Kilgore, Texas-Fertilizer revenues at Martin Midstream Partners LP (MMLP) were up slightly during the second quarter ending June 30, 2007, to $13.4 million from the year-ago $12.1 million. Six-month revenues were $27.6 million, up from $24.1 million. Sulfur revenues were down slightly for the second quarter, at $16.9 million from $17.6 million, as they were for the first half, at $32.1 million from $33.0 million. MMLP-wide, net income was up, at $5.9 million ($.41 per limited partner units) on sales of $162.3 million, versus the year-ago $5.2 million ($.40 per unit) and $133 million, respectively. Six-month net income was $11.7 million ($.82 per unit) on sales of $318.1 million, up from the year-ago $9.5 million ($.72 per unit) and $279.9 million. “We continue to be pleased with the strength of our diversified business model,” said Ruben Martin, president and CEO of Martin Midstream GP LLC, MMLP’s general partner. “As in the previous two quarters, we benefited from strong performances in the majority of our business lines, particularly Natural Gas Services, Marine Transportation and Fertilizer segments. As a result, we have increased our distributions by approximately 8 percent year-to-date while growing our distribution coverage ratios.” He said the company is just beginning to realize the benefits from some $70 million in recent investments, including a sulfuric acid plant.
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Chem profits up nearly 65 percent at El Dorado
Oklahoma City-Operating profits were up nearly 65 percent for the second quarter ending June 30, 2007, at El Dorado Chemical Co., the chemical/nitrogen segment of LSB Industries Inc. Chemical operating profit was $7.9 million on sales of $79.4 million, up from the year-ago $4.8 million and $78.2 million, respectively. The company said the primary reason for this increase relative to sales was the improved El Dorado, Ark., plant’s agricultural product margins, resulting from greater nitrogen demand, which helped overcome heavy rains in some market areas. Margins were also better due to the timing of a 2007 turnaround versus the one for 2006. The Cherokee, Ala., plant saw higher prices and volumes, but results were off due to higher production costs and lower cost absorption due to unplanned maintenance downtime. Overall, ag product sales were up 15.9 percent during the quarter, to $37.0 million from the year-ago $31.9 million. In the meantime, mining product sales were up 8.2 percent, while industrial acids and other products were off 18.9 percent. Chemical six-month profits more than doubled to $15.6 million on sales of $153.1 million, compared to the year-ago $6.6 million and $140.7 million, respectively. LSB-wide, net income was up 111 percent for the second quarter, to $13.2 million on sales of $156.8 million, versus the year-ago $6.3 million and $132.4 million, respectively. Six-month net income was $24.0 million on sales of $304.1 million, up from the year-ago $9.2 million and $244.2 million.
Specialty fertilizer sales up nearly 21 percent at SQM
Santiago-SQM reported that specialty fertilizer sales were up nearly 21 percent for the second quarter ending June 30, 2007, to $172.3 million from the year-ago $142.6 million. SQM noted higher potassium nitrate sales to Latin America, particularly to Brazil. It also saw higher water soluble sales to Europe, Mexico, and Spain, with weather conditions improving in the latter half of this year. Sales were up about 10 percent for the first half, at $275.1 million from $250.2 million. SQM-wide, net income was up 24.4 percent to $51.0 million on sales of $321.6 million, versus the year-ago $41.0 million and $285.6 million, respectively. Six-month net income was $93.9 million on sales of $558.8 million, versus the year-ago $75.3 million and $504.7 million, respectively.
BPC reports increase in shipments, prices
Minsk-JSC Belarusian Potash Co. (JSC) reported a 47 percent increase in shipments to overseas markets for the first half ending June 30, 2007. Major buyers were delaying purchases during the year-ago period. Of the 5 million mt supplied, 3.6 million mt originated in RUE PA Belaruskali (a 53 percent increase), and 1.4 million mt (2.2 million mt inclusive of the volumes supplied to China by railway under BPC supervision) came from JSC Uralkal ?Çô a 41 percent increase. JSC said the export sales returns amounted to US$.9 billion, a 61 percent gain to those of the previous year. BPC noted recent improvements in prices, including a June $50/mt increase accepted by IPL, India’s major importer. Since February 2007, after the relevant contracts had been signed with Sinochem and CNAMPGC, the price went up $5/mt to customers in China, making it the second price increase for this most significant market within less than 7 months; back in July 2006, the price was increased by $25/mt. JSC said for Brazil, the price generally went up $100/mt in January-August 2007, and starting from Oct. 1, the price for potash fertilizers will be increased by another $25/mt to $305-$315/mt for major and minor importers, respectively. JSC also noted that during the first half it broke a psychological price barrier of $300/mt into Southeast Asia. JSC BPC is the sole supplier of potash fertilizers manufactured by RUE PA Belaruskali (Soligorsk, Belarus) and JSC Uralkali (Berezniki, Russia) to overseas markets.
Ploegsma Sulphur sells Duval stock to solvadis
Antwerp-Ploegsma Sulphur Co. LLC (PSC) announced Aug. 7 that it has sold all of the stock of Duval Service Co. NV (DSC) and Duval Sales International NV (DSI) to Duval Holding BVDA, a subsidiary of the solvadis group. DSI has been an integral part of the sulfur trade in Northwest Europe since the early 1970’s, and together with ACS/Vopak, has operated sulfur storage and distribution facilities in the Antwerp area. Mr. Wob Ploegsma, PSC president and a fixture within the European and world-wide sulfur business since 1984, thanks “his employees, customers, suppliers and infrastructure colleagues not only for their business association, but also for their friendship and cooperation over the years.” He said the staff of the Duval companies will remain in place and he is “confident that there will be a smooth transition to the new owner and PSC’s customers and suppliers may expect the excellent business relationships to continue long into the future.” Solvadis is a major distributor and trader of sulfur and other chemicals and succeeds the historical mg group. “For our global sulfur business and as service partner for suppliers (refineries) and consumers in Northwest Europe and in offshore markets, the move into an investment of a bulk terminal is decisive. Solvadis can now offer an extended range of services to traditional and new business partners and welcomes the team of Duval,” said Frank Gladis, man-in-charge of sulphur products for solvadis and new general manager of Duval Holding BVBA.
El Dorado reaches agreement with union
Oklahoma City-LSB Industries Inc. has announced that its subsidiary, El Dorado Chemical Co., has reached agreement with its largest employee bargaining unit on terms for a new, three-year labor contract beginning Aug. 1, 2007. Members of the United Steelworkers of America ratified the negotiated terms on July 28, 2007.
ICL says new loan is record for Israeli company
Tel Aviv-Israel Chemicals Ltd. said Aug. 7 that it has signed an agreement with a group of 17 banks from Europe, the U.S., and Israel, setting the terms under which they will provide ICL with a fully committed loan of $725 million. The loan is for a period of five years and will be repaid in full at the end of the period. The loan, which will bear interest at a rate of 0.45 percent over LIBOR, will replace an existing borrowing facility of $250 million that was secured in 2005 at an interest rate of 0.60 percent over LIBOR for a period of five years. This borrowing facility will now be repaid ahead of its original maturity in view of the improved terms. In addition, the new loan will support ICL’s financing of its acquisition of Supresta, which is expected to close shortly, while also enabling ICL to take advantage of future growth opportunities. ICL says the loan is the largest by a borrower headquartered in Israel. ICL believes that its success in securing this significant loan at such a low margin, together with the prestige of the large number of international banks participating in the transaction, confirm the strong standing that ICL has achieved in the international financial markets.
County wants sale of any amount of AN reported
Rockland, N.Y.-Rockland County officials have decided New York State’s ammonium nitrate restrictions don’t do the job – so they’re planning to adopt their own. That means wholesalers and retailers soon will have to report to local law enforcement purchases or thefts of 100 pounds of fertilizer containing any amount of ammonium nitrate. The new rules are bound to upset local nurseries, hardware stores, and other establishments supplying home gardeners. For one, Barry Eldredge, owner of wholesaler and retailer Environmental Chemicals in Spring Valley, thinks it’s a lot of bother for a “minimum of risk,” pointing out that county officials don’t realize 100 pounds of fertilizer doesn’t contain 100 pounds of ammonium nitrate. He says if the county goes ahead with this “ridiculous law” he will sell only fertilizer that doesn’t contain AN. But the Home Depot store in the area won’t mind one way or the other, because the national hardware chain hasn’t handled ammonium nitrate for some time. Spokeswoman Sheriee Bowman told Green Markets that “vendors we work with have taken many precautions in recent years to produce products that don’t contain this chemical.” County officials have scheduled a Sept. 4 public hearing on the proposal, which also requires reporting of purchases or thefts of a gallon or more of 30 percent hydrogen peroxide, which can be used in explosives.
Minnesota finally gets fertilizer research council
Minneapolis, Minn.-Minnesota agriculture finally has its fertilizer research and education council and $600,000 in general fund money for study grants in place of a controversial 40-cent per ton statewide checkoff fee. The recent legislature approved the council after several years of debate, and left it up to the council members still to be selected to figure out the process for awarding the grants. “It’s the hope these dollars will be used as seed or match money for other funding,” Greg Buzicky, director of the state pesticide and fertilizer management division, told Green Markets. Buzicky said there will be a lot of input from the commodity organizations represented on the council, which is scheduled to hold its first meeting in September. He added that retailers also are expected to play a role, but it isn’t clear at this point how much involvement fertilizer manufacturers will have – they may have some input at a later date. “Projects must include an element of outreach to the ag production community. It was obvious the legislators wanted this fund to have a lot of ownership by producers in Minnesota,” Buzicky noted. He said legislators were unable to agree whether the checkoff should be refundable and have decided to leave the matters in the hands of a task force.
UAP Holding Corp. announces quarterly dividend
Greeley, Colo.-UAP Holding Corp. on July 26 announced that its board of directors declared a quarterly dividend payment, at the rate of $0.225 per share, payable on Sept. 4, 2007, to stockholders of record as of the close of business on Aug. 15, 2007.