Terra reports outage, 4Q, annual results

Deerfield, Ill. — Terra Nitrogen Co. LP on Feb. 17 reported an unscheduled first-quarter outage at one of its Verdigris, Okla., ammonia plants. As a result, approximately one-half of the nitrogen complex will be shut down for about two months for repairs. Terra said this will result in lower ammonia and UAN production, lower sales, and lower profitability during the period, which will reduce available cash for distributions to unitholders. Based on 2015 annual sales (418,000 st ammonia and 1.67 million st UAN), this could result in lost sales of 140,000 st and 278,000 st, respectively. For the fourth quarter ending Dec. 31, 2015, Terra said lower realized ammonia and UAN prices and lower UAN sales volumes were partially offset by higher ammonia volumes. Fourth-quarter net income was $79.2 million on sales of $151.3 million, down from the year-ago $95 million and $168 million, respectively. Net earnings allocable to common units were $46.2 million ($2.49 per unit), down from $56.5 million ($3.05 per unit). Full-year net earnings were $306.8 million on sales of $581 million, down from $370 million and $648.3 million, respectively. Net earnings allocable to common units were $186.2 million ($10.06 per unit), down from $223.3 million ($12.07 per unit).