Oklahoma City, Okla. — LSB Industries Inc.’s Chemical unit reported first-quarter operating income of $16.7 million on sales of $126.8 million, compared to the year-ago $28.8 million and $115.2 million, respectively. “Chemical sales grew more than 10 percent compared to the 2014 first quarter, driven by greater on-stream rates at our facilities, particularly at our Pryor facility, where the reliability initiatives we’ve been implementing over the past 18 months are increasingly translating into more consistent production levels,” said Barry Golsen, LSB president and CEO. He said the unit benefited from higher selling prices and lower natural gas costs. However, the company did have a $4 million operating loss at its El Dorado, Ark., facility which still buys ammonia as its primary feedstock. Profits are expected to return to the plant once a new ammonia plant is up and running in first-quarter 2016. On the Ag side of the Chemical business, volumes sold were up 13 percent, to 214,925 st from the year-ago 190,533 st. UAN sales were up 40 percent to 116,922 st on lower prices averaging $251/st, compared to the year-ago 83,516 st and $261/st, respectively. Ammonia sales more than doubled, to 30,766 st at an average price of $513/st from the year-ago 15,057 st and $419/st, respectively. Ammonium nitrate sales were off 26 percent to 63,831 st from 86,403 st, though prices were up slightly to $315/st from $308/st. LSB is projecting second-quarter ag-related sales of 105,000-115,000 st for UAN, 60,000-70,000 st for ammonium nitrate, and 20,000-25,000 st for ammonia. Company-wide, LSB reported first-quarter net income of $6.65 million ($0.28 per diluted share) on net sales of $193.8 million, down from the year-ago $11.6 million ($0.49 per share) and $178.5 million.
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