SIOUX CITY, Iowa, Oct. 28 /PRNewswire/ -- Terra Nitrogen Company, L.P.
(TNCLP) (NYSE: TNH) today reported a net loss of $7.0 million on revenues of
$44.4 million for the third quarter ended September 30, 1999. This compares
with net income of $4.7 million on revenues of $33.6 million for the 1998
third quarter. The net loss per limited partnership unit was $0.37 for the
1999 third quarter compared with net income of $0.25 per limited partnership
unit for the same quarter last year.
The net loss for the first nine months of 1999 was $6.6 million, or $0.35
per limited partnership unit, on revenues of $167.0 million. For the
comparable 1998 period, net income was $38.6 million, or $1.65 per limited
partnership unit, on revenues of $183.4 million.
The decline in earnings during the third quarter resulted from lower
selling prices for all of the nitrogen products sold by the partnership.
Compared with the 1998 third quarter, 1999 prices declined 23% for ammonia, 9%
for solutions and 27% for urea. The continuing pressure on prices reflects
worldwide overcapacity in the industry. Year-to-date prices are down 21%, 9%
and 25% for ammonia, solutions and urea, respectively.
Third quarter sales volumes of UAN solutions were 290,000 tons (140%)
higher in 1999 than in 1998 due to an earlier start to fill dealer storage
capacity. Despite the increased 1999 sales volumes, the effects of lower
prices and higher costs resulted in a net loss for the partnership during the
quarter. As compared to 1998, natural gas costs increased 12% during the 1999
third quarter and 7% for the first nine months of 1999.
TNCLP also announced that there would be no cash distribution for the
quarter ended September 30, 1999.
Terra Nitrogen Company, L.P. is a leading manufacturer and marketer of
nitrogen fertilizer products.
Note: Terra Nitrogen's news announcements are also available by fax at no
charge by calling 800-758-5804, code 106067.
(Tables follow)
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
($ in Thousands, Except Per Unit Amounts)
Three Months Ended Nine Months Ended
September 30 September 30
1999 1998 1999 1998
Product revenues $44,145 $33,305 $166,524 $182,327
Other income 207 301 465 1,029
Total revenues 44,352 33,606 166,989 183,356
Cost of goods sold 45,844 23,744 157,170 127,558
Depreciation and amortization 3,242 3,105 9,717 9,217
Total cost of sales 49,085 26,849 166,887 136,775
Total gross profit (4,734) 6,757 102 46,581
Operating expenses 2,042 2,123 6,149 7,636
Interest expense -- net 229 (37) 574 305
Net income (loss) $(7,004) $4,671 $(6,621) $38,640
Earnings per limited
partnership unit $(0.37) $0.25 $(0.35) $1.65
The amount of net income allocable to the Limited Partners' interest is
based on the Partnership's net income and the proportionate share of cash
distributed to the Limited Partners and the General Partner.
Nitrogen Volumes and Prices 1999 1998
Quarter Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 80 $99 83 $128
Nitrogen Solutions 497 58 207 64
Urea 86 88 77 121
1999 1998
Year to Date Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 365 $112 301 $141
Nitrogen Solutions 1,589 61 1,455 67
Urea 311 93 339 124
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
($ in Thousands)
September 30,
1999 1998
ASSETS
Cash and short-term investments $14 $16
Accounts receivable 26,840 1,718
Inventories 37,744 51,642
Other current assets 615 1,597
Total current assets 65,213 54,973
Property, plant and equipment, net 159,595 166,817
Other assets 17,545 13,136
Total assets $242,353 $234,926
LIABILITIES
Short-term note and current portion of long-term debt $33,268 $19,883
Accounts payable and accrued liabilities 31,248 21,405
Total current liabilities 64,516 41,288
Long-term debt 386 8,438
Other liabilities 5,316 6,581
Total liabilities 70,218 56,307
PARTNERS' EQUITY 172,135 178,619
Total liabilities and partners' equity $242,353 $234,926
SOURCE Terra Nitrogen Company, L.P.
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Company News On-Call:
http://www.prnewswire.com/comp/106067.html or fax,
800-758-5804, ext. 106067
CONTACT:
Mark Rosenbury of Terra Industries, Inc.,
712-279-8756
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