CVR PARTNERS, LP Releases Q3 2023 10-Q Report Highlighting Improved Operational and Financial Performance
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CVR PARTNERS, LP, a leading producer of nitrogen fertilizer products, has released its Form 10-Q report for the third quarter of 2023. The report highlights significant improvements in both financial and operational performance, driven by increased production volumes and enhanced operational reliability.
Financial Highlights
- Net Sales: $130.6 million, a decrease of $25.9 million compared to the same period in 2022, primarily due to unfavorable UAN and ammonia sales prices.
- Operating Income: $8.1 million, an improvement of $20.0 million compared to the loss in the same period in 2022, driven by increased production and sales volumes.
- Net Income: $0.7 million, an improvement of $20.5 million compared to the net loss in the same period in 2022, reflecting better operational reliability and reduced downtime.
- Basic and Diluted Earnings (Loss) Per Common Unit: $0.07, compared to a loss of $1.87 per unit in the same period in 2022, indicating a significant turnaround in profitability.
Business Highlights
- Revenue Segments: The Partnership's revenue is primarily derived from the sale of nitrogen fertilizer products, including ammonia and urea ammonium nitrate (UAN). For the three months ended September 30, 2023, UAN sales contributed $86.3 million, while ammonia sales contributed $22.5 million. For the nine months ended September 30, 2023, UAN sales were $354.4 million, and ammonia sales were $116.0 million.
- Sales Units: For the three months ended September 30, 2023, the Partnership sold 358 thousand tons of UAN and 68 thousand tons of ammonia. For the nine months ended September 30, 2023, sales volumes were 1,063 thousand tons of UAN and 200 thousand tons of ammonia.
- Production Volumes: The Partnership produced 217 thousand gross tons of ammonia in the three months ended September 30, 2023, and 660 thousand gross tons for the nine months ended September 30, 2023. This represents an increase in production compared to the same periods in 2022.
- Operational Performance: The Partnership achieved a consolidated ammonia utilization rate of 99% for the three months ended September 30, 2023, and 101% for the nine months ended September 30, 2023. This improvement is attributed to increased operational reliability following planned turnarounds in 2022.
- Market Capture: The Partnership continues to focus on improving realized pricing at the gate and reducing variable costs to maximize market opportunities. Despite lower natural gas prices impacting sales prices, operational reliability has improved sales volumes.
- Future Outlook: The Partnership anticipates continued strong demand for nitrogen fertilizers due to favorable agricultural economics and expects to maintain high utilization rates at its facilities. The next planned turnarounds are scheduled for 2025 at the Coffeyville Facility and in 2026 at the East Dubuque Facility.