Partners’ general partner. “The maintenance work that was completed during last year’s turnarounds has improved reliability at both nitrogen fertilizer facilities, and we plan to continue to invest in additional reliability projects during the next two to three years.” The year-ago utilization rate was 88%.
“The spring pre-planting season is off to a robust start, and the US Department of Agriculture estimates that planted corn acres will increase approximately 4% this spring compared to a year ago, driving strong demand for nitrogen fertilizer,” he added. “Our focus for the remainder of the year is on safe, reliable operations while maximizing our free cash generation.
“I won’t promise 105% for forward quarters,” Pytosh told analysts, “but we feel like we’ve addressed some of the reliability issues. Our target is to operate at 95-100% on name plate.”
CVR declared a first-quarter 2023 cash distribution of $10.43 per common unit, to be paid May 22, 2023, to common unitholders of record as of May 15, 2023.
| Sales (000 st) | 1Q-23 | 1Q-22 |
| Ammonia | 42 | 40 |
| UAN | 359 | 322 |
| Plant Gate Price $/st | 1Q-23 | 1Q-22 |
| Ammonia | 888 | 1,055 |
| UAN | 457 | 496 |
| Production (000 st) | 1Q-23 | 1Q-22 |
| Ammonia – gross | 224 | 187 |
| Ammonia – net | 62 | 52 |
| UAN | 366 | 317 |
| Feedstock | 1Q-23 | 1Q-22 |
| Petroleum Coke | 77.24 | 56.46 |
| Natural Gas ($/mmBtu) | 5.76 | 5.54 |