SIOUX CITY, Iowa, July 27 /PRNewswire/ --
Terra Nitrogen Company, L.P. (NYSE: TNH) (TNCLP) today reported net income
of $11.9 million, or $.63 per limited partnership unit, on revenues of
$85.5 million for the second quarter ended June 30, 2000. This compares with
net income of $2.4 million, or $.13 per unit, on revenues of $68.6 million for
the 1999 second quarter. Net income for the 2000 first half was
$16.2 million, or $.86 per unit, on revenues of $155.4 million. Net income
for the 1999 first half was $0.4 million, or $.02 per unit, on revenues of
$122.6 million.
TNCLP's profitability increase was due to higher selling prices, reduced
distribution expenses and higher UAN sales volumes partially offset by natural
gas cost increases. Second quarter 2000 ammonia, UAN and urea selling prices
were 22%, 20% and 43% higher, respectively, than 1999 second quarter prices.
UAN sales volumes were 741,000 tons, or 19% higher than 1999 second quarter
sales volumes. This increase is attributable to more attractive UAN vs.
ammonia pricing and lower industry-wide UAN supplies caused in part by
production curtailments. Second quarter 2000 natural gas costs were 39%
higher than the 1999 second quarter costs. The late May 2000 temporary
shutdown of TNCLP's Blytheville manufacturing facility did not have a
significant effect on second quarter operating results. The Blytheville
facility is scheduled to restart on or about August 15, 2000.
First half 2000 ammonia, UAN and urea selling prices were 23%, 11% and 35%
higher, respectively, than 1999 first half prices. UAN sales volumes were
1,343,000 tons, or 23% higher than 1999 first half sales volumes. Natural gas
costs were 23% higher than 1999 first half costs.
TNCLP also announced that no cash distribution was declared for the 2000
second quarter as the $10.5 million June 30, 2000 cash balance has been
reserved to fund inventory increases in the 2000 second half. TNCLP has
declared no cash distributions since the 1998 third quarter. 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.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except
per unit amounts) 2000 1999 2000 1999
Product revenues $85,379 $68,595 $155,095 $122,379
Other income 131 (31) 300 258
Total revenues 85,510 68,564 155,395 122,637
Cost of goods sold 66,696 60,797 126,072 111,327
Depreciation and
amortization 3,181 3,242 6,382 6,475
Total cost of sales 69,877 64,039 132,454 117,802
Total gross profit 15,633 4,525 22,941 4,835
Operating expenses 3,492 1,889 5,870 4,106
Interest expense - net 276 215 915 346
Net income $11,865 $2,421 $16,156 $383
Earnings per limited
partnership unit $0.63 $0.13 $0.86 $0.02
Sales Volumes and Prices 2000 1999
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 133 152 154 125
UAN 741 77 622 64
Urea 57 140 98 98
2000 1999
Sales Average Sales Average
First Half Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 261 142 285 115
UAN 1,343 70 1,092 63
Urea 185 127 225 94
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(in thousands unaudited)
June 30,
2000 1999
ASSETS
Cash and short-term investments $10,501 $13
Accounts receivable 29,955 19,322
Inventories 21,338 41,815
Other current assets 2,055 2,219
Total current assets 63,849 63,369
Property, plant and equipment, net 151,308 162,242
Other assets 11,560 7,814
Total assets $226,717 $223,425
LIABILITIES
Short-term note and current portion of
long-term debt $1,460 $14,813
Accounts payable and accrued liabilities 24,380 33,697
Total current liabilities 25,840 48,510
Long-term debt 8,750 461
Other liabilities 5,316 5,316
Total liabilities 39,906 54,287
PARTNERS' EQUITY 186,811 179,138
Total liabilities and partners' equity $226,717 $233,425
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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