SIOUX CITY, Iowa, April 29 /PRNewswire-FirstCall/ -- Terra Nitrogen
Company, L.P. (TNCLP) (NYSE: TNH) today reported net income of $12.0 million,
or $.64 per limited partnership unit, on revenues of $108.3 million for the
first quarter ended March 31, 2004. This compares with a net loss of
$7.0 million, or $.37 per unit, on revenues of $70.9 million for the 2003
first quarter. The profitability improvement was due to higher sales volumes
and selling prices, partially offset by higher natural gas costs.
TNCLP also announced a cash distribution for the quarter ended March 31,
2004, of $.25 per limited partnership unit payable May 25, 2004, to holders of
record as of May 10, 2004.
TNCLP's higher sales volumes over the 2003 period reflect strong 2004
customer demand and first quarter 2003 production curtailments due to a
natural gas price spike in late February 2003. TNCLP's natural gas unit costs
for the 2004 first quarter, net of about $3.2 million of cost reductions
realized from forward purchase contracts, were 13 percent higher than those
incurred in the 2003 first quarter. Ammonia, nitrogen solutions and urea
selling prices for the 2004 first quarter were 24, 29 and 19 percent higher,
respectively, than 2003 first quarter selling prices. The higher prices were
due mainly to lower global ammonia and other nitrogen product supplies.
TNCLP's forward purchase contracts at March 31, 2004, fixed prices for
about 23.1 percent of its next 12 months' natural gas requirements at about
$2.3 million below the published forward market prices at that date.
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 Nitrogen Company, L.P. news announcements are also available
on Terra Industries' web site, http://www.terraindustries.com .
Terra Nitrogen Company, L.P.
Condensed Consolidated Statements of Income
(in thousands except per-unit amounts)
(unaudited)
Three Months Ended
March 31
2004 2003
Product revenues $108,213 $70,855
Other income 71 82
Total revenues 108,284 70,937
Cost of goods sold 91,970 72,660
Depreciation and amortization 2,338 3,301
Total cost of sales 94,308 75,961
Total gross profit 13,976 (5,024)
Operating expenses 2,173 2,019
Interest expenses - net (199) (10)
Net income $12,002 $(7,033)
Earnings (loss) per limited partnership unit $0.64 $(0.37)
The amount of net income allocable to the Limited Partners' interest is
based on the Partnership's net income and the proportionate share of cash
distributed to the Limited Partners and the General Partner.
Nitrogen Volumes and Prices
2004 2003
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) (per ton) (000 tons) (per ton)
Ammonia 81 $272 50 $219
Nitrogen Solutions 503 111 438 86
Urea 122 182 102 153
Terra Nitrogen Company, L.P.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31,
2004 2003
ASSETS
Cash and short-term investments $48,480 $13,458
Accounts receivable 21,720 18,779
Inventories 27,946 43,863
Other current assets 5,826 2,743
Total current assets 103,972 78,843
Property, plant and equipment, net 82,706 123,616
Other assets 8,691 9,598
Total assets $195,369 $212,057
LIABILITIES
Short-term debt $58 $56
Accounts payable and accrued liabilities 48,803 45,372
Total current liabilities 48,861 45,428
Long-term debt 8,200 8,200
Other liabilities 1,659 5,435
Total liabilities 58,720 59,063
PARTNERS' EQUITY 136,649 152,994
Total liabilities and partners' equity $195,369 $212,057
SOURCE Terra Nitrogen Company, L.P.
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Related links:
http://www.terranitrogen.com
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury for Terra Nitrogen Company,
L.P., +1-712-279-8756, mrosenbury@terraindustries.com
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