Chemtrade Logistics Income Fund said May 12 that it has entered into an agreement to sell its Montreal East business to Suncor Energy Products Inc. for approximately $120 million. The business, which for a number of years provided services to other refineries in the Montreal area, now provides sulfur removal and compliance services only to Suncor’s Montreal refinery. Chemtrade acquired the operation in 2011 as part of its acquisition of Marsulex, and will realize a gain of approximately $24 million on the sale. Chemtrade will also recognize the remaining amounts receivable (approximately $11 million) pursuant to an agreement with a previous customer of this facility.

Chemtrade will also continue to market sulfur and sodium bisulphite produced by the Montreal plant. Chemtrade will use the net proceeds of the sale to reduce debt. The sale, which is subject to normal closing conditions including compliance with the Competition Act, is expected to close in June.

“It was the right time for us to sell the operation to Suncor, as owner of the sole refinery being served by our Montreal facility,” said Mark Davis, Chemtrade president and CEO. “The sale price represents essentially the same multiple we paid as part of the Marsulex transaction almost three years ago. Additionally, using the net proceeds to reduce debt improves our debt to EBITDA ratio following the recent acquisition of General Chemical, and the on-going marketing agreements will continue to generate revenue for Chemtrade.

“Operationally, the Montreal facility is in excellent shape and Suncor is gaining a skilled team that has provided outstanding service for many years. We thank them for their dedication and commitment to operational excellence.”

Agrium Inc. has alerted customers that it does not expect its Carseland, Alberta, manufacturing facility to become operational again until mid-June following the completion of boiler repairs. As a result, the force majeure that Agrium declared on April 2 (GM April 7, p. 1) will continue until the Carseland plant become fully operational.

Agrium reported on April 2 that it had to shut down ammonia and urea operations at the facility due to the failure of the high pressure boiler feedwater supply pumps. It said at the time that it would not be able to fully perform its product supply obligations for urea, ammonia, and ESN for approximately 8 weeks.

Agrium reported on May 9 that it will continue to supply available ammonia and urea to customers on an allocated basis, but ESN – which is produced solely at Carseland – will not be available until production resumes at the facility.

Pinnacle Agriculture Holdings LLC reported on May 12 that it has successfully acquired the seed, fertilizer, and crop protection assets of United Agricultural Cooperative Inc., headquartered in El Camp, Texas. United Ag will operate as part of Pinnacle’s Sanders brand. Pinnacle said the acquisition will enhance its retail presence in the southeast Texas market.

The Pinnacle (Sanders) strategy is extremely exciting and will create new opportunities for our business to continue providing our customers with the highest level of service possible,” said Jimmy Roppolo, general manager of United Ag. “We are aligning with a team that is committed to innovation and capable of delivering new solutions for our farmers. Also, Sanders’ foundation of trust, loyalty, and integrity is very much like that of United Ag’s. The similarity of our company cultures creates potential for a synergistic union to exceed everyone’s expectations.”

United Ag has been serving agricultural communities along the Gulf Coast of Texas since 1982. The business began as Farmers Cooperative of El Campo (FCEC), and was formed by the consolidation of El Campo Farmers Cooperative and Modern Farmers Cooperative Society. FCEC merged with Danevang Farmers Cooperative in 2012, and the name was changed to United Agricultural Cooperative to better reflect the broad customer base and geographical area served by the co-op.

Jimmy Schulz, former United Ag fertilizer and crop production manager, will take over management of the following five locations: 911 South Wharton Street, El Campo, Texas 77437 (main office/warehouse); 100 South Meadow Lane, El Campo, Texas 77437 (terminal/blend plant); 11338 Texas 71 S, Danevang, Texas 77432; 116 South Wells Street, Edna, Texas 77432; 1898 FM 1432, Victoria, Texas 77905 (Port). The current employees of United Ag will retain their positions under the new ownership.

“It is a huge honor for United Ag to choose Sanders as a partner in servicing the grower community of the Texas Upper Gulf Coast,” said John Williams, Sanders area operations manager. “Like United Ag, Sanders is committed to the producers’ success first and foremost. The new ownership will provide our award-winning OptiGro® precision ag technology system to growers allowing them to maximize their production in the most efficient and economical ways possible. Growers will also have access to the latest in crop input technology. This partnership will provide huge benefits to Upper Gulf Coast growers.”

CF Industries Holdings Inc. reported first quarter net income attributable to common stockholders of $708.5 million ($12.90 per diluted share) on sales of $1.13 billion, up from the year-ago $406.5 million ($6.47 per share) and $1.34 billion. However, the current year results included a $747.1 million gain on the sale of its phosphate business to The Mosaic Co. Absent the sale, first quarter gross margins were $442.8 million, down from the year-ago $675.1 million.

Nitrogen gross margins were down at $434.3 million on sales of $987.5 million from the year-ago $647.6 million and $1.1 billion, respectively.

CF said the first quarter saw outstanding ammonia movement, up 73 percent from year-ago levels, and that the company is well positioned to supply upgraded products in the second quarter.

Phosphate gross margins were $8.5 million on sales of $145.1 million, down from $27.5 million and $238.9 million, respectively.

LSB Industries Inc. reported a return to positive earnings for the first quarter 2014 to $11.3 million ($0.49 per dilute share) on sales of $178.5 million, compared to a year-ago loss of $368,000 ($0.02 per share) on sales of $150.7 million. The income is applicable to common stock.

Leading the way for LSB was its Chemical segment, which saw operating income increase to $28.8 million on sales of $115.2 million, compared to the year-ago loss of $3.8 million on sales of $77.5 million. LSB cited the upgrades and expansions that it is making within the Chemical business.

Yara International ASA and BASF report that they have made good progress with their plan to jointly build a world-scale ammonia plant on the U.S. Gulf Coast. The proposed plant would be located at the existing BASF site in Freeport, Texas, have an annual capacity of 750,000 mt, and be based on a hydrogen-synthesis process. Further details of the planned joint venture are currently under discussion between the parties.

The project is subject to final approval from the respective boards of directors of BASF and Yara.

BASF, which has a strong presence in the U.S., is currently a major user of ammonia for its U.S. downstream activities and intends to further strengthen its backward integration. Yara, with its global ammonia network and market expertise, seeks to strengthen its presence in the U.S.

Agrium Inc. reported net income of $3 million ($0.02 per diluted share) on sales of $3.08 billion for the first quarter ending March 31, 2014, compared to the year-ago $141 million ($0.94 per share) and $3.16 billion, respectively.

“Agrium’s first quarter is traditionally our seasonally lowest earnings quarter and this was exacerbated this year by the record cold winter across North America,” said Chuck Magro, Agrium president and CEO. “However, farmer sentiment is positive this spring and we are now seeing good demand for crop input products and services. Agrium achieved a record $788 million in operating cash flow this quarter, despite the lower net earnings, as we continue to focus on reducing working capital needs.”

Agrium is providing guidance for the second quarter 2014 of $3.85-$4.35 diluted earnings per share from continuing operations. The outage at the Carseland nitrogen plant is expected to impact second quarter earnings due to lost production and higher costs. This impact is $0.35 per share.

LSB Industries Inc. reports that its Pryor, Okla. chemical facility ran its anhydrous ammonia plant for the full month of April 2014 at its targeted production rate of approximately 650 st/d on average and has continued that into May. As previously reported, the Pryor’s anhydrous ammonia plant returned to production during the last several days of February 2014 at a reduced rate and was gradually brought up to its targeted rate during March. Additionally, in early May 2014, the Pryor resumed production of urea and UAN.

“The extensive work we have performed to upgrade and improve the reliability of our Pryor facility is beginning to yield results,” said Jack Golsen, LSB board chairman and CEO. “With the anhydrous ammonia plant now producing at targeted rates, we can significantly increase LSB’s output of urea and UAN, and capitalize on the market opportunities for these products. While our upgrade of Pryor is not yet complete, we are pleased with the progress we have made to date, and anticipate meaningful improvement of the plant’s operating performance in the future.”

The Mosaic Co. has announced that it plans to cut some 500 jobs over the course of the next 12 months. Overall, the company plans to cut costs some $500 million over the next five years.

Mosaic is taking on some 700 new employees with its acquisition of CF Industries Holdings Inc.’s phosphate operations.

Potash Corp. of Saskatchewan Inc. and Moroccan phosphate producer OCP S.A. announced on May 7 that they have reached a definitive agreement under which PotashCorp would purchase OCP’s full range of dry finished phosphate products to help PotashCorp meet its customers’ requirements for the U.S. and Canada.

The two parties have also signed a Memorandum of Understanding that would provide for the sale by PotashCorp to OCP of ammonia to meet OCP’s growing ammonia requirements for its new fertilizer capacity in the Jorf Lasfar Hub.

OCP, the largest global producer of phosphate rock and phosphoric acid, currently has 3 million mt/y of DAP/MAP capacity at Jorf Lasfar, but has announced two phases of expansion at the complex, the first of which is slated to be operational by July 2015 and would add another 4 million mt/y of DAP/MAP capacity. The second phase is planned for operation starting in 2020, and would bring annual DAP/MAP production capacity at Jorf Lasfar to more than 13 million mt.

PotashCorp, through a wholly owned U.S. subsidiary, currently purchases phosphate rock from OCP to supply its Geismar, La., production facility.