Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells nitrogen fertilizer products including ammonia, urea ammonia nitrate solution (UAN) and liquid and granular urea in the Mid Corn Belt region of the United States, today announced its results for the three months ended March 31, 2012.
Revenues for the three months ended March 31, 2012 were $38.5 million, as compared to $23.9 million for the comparable period in the prior year. Current period revenues benefited from higher sales prices caused by a combination of low levels of grain and fertilizer inventories and expectations of higher corn acreage in 2012. Rentech Nitrogen’s strong ammonia deliveries were enabled by the early onset of favorable weather in the region.
During the three months ended March 31, 2012, Rentech Nitrogen generated operating income of $19.5 million as compared to $9.0 million during the comparable period in the prior year.
For the three months ended March 31, 2012, net income was $19.4 million or $0.51 per unit. This compares to net income of $3.5 million for the comparable period last year. EBITDA for the period was $21.9 million, as compared to $10.5 million in the corresponding period in 2011. Further explanation of EBITDA, a non-GAAP financial measure, and a reconciliation of Rentech Nitrogen's EBITDA to net income have been included below in this press release.
Commenting on the results for the period, D. Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, “Rentech Nitrogen’s first quarter results exceeded our expectations. An early spring application window, strong nitrogen demand, strong plant production and on-stream time, and low natural gas prices contributed to the exceptional results we reported today. During the quarter, we operated the plant at maximum capacity to take advantage of the strong market dynamics.” Mr. Ramsbottom continued, “We declared our first cash distribution of $1.06 per unit, which is better than anticipated. Based on current market conditions, we expect strong margins this year which should enable us to achieve total cash distributions for the year in the range of $2.86 per unit.”