SIOUX CITY, Iowa, Jan. 25 /PRNewswire/ --
Terra Nitrogen Company, L.P. (NYSE: TNH) (TNCLP) today reported net income
of $0.4 million, or $.02 per limited partnership unit, on revenues of
$71.8 million for the quarter ended December 31, 2000. This compares with a
net loss of $1.5 million, or $.08 per unit, on revenues of $60.7 million for
the 1999 fourth quarter. The improvement was due to higher selling prices
partially offset by higher natural gas costs and lower production volumes.
For calendar year 2000, net income was $20.2 million, or $1.07 per unit, on
revenues of $286.4 million compared with a net loss of $8.1 million, or $.43
per unit, on revenues of $227.7 million for 1999.
For the 2000 fourth quarter, ammonia, UAN and urea selling prices were 50,
60 and 54 percent higher, respectively, than 1999 fourth quarter prices.
Fourth quarter 2000 natural gas costs were 71 percent higher than those of the
1999 fourth quarter. Forward pricing contracts reduced fourth quarter natural
gas costs by approximately $12.6 million. The recent large, rapid increase in
natural gas costs prevented TNCLP from forward pricing gas at as high a level
as it did historically. As of December 31, 2000, 10 percent of TNCLP's
expected natural gas requirements for the next 12 months had been priced at
approximately $14.9 million below the published forward market prices at that
date. TNCLP idled its Blytheville, Ark., facility for December and half its
Verdigris, Okla., facility for most of December because natural gas costs
exceeded the expected selling prices of the ammonia, UAN and urea manufactured
with the natural gas. The Verdigris plants restarted on January 23; the
Blytheville facility is expected to restart in early March after some
equipment is replaced.
For calendar year 2000, TNCLP's ammonia, UAN and urea selling prices were
33, 30 and 44 percent higher, respectively, than 1999 selling prices. UAN
sales volumes were 10 percent higher than in 1999 because of market share
increases resulting from other producers permanently closing marginal
facilities. TNCLP's ammonia and urea 2000 sales volumes were lower than in
1999 because of production curtailments at both TNCLP facilities. TNCLP's
2000 natural gas costs were 35 percent higher than they were in 1999. Forward
pricing contracts reduced TNCLP's 2000 natural gas costs by approximately
$31.4 million.
TNCLP also announced a cash distribution for the quarter ended December
31, 2000, of $0.22 per limited partnership unit payable February 28 to holders
of record as of February 7, 2001. The distribution reflects a $13.8 million
reserve of the December 31, 2000, cash balance to fund through March 31, 2001,
anticipated working capital increases and other cash requirements. Cash
distributions are dependent on TNCLP's earnings, working capital requirements
and capital expenditures. TNCLP's quarterly earnings are usually highest in
the quarter ending June 30 due to the seasonal demand for fertilizer. TNCLP's
product selling prices, natural gas costs, production levels and weather also
affect quarterly earnings.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Information contained in this release, other than historical information,
may be considered forward-looking. Forward-looking information reflects
management's current views of future events and financial performance that
involve a number of risks and uncertainties. The factors that could cause
actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally
nitrogen fertilizer selling prices and natural gas costs), changes in product
mix, changes in the seasonality of demand patterns, changes in weather
conditions, changes in governmental regulations and other risks described in
the "Factors That Affect Operating Performance" section of TNCLP's current
annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com , and by fax at no charge by calling
800-758-5804, code 437906.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(unaudited)
Three Months Ended Year Ended
December 31 December 31
2000 1999 2000 1999
(in thousands except per
unit amounts)
Product revenues $71,557 $60,417 $285,649 $226,941
Other income 196 322 744 787
Total revenues 71,753 60,739 286,393 227,728
Cost of goods sold 64,760 56,585 241,172 213,755
Depreciation and
amortization 3,167 3,259 12,706 12,976
Total cost of sales 67,927 59,844 253,878 226,731
Total gross profit 3,826 895 32,515 997
Operating expenses 3,786 1,648 11,493 7,797
Interest expense - net (376) 724 813 1,298
Net income (loss) $ 416 $(1,477) $20,209 $(8,098)
Earnings (loss) per
limited partnership
unit $0.02 $(0.08) $1.07 $(0.43)
Sales Volumes and Prices 2000 1999
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 56 $198 114 $132
UAN 547 91 602 57
Urea 67 148 106 96
2000 1999
Year Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 373 $156 479 $117
Nitrogen Solutions 2,409 78 2,191 60
Urea 282 134 417 93
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(in thousands)
December 31
2000 1999
ASSETS (unaudited)
Cash and short-term investments $17,941 $13
Accounts receivable 24,739 29,845
Inventories 19,381 39,112
Other current assets 3,117 1,583
Total current assets 65,178 70,553
Property, plant and equipment, net 147,597 157,275
Other assets 11,260 14,595
Total assets $224,035 $242,423
LIABILITIES
Short-term note and current portion of
long-term debt $1,000 $40,448
Accounts payable and accrued liabilities 22,757 26,003
Total current liabilities 23,757 66,451
Long-term debt 8,250 --
Other liabilities 5,316 5,316
Total liabilities 37,323 71,767
PARTNERS' EQUITY 186,712 170,656
Total liabilities and partners' equity $224,035 $242,423
SOURCE Terra Nitrogen Company, L.P.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Mark Rosenbury of Terra Nitrogen Company,
L.P., 712-279-8756
|
