Deerfield, Ill.—Terra Nitrogen Co. LP reported net earnings of $124.2 million ($3.78 per common unit) on sales of $196.9 million for the first quarter ending March 31, 2012, compared to the year-ago net earnings of $120.9 million ($3.60 per unit) on sales of $196 million. Results included an unrealized mark-to-market loss on natural gas derivatives of $11.3 million, compared to a year-ago gain of $1.2 million. Nitrogen sales volumes were off primarily due to the implementation of a product offtake agreement with majority owner CF Industries Holdings Inc., which resulted in a one-time acceleration in sales in the first quarter of 2011, and modestly lower production during first quarter 2012. First-quarter UAN volumes were 506,000 st with an average price of $291/st, compared to the year-ago 584,000 st and $258/st, respectively. First-quarter ammonia volumes were 95,000 st with an average price of $517/st, versus the year-ago 108,000 st and $414/st FOB, respectively. The average gas cost was down, at $3.37/mmBtu versus the year-ago $4.30/unit.
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