OCI Partners LP reported second-quarter net income of $13.5 million on revenues of $79.6 million, down from the year-ago $40.9 million and $113.4 million. OCI announced April 23 that it had completed a debottlenecking and turnaround project; this down time impacted second-quarter production. The company said the results reflect only one full month at or above design capacity.
A $101.8 million asset impairment charge at its Pasadena, Texas, facility, weighed down Rentech Nitrogen Partners LP’s (RNP) second-quarter results. RNP reported a second-quarter loss of $66.2 million ($1.70 per diluted unit) on sales of $109.8 million, compared to a year-ago loss of $8.9 million ($0.23 per unit) and $113.6 million.
Despite the loss, Rentech said it expects the Pasadena facility to post EBITDA of around $10 million for the year. The Pasadena facility is not a part of the RNP sale to CVR Partners LP announced Aug. 10. Pasadena had a second-quarter operating loss of $58.3 million on sales of $37.8 million from a year-ago loss of $2 million on sales of $40 million.
The East Dubuque, Iowa, facility had second-quarter net income of $41.2 million on sales of $72.1 million, up from the year-ago $31.6 million and $73.9 million, respectively.
LSB Industries Inc. has again moved up its cost projections for its major expansion at the El Dorado, Ark., complex. LSB now says cost will be $660-$680 million, up from the July 14 estimate of $560-$575 million. LSB attributes the increase to the work performed by a previous subcontractor. LSB has also pushed back the production date of the 375,000 st/y ammonia plant to second-quarter 2016 from first-quarter 2016. As it relates to the new nitric acid plant and concentrator, the concentrator went into production in June 2015 and the nitric acid plant is expected to be mechanically complete in September 2015, with production beginning mid-fourth quarter 2015.
Northern Plains Nitrogen, Grand Forks, N.D., said Aug. 11, that it cleared its final permitting hurdle for its proposed nitrogen fertilizer facility in Grand Forks. A "Permit to Construct" was issued by the North Dakota Department of Health, Division of Air Quality based on analysis of the facility’s impact on air quality.
The permit was issued following a 30-day public comment period that drew only positive feedback, including an endorsement from the Grand Forks Region Economic Development. The EDC wrote, "NPN and the City of Grand Forks are working closely to ensure this plant technically meets or exceeds expectations for the safety and benefit of the region. The EDC supports projects that will enhance our region’s economy, generate new wealth and create new jobs. NPN’s project meets these goals, not only for our region but our state."
Calvin Coey, NPN project manager, said all necessary permits have now been approved. "We’re pleased to have the support and approval from the City of Grand Forks and now the State of North Dakota. As NPN continues to develop, we will continue to work closely with our neighbors to ensure a cohesive and mutually beneficial relationship," said Coey.
NPN is proposing a 2,400 st/d ammonia plant in an industrial area in the northwest quadrant of Grand Forks. It has been approved for the necessary rezoning and the preliminary plat showing how the 320-acre site will be used. NPN has also received approval from the City of Grand Forks to take an innovative approach to ensure an adequate supply of process and cooling water for its facility. The plant will meet a substantial share of its water needs by re-using "gray" water (wastewater from the adjacent Grand Forks city sewage lagoons).
Despite the permit, the facility’s developers continue to seek financing, which they say would allow construction to start in the next one-to-two years.
