All posts by Steve Seay

Intrepid remains in loss column

Intrepid Potash Inc. reported an adjusted net loss of $14.5 million on sales of $42.2 million for the fourth-quarter ending Dec. 31, 2016, an improvement over the year-ago loss of $20.1 million and sales of $42.8 million.

The company said 2016 was a transitional year as the company streamlined its business to focus on lower-cost solar potash and its specialty Trio product.

Full-year adjusted losses were $61.9 million on sales of $210.9 million, up from 2015’s $22.9 million and $287.2 million, respectively.

The company cited increased sales volumes on lower prices for both the quarter and the year, though it noted that it saw both improved demand and pricing in the fourth quarter.

The company retained Cantor Fitzgerald in December to assist it with its strategic options.

CVR in loss column; sees ’17 improvement

CVR Partners LP today announced a fourth quarter 2016 net loss of $14.5 million ($0.13 per common unit), on net sales of $84.9 million, compared to net income of $18.7 million ($0.26 per unit) on net sales of $66.0 million for the fourth quarter a year ago.

For full year 2016, CVR Partners had a net loss of $26.9 million ($0.26 per unit), on net sales of $356.3 million, compared to net income of $62.0 million ($0.85 per unit), on net sales of $289.2 million for full year 2015.

CVR Partners’ results for the three and 12 months ended Dec. 31, 2016, include the results of the East Dubuque fertilizer facility beginning April 1, 2016.

“We are pleased with the operating performance of our plants during the 2016 fourth quarter,” said Mark Pytosh, CEO. “Both facilities continued to post high on-stream rates, with the East Dubuque ammonia and UAN units operating at nearly 100 percent. While fourth quarter ammonia shipments from our East Dubuque plant were impacted by unfavorable fertilizer application conditions, we anticipate the tonnage that was not applied in the fall will be applied during the spring planting season. Since December, we have seen a significant improvement in nitrogen fertilizer pricing for deliveries during the first half of 2017, which has been driven by the delay of additional supply coming online from new and expanded U.S. production facilities, lower levels of imports into the U.S., and the expectation of a strong spring corn planting season in the U.S.”

Court delays emptying of NH3 tank

A Haifa District Court judge has delayed the emptying of Haifa Chemicals’ ammonia storage facility.  The judge granted the company a temporary injunction on an appeal by the company against a lower court decision issued Feb. 12 that gave Haifa Chemicals 10 days to empty the facility. The order is to remain in effect until Haifa Chemicals presents its case to the district court.  A hearing has been scheduled for Feb. 26.

Martin happy with sulfur/fertilizer results

Martin Midstream Partners LP said its Sulfur Services segment, which also includes fertilizer significantly exceeded expectations in 2016, particularly with a strong performance by its fertilizer business in the second and fourth quarters.

For the year, Sulfur Services operating income was still down 1 percent to $26.8 million on revenues of $141 million from 2015’s $27.1 million and $170.2 million, respectively. Sulfur volumes were off 7 percent to 797,000 lt from 856,000 lt, while fertilizer was down 4 percent to 262,000 lt from 274,000 lt. The company said product demand preferences trended toward higher margin products.

Company-wide, Martin net income was down at $31.6 million on revenues of $827.4 million from 2015’s $38.4 million and $1.04 billion, respectively.

The Andersons upbeat on spring season

The Andersons said Feb. 15 that the company’s Plant Nutrient Group has begun to see signs of improvement in fertilizer orders and price stability in the early weeks of 2017. This follows a couple of quarters of hesitant buying from customers, lower prices, margins and sales.

While the group reported a fourth-quarter pretax loss attributable to The Andersons of $3.8 million on sales of $136.4 million, compared to the year-ago loss of $8 million on sales of $187.9 million, both current and year-ago quarters reflected one-time items, with the recent quarter affected by the $3.3 million closing of a cob production and storage facility in Mount Pulaski, Ill.

Full-year group pretax income was up at $14.2 million on sales of $725.2 million from 2015’s $121,000 and $848.3 million, respectively.

Company-wide, The Andersons were back in the black for the fourth-quarter with income of $11.3 million ($0.36 per diluted share) on sales of $1.11 billion from the year-ago loss of $46.7 million ($1.68 per share) and $1.18 billion, respectively. Full-year income was $14.5 million ($0.41 per share) on sales of $3.92 billion up from 2015’s loss of $11.3 million ($0.46 per share) on $4.2 billion, respectively.

CF posts loss for 4Q, year

CF Industries Holdings Inc. reported a fourth-quarter loss attributable to common stockholders of $320 million ($1.38 per diluted share) on sales of $867 million, down from the year-ago income of $27 million ($0.11 per share) and $1.11 billion, respectively.

The company reported an adjusted net loss of $90 million ($0.39 per share) compared to year-ago income of $168 million ($0.72 per share). During the quarter, CF took a $134 million impairment on its Trinidad nitrogen joint venture, citing long-term challenges to natural gas availability.

The company does expect some $800 million in tax refunds due to a carryback of taxes from the 2016 tax year to prior periods. These primarily relate to accelerated tax depreciation for new capacity projects put into place in 2016.

CF reports that its new Port Neal, Iowa, ammonia and urea plants were successfully commissioned and started up and are producing on-spec product for sale.

While CF reported increased sales volumes during the year, it noted that prices were down, though it noted they rose in the fourth quarter. It expects prices to increase in the first-half, citing in part less product from China. However, it says second-half pricing is uncertain due to the coming online of additional global and North American supplies.

CF reported a full-year net loss of $277 million ($1.19 per share) on sales of $3.68 billion, down from prior year income of $700 million ($2.96 per share) and $4.31 billion, respectively. CF reported adjusted net earnings for the year of $109 million ($0.47 per share) compared to the year-ago $896 million ($3.79 per share).

JPMC, BCIC sign phosphate supply deal (clarification)

Jordan Phosphate Mines Co. (JPMC) on Feb. 11 signed a Memorandum of Understanding with the Government of Bangladesh to supply 270,000 mt of phosphate rock and phosphoric acid worth $280 million. Under the MOU, JPMC said it will supply Bangladesh Chemical Industries Corp. (BCIC) with 150,000 mt of phosphate rock and 120,000 mt of phosphoric acid annually for a period of three years. An earlier alert did not indicate the deal was for annual delivery.

The supplier will also look at the possibility of supplying DAP to Bangladesh.

JPMC’s CEO Shafiq al-Ashqar said the relationship between JPMC and BCIC extends back many years whereby the Jordanian company used to be the main supplier of phosphate to the Bangladesh market.

 

ICL posts lower 4Q profit and loss for 2016

Israel Chemicals Ltd. reported a $32 million net profit ($0.03 per diluted share) on revenues of $1.348 billion compared to the year ago net income of $96 million ($0.08) on $1.427 billion respectively.

ICL said Q4 sales were impacted by lower fertilizer prices which were partially offset by higher potash volumes in China, Brazil and Europe. Potash shipments increased during Q4 following the late signing of contracts in China and India. The company said potash prices witnessed a moderate recovery over the past several months led by Brazil and U.S. markets, although they still remain below the Q4 2015 levels. Potash volumes increased by 15 percent in Q4 compared to the same quarter in 2015, setting a quarterly record. ICL Dead Sea reported record potash production in 2016.

For the year, ICL reported a $122 million loss ($0.10) on revenues of $5.36 billion compared to full year 2015 net income of $509 million ($0.40) on revenues of $5.4 billion. ICL attributed its full year loss to write offs from the termination of its projects in Ethiopia and Britain and the company’s global computerization (ERP) program.