CVR Losses Down on Higher Volumes, Lower Prices

CVR Partners LP, Sugar Land, Texas, reported a third-quarter net loss of $19 million ($0.17 per diluted share) on net sales of $79.5 million, an improvement over the year-ago loss of $23 million ($0.20 per share) on sales of $88.6 million. However, EBITDA was up, at $15 million from $11.1 million. The company cited strong production rates and improved sales volumes, but lower prices than year-ago levels.

“CVR Partners achieved strong production during the 2020 third quarter, with the Coffeyville and East Dubuque fertilizer plants posting a combined ammonia utilization rate of 98 percent,” said Mark Pytosh, CEO of CVR Partners’ general partner. “The solid performance of our fertilizer facilities, coupled with higher product sales volumes, has helped offset lower product pricing.

“In addition, farm economics have significantly improved since the summer,” he added. “Corn and soybean prices have increased by 30 percent since July, and harvest weather conditions have been favorable. Looking ahead, we anticipate strong customer demand for both the fall 2020 and spring 2021 fertilizer applications.”

CVR reported a nine-month loss of $81.3 million ($0.72 per share) on net sales of $259.6 million, compared to a year-ago loss of $10.1 million ($0.09 per share) and $318.1 million, respectively. EBITDA was $23.3 million, down from $96.7 million.