SIOUX CITY, Iowa, Jan. 26 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(TNCLP) (NYSE: TNH) today reported net income of $13.7 million on revenues of
$78.4 million for the quarter ended December 31, 1997 compared with net income
of $34.1 million on revenues of $85.2 million for the 1996 fourth quarter.
Earnings per limited partnership unit were $0.71 for the fourth quarter of
1997 compared with $1.32 for the same quarter in 1996. Net income for the
year ended December 31, 1997 was $105.1 million, or $4.17 per limited
partnership unit compared with net income of $177.6 million, or $6.35 per
limited partnership unit for the 1996 year. 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.
Fourth quarter earnings for 1997 were down 60% from the prior-year quarter
due to lower nitrogen prices partially offset by increased sales volumes.
Declining market fundamentals caused by reduced Asian demand and anticipated,
new worldwide nitrogen capacity continued to put pressure on prices during the
quarter as urea, nitrogen solutions (UAN) and ammonia prices were down 40%,
21% and 18%, respectively, from the 1996 fourth quarter. However, good fall
movement of nitrogen fertilizer during 1997 resulted in increased sales
volumes of all partnership products compared with the 1996 quarter when cold
weather reduced fall applications. Urea, UAN and ammonia sales volumes
increased 23%, 22% and 20%, respectively, over the 1996 period.
TNCLP also announced today a cash distribution for the quarter ended
December 31, 1997, of $1.17 per common unit, payable February 27, 1998 to
unitholders of record as of February 6, 1998.
Cash distributions are dependent on TNCLP earnings, working capital
requirements and capital expenditures, among other factors. TNCLP earnings
are traditionally highest in the quarter ending June 30, due to the seasonal
demand for fertilizer. Earnings can also be affected by market prices for
nitrogen products, the cost of natural gas, industry production levels,
business cycles and weather.
TNCLP is one of the largest U.S. manufacturers of nitrogen fertilizer
products.
Note: Terra Nitrogen's news releases are available by fax at no charge by
calling 800-758-5804, code 106067.
(Tables to follow)
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
($ in Thousands, Except Per Unit Amounts)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
Revenues 78,007 85,267 333,959 362,730
Other Income 405 (72) 1,353 408
Total Net Revenues 78,412 85,195 335,312 363,138
Cost of Goods Sold 61,730 48,007 219,486 177,502
Gross Profit 16,682 37,188 115,826 185,636
Operating Expenses 2,753 3,879 12,147 13,035
Operating Income 13,929 33,309 103,679 172,601
Interest Expense (630) (499) (2,201) (1,210)
Interest Income 391 1,260 3,660 6,242
Net Income 13,690 34,070 105,138 177,633
Net Income per Limited
Partnership Unit 0.71 1.32 4.17 6.35
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.
Prior year amounts have been reclassified to conform to current year
presentation.
Nitrogen Volumes and Prices 1997 1996
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
Quarter (000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 100 159 83 195
UAN 723 66 593 84
Urea 132 107 107 177
Year to Date
Ammonia 475 183 394 186
UAN 2,249 79 2,324 92
Urea 496 139 419 179
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
($ in Thousands)
December 31,
1997 1996
Assets
Cash and Cash Equivalents 31,268 46,762
Accounts Receivable 4,007 11,054
Inventory 32,998 29,698
Distribution Reserve Fund -- 18,480
Prepaid Expenses 2,311 2,353
Total Current Assets 70,584 108,347
Property, Plant and Equipment, Net 169,533 172,771
Other Assets 13,711 25,550
Total Assets 253,828 306,668
Liabilities and Partners' Capital
Accounts Payable and Accrued Liabilities 35,957 57,666
Current Portion of Capital Lease Obligations 1,070 1,162
Total Current Liabilities 37,027 58,828
Long-term Debt and Capital Lease Obligations 8,966 3,036
Other Long-Term Liabilities 1,060 1,060
Partners' Capital 206,775 243,744
Total Liabilities and Partners' Capital 253,828 306,668
SOURCE Terra Nitrogen Company, L.P.
 back to top
Related links:
http://www.terraindustries.com
CONTACT:
Paula C. Norton of Terra, 712-277-5438
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
106067
|
