LSB Industries Inc. reported full-year net income of $230.3 million on net sales of $901.7 million, up from 2021’s $43.5 million and $556.2 million, respectively. Adjusted EBITDA was $415 million, up from $191 million.
Fourth-quarter net income was $65.9 million on net sales of $233.7 million, up from the year-ago $42.1 million and $190.2 million, respectively. Adjusted EBITDA was $105 million, up from $90 million.
“Our fourth quarter capped off the most profitable year in our company’s history,” said Mark Behrman, LSB’s President and CEO. “Our strategic commercial initiatives, optimizing our sales mix to maximize margins, combined with favorable positioning across our end markets, enabled us to capitalize on the robust pricing environment, as evidenced by our selling prices in the fourth quarter. As a result, we delivered strong top and bottom-line growth for the quarter and full year. Additionally, we generated significant cash flow and further enhanced our liquidity and net leverage position, providing greater financial flexibility to pursue our multi-year growth plan.
“LSB’s transformation continued in 2022. In addition to $175 million in accretive share repurchases, we executed two secondary offerings for our largest shareholder, which allowed us to broaden our shareholder base, create more liquidity in our common stock, and increase our profile with the investment community. We continued to invest significantly in our manufacturing assets, completing major turnarounds at both our El Dorado (27 days) and Pryor (38 days) facilities and have already seen the benefits from those investments,” he continued. No major turnarounds are expected for 2023.
“Lastly, with respect to our sustainability efforts, we launched our clean energy strategy, announcing a low carbon ‘blue’ ammonia project at our El Dorado facility and a zero carbon ‘green’ ammonia project at our Pryor facility,” Behrman concluded.
LSB expects to produce 830,000-850,000 st of ammonia in 2023, up from 2022’s 732,000 st.
For full-year 2023, LSB’s sales outlook for ammonium nitrate and nitric acid is 590,000-610,000 st, compared to 2022’s 589,000 st; UAN is put at 530,000-550,000 st, up from 449,000 st; and ammonia is 330,000-350,000 st, up from 276,000 st. The UAN increases are due in part to LSB’s decision to take over the marketing of all of its UAN from its former marketing partner CVR Partners LP, effective Dec. 31, 2022 (GM Oct. 7, 2022).
| Product (Gross Sales 000 $) | 4Q-22 | 4Q-21 | % Change |
| AN & Nitric Acid | 81,576 | 74,725 | 9 |
| UAN | 55,449 | 50,269 | 10 |
| Ammonia | 83,144 | 53,146 | 56 |
| Other | 13,485 | 12,088 | 12 |
| Total | 233,654 | 190,228 | 23 |
| Sales Volumes st | 4Q-22 | 4Q-21 | % Change |
| AN & Nitric Acid | 157,104 | 181,467 | (13) |
| UAN | 102,912 | 126,476 | (19) |
| Ammonia | 84,100 | 74,801 | 12 |
| Total | 344,116 | 382,744 | (10) |
| Avg Selling Price $/st | 4Q-22 | 4Q-21 | % Change |
| AN & Nitric Acid | 464 | 354 | 31 |
| UAN | 522 | 382 | 37 |
| Ammonia | 978 | 701 | 40 |
| Other Factors | 4Q-22 | 4Q-21 | % Change |
| Avg Nat Gas ($/mmBtu) | 6.95 | 4.42 | 57 |
| Tampa NH3 $/mt | 1,116 | 851 | 31 |
| NOLA UAN | 533 | 530 | 1 |