SIOUX CITY, Iowa, Oct. 26 /PRNewswire/ --
Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net income
of $3.6 million, or $.19 per limited partnership unit, on revenues of
$59.2 million for the third quarter ended September 30, 2000. This compares
with a net loss of $7.0 million, or $.37 per unit, on revenues of
$44.4 million for the 1999 third quarter. The improvement was due to higher
selling prices partially offset by higher natural gas costs. For the nine
months ended September 30, 2000, net income was $19.8 million, or $1.05 per
unit, on revenues of $214.6 million compared with a net loss of $6.6 million,
or $.35 per unit, on revenues of $167.0 million during the first nine months
of 1999.
TNCLP's third quarter 2000 ammonia, UAN and urea selling prices were 83%,
48% and 65% higher, respectively, than 1999 third quarter prices. Third
quarter 2000 natural gas costs were 56% higher than 1999 third quarter costs.
Forward pricing contracts reduced third quarter natural gas costs by
approximately $9.8 million. The recent large, rapid increase in natural gas
costs has not permitted TNCLP to continue historic levels of natural gas
forward pricing. As of September 30, 2000, 20% of TNCLP's expected natural
gas requirements for the next twelve months had been priced at approximately
$16.5 million below the published forward prices at that date.
For the first nine months of 2000, TNCLP's ammonia, UAN and urea selling
prices were 33%, 23% and 40% higher, respectively, than selling prices in the
comparable 1999 period. UAN sales volumes in 2000 were 17% higher than in
1999 because of industry-wide production curtailments. TNCLP's ammonia and
urea 2000 sales volumes were lower than in 1999 primarily because of the
Blytheville, Ark. plant shutdown. The Blytheville facility resumed production
in late August. TNCLP's natural gas costs for 2000 were 27% higher than in
the 1999 comparable period. Forward pricing contracts reduced TNCLP's 2000
natural gas costs by approximately $18.8 million.
TNCLP also announced a cash distribution for the quarter ended September
30, 2000 of $.22 per limited partnership unit payable November 27 to holders
of record as of November 6, 2000. The distribution reflects a $15.5 million
reserve of the September 30, 2000 cash balance to fund through March 31, 2001
anticipated working capital increases and other cash requirements. 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.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Information contained in this news 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 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 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.
(Tables follow)
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(unaudited)
Three Months Ended Nine Months Ended
(in thousands, except September 30 September 30
per unit amounts) 2000 1999 2000 1999
Product revenues $58,997 $44,145 $214,092 $166,524
Other income 248 207 548 465
Total revenues 59,245 44,352 214,640 166,989
Cost of goods sold 51,124 45,843 177,196 157,170
Depreciation and
amortization 3,157 3,242 9,539 9,717
Total cost of sales 54,281 49,085 186,735 166,887
Total gross profit 4,964 (4,733) 27,905 102
Operating expenses 1,053 2,043 6,923 6,149
Interest expense -- net 274 228 1,189 574
Net income (loss) $3,637 $(7,004) $19,793 $(6,621)
Earnings (loss) per limited
partnership unit $0.19 $(0.37) $1.05 $(0.35)
Sales Volumes and Prices 2000 1999
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 56 181 80 99
UAN 520 86 497 58
Urea 30 145 86 88
2000 1999
Sales Average Sales Average
Nine Months Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 317 149 365 112
UAN 1,863 75 1,589 61
Urea 215 130 311 93
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(in thousands unaudited)
September 30
2000 1999
ASSETS
Cash and short-term investments $19,627 $14
Accounts receivable 33,963 26,840
Inventories 23,617 37,744
Other current assets 1,483 615
Total current assets 78,690 65,213
Property, plant and equipment, net 148,701 159,595
Other assets 13,979 17,545
Total assets $241,370 $242,353
LIABILITIES
Short-term note and current portion
of long-term debt $1,423 $33,268
Accounts payable and accrued liabilities 35,684 31,248
Total current liabilities 37,107 64,516
Long-term debt 8,500 386
Other liabilities 5,316 5,316
Total liabilities 50,923 70,218
PARTNERS' EQUITY 190,447 172,135
Total liabilities and partners' equity $241,370 $242,353
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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