All posts by traceybg@gmail.com

OCI 3Q net income off 41.3 percent

Cairo-Orascom Construction Industries (OCI) reported a 41.3 percent drop in net income for the third quarter ending Sept. 30, 2009, to $120.7 million on sales from continuing operations of $933.4 million, versus the year-ago $205.5 million and $991.9 million, respectively. Nine-month net income was off 64 percent, to $328.7 million on sales of $2.85 billion, versus the year-ago $913 million and $2.7 billion, respectively. Overall, OCI’s fertilizer business contributed some 36.6 percent of the company’s nine-month 2009 EBITDA, which was a consolidated $566.6 million compared to the year-ago $733.9 million. Third-quarter EBITDA was $203.5 million, down from the year-ago $307.4 million. Urea volumes from the company’s Egyptian Fertilizer Co. (EFC) unit were 352,021 mt, at an average price of $250/mt for the third quarter and 1 million mt at $260/mt for the nine months. Ammonium sulfate volumes for the quarter and nine months were both 16,600 mt at $115/mt. Ammonia volumes from OCI’s EBIC unit were 134,453 mt at $218/mt for the quarter, and 204,554 mt at $212/mt for the nine months. Nine-month urea volumes from the EFT third-party trading unit were 139,049 mt for the nine months.

SEC gives LSB green light on possible stock sale

Oklahoma City-LSB Industries Inc. said last week that its shelf registration statement on Form S-3 of $200 million of securities has been declared effective by the Securities and Exchange Commission. The registration gives LSB the ability to offer and sell up to $200 million of its securities, consisting of common stock, preferred stock, debt (senior and subordinated), warrants, units, or a combination thereof. “We do not have immediate plans to sell our securities under the registration statement,” said LSB Chairman and CEO Jack Golsen. “The board of directors believed that having a shelf registration in place was prudent given the current market environment, as it provides us greater financial flexibility in the event we identify strategic opportunities that may require additional capital.”

Mid-month storm causes plant outage at Hopewell

Hopewell, Va.-Honeywell’s Hopewell, Va., production facility was slowly returning to normal operations last week after sustaining an outage caused by a Mid-Atlantic storm system at mid-month. After the remnants of Hurricane Ida hammered the East Coast on Nov. 10-13, Honeywell alerted customers on Nov. 16 that it was not taking new rail orders for ammonium sulfate due to “an unexpected outage” caused by the storm. A notice to customers on Nov. 23 said water line repairs required tearing up much of the track in the facility’s rail loading area, resulting in very limited rail loading last week as the company made on-site repairs. The Nov. 23 notice said Honeywell most likely would not be taking new granular ammonium sulfate rail orders for another two weeks, although mid-grade ammonium sulfate cars were reportedly being loaded and shipped last week. Honeywell’s earlier notice said orders for granular and mid-grade ammonium sulfate at Honeywell warehouses would be taken as long as current inventory allows. “We will attempt to increase rail loading in December to catch up on some of the lost shipments in November,” the Nov. 23 notice said.

Legend strikes deal with Chinese company

Melbourne-Legend International Holdings Inc. has formed a strategic alliance with China’s Wengfu Group Co. Ltd. (Wengfu) for the development of its phosphate mine, a beneficiation plant, and a phosphoric acid plant in the Mount Isa region, Queensland, Australia. Wengfu, one of the largest phosphate fertilizer producers in China, has developed two phosphate mines in Guizhou Province, and beneficiation, fertilizer, and chemical plants in Guizhou, Gansu, and Sichuan Provinces, China. Wengfu produces over 2.5 million tons of finished fertilizer products, and also has a large research and development arm that has enabled it to produce many specialty phosphate chemical products. The company has a large global network in the phosphate fertilizer industry and exports fertilizer to over twenty countries worldwide, including Australia and New Zealand. Wengfu is currently contracted to provide engineering, procurement, and construction services for the large phosphate Ma’aden Beneficiation Project in Saudi Arabia, which is due for completion in 2010. Legend and Wengfu have agreed to work together initially on the feasibility study for the mining and beneficiation of phosphate rock at Legend’s Georgina Basin Phosphate Project in Queensland, Australia. Pending a positive feasibility study, Wengfu and Legend will also investigate the production of specialty phosphate products derived from the manufacture of phosphoric acid. After completion of a positive feasibility study for the mining and beneficiation, Wengfu will become an equity partner with Legend to strengthen the alliance and share in the benefits of the successful development of all stages of the project, including the production of specialty phosphate chemical products. Legend says the strategic alliance with Wengfu will further advance the phosphate project beyond its initial phase of mining and shipping unbeneficiated phosphate rock pursuant to its existing alliance with IFFCO.

Five AN cars involved in Houston derailment

Houston-Twenty-nine of 116 cars, including five carrying ammonium nitrate, derailed shortly before noon Monday, Nov. 23, on a westbound Union Pacific (UP) freight train, tying up rail and highway traffic and tearing up large sections of track. UP officials said by the next day traffic was restored on one of the lines, but reports indicated that cleaning up the site in southwest Houston could take more than a week. There were no injuries, but highway traffic was diverted for hours in both northbound and southbound lanes. Some parts remained closed for more than a day. UP spokeswoman Raquel Espinoza told Green Markets that at least five cars on the train were carrying ammonium nitrate and one of the five remained on the tracks. She said cleanup crews had repaired 1,000 feet of torn-up track and had restored traffic on one of the lines, and that the other was expected to be open sometime on Tuesday. Late last Tuesday, 22 cars had been removed from the area and seven remained at the site. “We plan to off-load seven railcars before we move them, a process that can take up to 14 hours. We can’t move the ammonium nitrate cars until we properly remove the product,” said Espinoza. “We are working with local authorities and taking all the precautionary measures to assure that this is safely carried out.” Several of the upended cars carried petroleum coke, and some of the contents spilled onto the westbound lanes of the adjoining highway. Tanker cars also were involved, but Espinoza didn’t know about the contents. Two nearby elementary schools were put on “shelter-in-place” notice. Espinoza said the cause of the derailment is still under investigation.

Rotem BKG becomes ICL Premium Fertilizers

St. Louis-Rotem BKG LLC will become ICL Premium Fertilizers NA, according to Ariana Cohen, president. The change coincides with the reorganization of ICL North America. ICL Premium Fertilizers NA will continue to be the main supplier of mono potassium phosphate (MKP) under the brand name PeaK® for the horticulture, tech, and food markets, and technical grade mono ammonium phosphate under the brand name NovaMAP®. Additional products sold in the U.S. by ICL Premium include other potassium, phosphate-based fertilizers (PeKacid, HiPeaK, and MgPhos) and magnesium nitrate. ICL Premium is a member of Israel Chemicals Ltd. (ICL), a global group active in fertilizers, bromine and bromine compounds, specialty and performance chemicals, and metallurgy.

ARS studies climate friendly fertilizers

Ft. Collins, Colo.-USDA Agricultural Research Service scientists have found that using alternative types of fertilizers can cut back on greenhouse gas emissions, at least in one part of the country. They are currently examining whether these types offer similar benefits nationwide. Their concerns are that nitrogen fertilizers necessary for ensuring sufficient crop yields release nitrous oxide, a major greenhouse gas, into the atmosphere. Fertilizer use is one reason an estimated 78 percent of the nation’s nitrous oxide emissions comes from agriculture, according to Ardell Halvorson, a soil scientist at the ARS Soil Plant Nutrient Research Laboratory, located here. Halvorson compared nitrous oxide emissions from corn fields treated with either a conventional nitrogen fertilizer (urea) or either of two specially-formulated urea fertilizers – one with polymer-coated controlled release, and the other with inhibitors to stabilize the urea to keep more of it in the soil as ammonium for a longer period. In a two-year experiment at Fort Collins, Halvorson collected the emissions using static-vented chambers, similar to small “pillbox” structures placed over the soil. He chose a no-till cropping system known to reduce carbon dioxide emissions. He found that the controlled-release fertilizer cut nitrous oxide emissions by a third, and that the stabilized fertilizer cut them almost in half. Halvorson’s results are so far limited to the irrigated fields and cool, semi-arid conditions in and around Fort Collins. But nitrous oxide releases are the result of a complex interplay of conditions that vary from one area to the next, such as soil water content, soil temperatures, soil types, microbial activity, climactic conditions, and rainfall patterns. So Halvorson is expanding the study, with support from the fertilizer industry and cooperation of other ARS locations, to see how the fertilizers respond at seven sites around the United States.

Missing fertilizer truck driver found safe

Alberta Lea, Minn.-The Freeborn County sheriff says the case of a driver who drove his fertilizer truck into a swamp and then left the scene and was missing for a day or more is under investigation. “I know that this missing man was found early Friday evening (Nov. 20) and is no longer missing,” Sheriff Mark Harig told Green Markets. Harig declined to elaborate “because there is an active investigation into his disappearance. Thankfully he has been found after spending the night sleeping in a cornfield and had only minor injuries and is now safe.” The driver was identified as Seth Strusz, 34, Hartland, Minn. Officials at High Yield in Hartland declined to talk about the situation, but Green Markets did learn that the fertilizer aboard the truck had been recovered. The area was searched by more than 60 volunteers. A canine unit and helicopter equipped with infra red were used before the missing driver was located later in the evening.

Fertilizer odor complaints investigated in Iowa

Ames, Iowa-The producers are looking into complaints of “sickly odors” from a water-based fertilizer made from a soybean refining byproduct. “We’ve been using it for land application for eight or nine years in Iowa and it’s the first time we’ve had this issue,” reported Sam Scheidler, executive director of Feed Energy of Des Moines, the company that supplies the fertilizer. “We’ve suspended the use while we are looking into what created this situation.” Over the last two weeks residents in Ames and other areas have reported an intermittent rotting meat or dead fish odor. “It just reeks,” said Mike Holub, who owns a greenhouse business two miles east of the Heart of Iowa Cooperative branch near Nevada where the liquid is stored in a tank. “We’re getting headaches around here from it.” Story County Interim Health Director Margaret Jaynes is looking into more than 15 complaints from residents living in three different areas. Heart of Iowa reported more than a dozen complaints. Boyd Brodie, operations manager for Heart of Iowa, told the local press this is the second year the fertilizer has been applied to fields in Story County. He believes the odor may be the result of treating the fields earlier in November during warmer weather. “We’ve been taken by surprise,” Brodie said. “Everybody’s trying to figure out what happened to cause these odor issues.” Scheidler told Green Markets the fertilizer, which has all the primary nutrients plus micronutrients, is usually applied on row crops after harvest. “Farmers who have used it like it,” he added.