SIOUX CITY, Iowa, April 25 /PRNewswire Interactive News Release/ --
Terra Nitrogen Company, L.P. (NYSE: TNH) (TNCLP) today reported net income
of $1.6 million, or $.08 per limited partnership unit, on revenues of
$60.0 million for the quarter ended March 31, 2001. This compares with a net
income of $4.3 million, or $.23 per limited partnership unit, on revenues of
$69.9 million for the 2000 first quarter. The net income decrease was due
primarily to higher natural gas costs and lower sales volumes partially offset
by higher selling prices.
TNCLP's natural gas unit purchase costs, after reductions of about
$0.3 million from related forward pricing contracts, were 158 percent higher
than in the 2000 first quarter. These abnormally high natural gas costs
caused TNCLP to idle most of its plants at the beginning of the quarter.
Strong nitrogen fertilizer selling prices and natural gas cost decreases
allowed TNCLP to restart all of its plants during the quarter. As of March
31, 2001, 14 percent of TNCLP's expected natural gas requirements for the next
12 months had been priced at about $0.7 million below the published market
prices at that date.
Overall sales volumes were over 50 percent lower than in the 2000 first
quarter. This shortfall was due primarily to weather delaying the start of
the nitrogen application season. Ammonia, nitrogen solutions and urea prices
were 138, 113 and 71 percent higher, respectively, than first quarter 2000
prices. These price increases were due to lower industry-wide supplies caused
primarily by production curtailments.
TNCLP also announced a cash distribution for the quarter ended March 31,
2001, of $0.22 per limited partnership unit payable May 29 to holders of
record as of May 8, 2001. 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. Quarterly earnings can also be affected
by TNCLP's selling prices for nitrogen products, natural gas costs and
production levels and weather.
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
selling prices of nitrogen and methanol products 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.
Company News On-Call: http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(unaudited)
(in thousands, except per unit amounts) Three Months Ended
March 31,
2001 2000
Product revenues $59,899 $69,716
Other income 90 169
Total revenues 59,989 69,885
Cost of goods sold 53,053 59,379
Depreciation and amortization 3,180 3,201
Total cost of sales 56,233 62,580
Total gross profits 3,756 7,305
Operating expenses 2,098 2,378
Interest expense - net 60 638
Net income $1,598 $4,289
Earnings per limited partnership unit $0.08 $ 0.23
The amount of net income allocable to the Limited Partnership's interest
is based on the Partnership's net income and the proportionate share of
cash distributed to the Limited Partners and the General partner.
Sales Volumes and Prices 2001 2000
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 19 $314 128 $132
Nitrogen Solutions 354 132 601 62
Urea 36 207 128 121
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(unaudited)
March 31,
(in thousands)
ASSETS 2001 2000
Cash and short-term investments $10 $5,859
Account receivable 27,901 31,464
Inventories 59,262 38,010
Other current assets 3,038 1,179
Total current assets 90,211 76,512
Property, plant and equipment, net 145,549 154,125
Other assets 9,115 12,366
Total assets $244,875 $243,003
LIABILITIES
Short-term note and current portion of
long-term debt $2,387 $19,866
Accounts payable and accrued liabilities 44,767 42,875
Total current liabilities 47,154 62,741
Long-term debt 7,481 --
Other liabilities 5,316 5,316
Total liabilities 59,951 68,057
PARTNERS' EQUITY 184,924 174,946
Total liabilities and stockholders' equity $244,875 $243,003
SOURCE Terra Nitrogen Company, L.P.
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Related links:
http://www.terraindustries.com
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
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