LSB Industries Inc. reported a third-quarter net loss of $7.73 million on net sales of $114.3 million, down from the year-ago net income of $2.3 million and $184.3 million, respectively. Adjusted EBITDA was a positive $9.2 million, down from the year-ago $49.9 million.
“Our third-quarter results were disappointing relative to our expectations headed into the period,” said Mark Behrman, President and CEO. “We continue to experience a weaker pricing environment relative to last year, but our results were also impacted by lower production volumes versus our expectations.”
“While we hit a speed bump early in the quarter, our manufacturing operations have been performing well since early September, and we expect that to continue, setting us up for improved results in the fourth quarter,” Behrman said. “Additionally, nitrogen pricing has been increasing over the past two months, a trend that should benefit our profitability in 2024 relative to the second half of 2023.”
“Despite the headwinds encountered so far in 2023, we continue to generate positive cash flow and maintain a strong balance sheet, providing us with significant financial flexibility to allocate capital, including the repurchase of equity and debt, and advancing multiple growth initiatives,” he added. “These include several potential capacity expansion projects that we currently have under evaluation. We expect to determine our next steps on these projects in the first quarter of 2024.”
Behrman said the company continues to make progress with its portfolio of clean energy initiatives as evidenced by the recently reported Houston Ship Channel project with INPEX Corp., Air Liquide Group, and Vopak Moda Houston LLC (GM Oct. 6, p. 1). “We believe these opportunities position us to deliver incremental profitability and increased shareholder value in the future,” he said.
Nine-month net income was $33.3 million on sales of $461.1 million, down from the year-ago $164.5 million and $668.1 million, respectively. Adjusted EBITDA was $107.3 million, down from $309.2 million.
| Product (Gross Sales $)) | 3Q-23 | 3Q-22 | % Change |
| AN & Nitric Acid | 46,026 | 66,161 | (30) |
| UAN | 30,090 | 50,459 | (40) |
| Ammonia | 26,823 | 52,075 | (48) |
| Other | 11,348 | 15,578 | (27) |
| Total | 114,287 | 184,273 | (38) |
| Sales Volumes st | 3Q-23 | 3Q-22 | % Change |
| AN & Nitric Acid | 119,468 | 125,446 | (5) |
| UAN | 118,135 | 115,352 | 2 |
| Ammonia | 88,986 | 55,825 | 59 |
| Total | 326,589 | 296,623 | 10 |
| Avg Selling Price $/st | 3Q-23 | 3Q-22 | % Change |
| AN & Nitric Acid | 327 | 458 | (29) |
| UAN | 217 | 417 | (48) |
| Ammonia | 269 | 906 | (70) |
| Other Factors | 3Q-23 | 3Q-22 | % Change |
| Avg Nat Gas ($/mmBtu) | 3.61 | 7.65 | (53) |
| Tampa NH3 $/mt | 343 | 1,093 | (69) |
| NOLA UAN $/st | 228 | 459 | (50) |