CVR Partners LP, Sugar Land, Texas, reported an improved fourth-quarter, including an 84 percent uptick in ammonia sales volumes. However, prices were lower for both ammonia and UAN. The company still remained in the loss column, though the loss was smaller at $16.9 million ($1.53 per diluted share) on net sales of $90.3 million, compared to the year-ago $24.9 million ($2.20 per share) and $86.1 million, respectively. EBITDA moved up to $18.1 million from the year-ago $10.8 million. The company does not plan a cash distribution for the quarter.
“CVR Partners achieved solid fourth quarter and full-year 2020 results, led by record ammonia production for the year (852,000 st), with the Coffeyville and East Dubuque fertilizer plants posting a combined ammonia utilization rate of 95 percent,” said Mark Pytosh, CEO of CVR Partners’ general partner. “The record-breaking operating performance of our fertilizer facilities coupled with higher product sales volumes helped offset the lower product pricing that we saw throughout 2020.
“Farmer economics have continued to improve during the past several months, with corn and soybean prices increasing by approximately 75 percent since July 2020,” he added. “In addition, weather conditions were favorable for both the harvest and fall ammonia applications, resulting in strong demand. Looking to the spring, we currently are seeing strong customer demand for fertilizer application at prices that are significantly higher than last year.”
The company told analysts that it benefited from lower petroleum coke prices in the fourth quarter due in part to the product it buys from its sister company, Coffeyville Resources, being tied to UAN prices, which were lower.
CVR posted a full-year loss of $98.2 million ($8.77 per share) on sales of $350 million, up from 2019’s loss of $35 million ($3.09 per share) and $404.2 million, respectively. EBITDA was down at $41.4 million from 2019’s $107.5 million.
Full-year results were impacted by a $41 million impairment of assessment of goodwill regarding the Coffeyville, Kan., facility, which was taken in June. The company also had no turnarounds in 2020, but did have a 32-day turnaround at East Dubuque, Ill., in 2019 expensed at $9.8 million. Also in 2020, the company repurchased 623,177 shares of common units at a value of $7 million.
On Feb. 22, 2021, the Board of Directors authorized the company to repurchase an additional $10 million in common units.
| Sales (000 st) | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Ammonia | 114 | 62 | 332 | 241 |
| UAN | 325 | 293 | 1,312 | 1,261 |
| Plant Gate Pricing ($/st) | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Ammonia | 267 | 324 | 284 | 392 |
| UAN | 139 | 176 | 152 | 199 |
| Production (000 st) | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Ammonia – gross | 220 | 180 | 852 | 766 |
| Ammonia – net | 75 | 55 | 303 | 223 |
| UAN | 335 | 286 | 1,303 | 1,255 |
| Feedstock | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Petroleum Coke ($/st) | 30.65 | 39.90 | 35.25 | 37.47 |
| Natural Gas ($/mmBtu) | 2.77 | 2.87 | 2.31 | 2.88 |