Nitrogen producer CVR Partners LP reported third-quarter net income of $731,000 mt on net sales of $130.6 million, up from the year-ago net loss of $19.8 million and $156.5 million, respectively. EBITDA was $32.4 million, up from the year-ago $10.2 million.
While the current quarter reflected a 99% ammonia utilization rate, the year-ago was only 52% due to turnarounds. Ammonia prices were off 56% and UAN 48% compared to the year-ago quarter.
“CVR Partners posted solid operating results for the 2023 third quarter driven by safe, reliable operations with a combined ammonia production rate of 99%,” said Mark Pytosh, CEO of CVR Partners’ general partner. “Harvest is nearly complete and demand for fall ammonia application has been strong.”
“Nitrogen fertilizer prices reset this summer and we have seen rising prices into the fourth quarter,” he said. “With attractive farmer economics, we expect nitrogen fertilizer demand to be strong through the end of 2023 and into the spring of 2024.”
CVR has declared a third-quarter cash distribution of $1.55 per common unit, which will be paid Nov. 20, 2023, to unitholders of record as of Nov. 15, 2023.
Nine-month net income was $162.5 million on sales of $539.9 million, down from the year-ago $191.4 million and $623.4 million, respectively. EBITDA was $243.2 million versus $280.9 million.
| Sales (000 st) | 3Q-23 | 3Q-22 | YTD-23 | YTD-22 |
| Ammonia | 62 | 27 | 183 | 118 |
| UAN | 387 | 275 | 1,075 | 884 |
| Plant Gate Price $/st | 3Q-23 | 3Q-22 | YTD-23 | YTD-22 |
| Ammonia | 365 | 837 | 633 | 1,062 |
| UAN | 223 | 433 | 330 | 496 |
| Production (000 st) | 3Q-23 | 3Q-22 | YTD-23 | YTD-22 |
| Ammonia – gross | 217 | 114 | 660 | 494 |
| Ammonia – net | 68 | 36 | 200 | 137 |
| UAN | 358 | 184 | 1,063 | 832 |
| Feedstock | 3Q-23 | 3Q-22 | YTD-23 | YTD-22 |
| Petroleum Coke | 84.09 | 51.54 | 78.49 | 52.68 |
| Natural Gas ($/mmBtu) | 2.67 | 7.19 | 3.57 | 6.65 |