CVR Partners LP reported a third-quarter net loss of $19.8 million ($1.87 per diluted unit) on net sales of $156.5 million, down from the year-ago positive $35 million ($3.28 per unit) and $144.7 million, respectively. EBITDA was off at $10.2 million from the year-ago $63.7 million. The company declared a third-quarter distribution of $1.77 per common unit.
“CVR Partners successfully completed turnarounds at both of its nitrogen fertilizer production facilities in the third quarter of 2022 and addressed a number of issues that had impacted reliability at the facilities during the past 12 months,” said Mark Pytosh, CVR CEO of CVR Partners’ general partner. “As a result, we are now posting record operating rates at both plants and are pleased to announce a quarterly distribution of $1.77 per unit.”
CVR does not expect another turnaround until 2024.
“Industry conditions remain strong, driven by attractive farmer economics in the United States and European imports of nitrogen fertilizer,” he added. “We expect these conditions to continue into the 2023 spring planting season.”
Pytosh told analysts that CVR expects the fall application season to be one of the largest that it has seen in history for nitrogen-based fertilizer based on the demand it has seen so far. He said that a couple of the large US UAN producers and Trinidad have been shipping a lot of that product to Europe, which has tightened the US market.
Nine-month net income was $191.4 million ($18.06 per unit) on sales of $623.4 million, up from the year-ago $16.7 million ($1.56 per unit) and $343.7 million. EBITDA was up at $280.9 million from the year-ago $119.9 million.
| CVR | ||||
| Sales (000 st) | 3Q-22 | 3Q-21 | YTD-22 | YTD-21 |
| Ammonia | 27 | 52 | 118 | 164 |
| UAN | 275 | 322 | 884 | 931 |
| Plant Gate Price $/st | 3Q-22 | 3Q-21 | YTD-22 | YTD-21 |
| Ammonia | 837 | 507 | 1,062 | 416 |
| UAN | 433 | 305 | 496 | 240 |
| Production (000 st) | 3Q-22 | 3Q-21 | YTD-22 | YTD-21 |
| Ammonia – gross | 114 | 205 | 494 | 610 |
| Ammonia – net | 36 | 65 | 137 | 205 |
| UAN | 184 | 314 | 832 | 920 |
| Feedstock | 3Q-22 | 3Q-21 | YTD-22 | YTD-21 |
| Petroleum Coke | 51.54 | 50.35 | 52.68 | 43.23 |
| Natural Gas ($/mmBtu) | 7.19 | 4.29 | 6.65 | 3.48 |