CVR Energy Inc. managed to report increased earnings as well as operating profits for both of its divisions ?Çô nitrogen and refining ?Çô during the first quarter ending March 31, 2009, despite the global economic downturn.
CVR reported net income of $30.7 million ($.36 per diluted share) on sales of $609.4 million, versus the year-ago $22.2 million ($.26 per share) and $1.22 billion, respectively. Operating income was up, at $91 million from $87.4 million a year ago.
“Consistent operations at both our refinery and nitrogen fertilizer plant clearly supported CVR Energy’s financial performance during the first quarter,” said CEO Jack Lipinski. “The nitrogen fertilizer plant operated at near full capacity, and total throughput of crude oil and all other feedstocks and blendstocks at our refinery averaged 120,667 barrels per day.
“We continue to manage our business conservatively,” added Lipinski. “Besides our efforts to ensure operational excellence, we are focused on controlling costs and capital expenditures as one of the best ways to create value for our shareholders.” CVR confirmed last quarter that it put its UAN expansion plans on hold.
First-quarter nitrogen operating income was $29.3 million on sales of $67.8 million, versus the year-ago $26 million and $62.6 million, respectively. Improved nitrogen results were attributed to increased product volume sales and higher UAN prices. Average plant sale prices for ammonia and UAN were $373/st and $316/st, respectively, compared to the year-ago $494/st and $262/st. First-quarter ammonia and UAN production stood at 108,000 st and 169,700 st, respectively, versus the year-ago 83,700 st and 150,100 st. Ammonia and UAN tons sold were 48,000 st and 143,000 st, respectively, versus the year-ago 24,100 st and 158,000 st.
CVR used 125,300 st of feedstock petroleum coke during the quarter at an average price of $35/st, versus the year-ago 118,100 st and $30/st. By comparison, it noted that NYMEX natural gas was $4.47/mmBtu during the quarter, versus the year-ago $8.74/mmBtu.
Operationally, CVR said fertilizer had an excellent quarter, maintaining a 100 percent on-stream time for gasification and ammonia synthesis units. The UAN plant was at 96 percent capacity following a successful turnaround in the fourth quarter 2008. Current UAN inventories are put at 35,000 tons, about 10,000 tons above historical levels. However, the company noted that 10,000 tons extra is not a big issue, as the company expects the acres and nitrogen demand to be there this spring.
First-quarter refinery operating income was $64.7 million on sales of $545.3 million, versus the year-ago $63.6 million and $1.17 billion.