SIOUX CITY, Iowa, Feb. 10 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(TNCLP) (NYSE symbol: TNH) today reported a net loss of $1.5 million on
revenues of $60.7 million for the fourth quarter ended December 31, 1999.
This compares with net income of $0.1 million on revenues of $67.4 million for
the 1998 fourth quarter. The net loss per limited partnership unit was
$.08 for the 1999 fourth quarter compared with net income of $.01 per unit in
the 1998 fourth quarter.
The net loss for the full-year 1999 was $8.1 million, or $.43 per unit, on
revenues of $227.7 million. For 1998, net income was $38.8 million, or
$1.60 per unit, on revenues of $250.8 million.
The decline in 1999 fourth quarter results as compared to the 1998 fourth
quarter was due to an 18%, or $5.5 million, increase in natural gas costs.
This increase was partially offset by higher selling prices for ammonia
(22%) and urea (9%).
The $46.9 million decrease in full-year 1999 net income, when compared
with 1998, was due primarily to a $23.9 million decrease in selling prices and
a 10%, or $11.1 million, increase in natural gas costs. The selling price
decline was caused by the global oversupply of nitrogen fertilizer products.
The oversupply resulted in longer shipping distances which increased the
partnership's freight and storage expenses.
TNCLP also announced that there would be no cash distribution for the
quarter ended December 31, 1999.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com, and by fax at no charge by calling
800-758-5804, code 437906.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Operations
($ in Thousands, Except Per Unit Amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
1999 1998 1999 1998
Product revenues $60,418 $67,071 $226,941 $249,434
Other income 322 333 787 1,326
Total revenues 60,740 67,404 227,728 250,760
Cost of goods sold 56,586 62,036 213,755 189,594
Depreciation and
amortization 3,259 3,170 12,976 12,387
Total cost of sales 59,845 65,206 226,732 201,981
Total gross profit 895 2,198 997 48,779
Operating expenses 1,648 1,543 7,797 9,179
Interest expense - net 726 520 1,298 825
Net income (loss) $(1,480) $135 $(8,098) $38,775
Earnings (loss) per
limited partnership
unit $(0.08) $0.01 $(0.43) $1.60
-- The amount of net income (loss) allocable to the Limited Partners'
interest is based on the Partnership's net income (loss) and the
proportionate share of any cash distributed to the Limited Partners
and the General Partner.
Nitrogen Volumes and Prices
1999 1998
Quarter Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 114 $132 155 $108
Nitrogen Solutions 602 57 696 58
Urea 106 96 114 88
1999 1998
Year Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 479 $117 456 $129
Nitrogen Solutions 2,191 60 2,151 64
Urea 417 93 453 115
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
($ in Thousands)
December 31,
1999 1998
ASSETS
Cash and short-term investments $13 $1,094
Accounts receivable 29,845 6,662
Inventories 39,112 50,456
Other current assets 1,583 2,440
Total current assets 70,553 60,652
Property, plant and equipment, net 157,275 164,689
Other assets 14,595 10,736
Total assets $242,423 $236,077
LIABILITIES
Short-term note and current portion of
long-term debt $40,448 $1,119
Accounts payable and accrued liabilities 26,003 43,041
Total current liabilities 66,451 44,160
Long-term debt -- 7,847
Other liabilities 5,316 5,316
Total liabilities 71,767 57,323
PARTNERS' EQUITY 170,656 178,754
Total liabilities and partners' equity $242,423 $236,077
SOURCE Terra Nitrogen Company, L.P.
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Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Mark Rosenbury of Terra Industries,
712-279-8756
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