Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells nitrogen fertilizer products including ammonia, urea ammonium 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 and six months ended June 30, 2012.
Three months ended June 30, 2012
Revenues for the three months ended June 30, 2012 were $70.6 million, compared to $74.4 million for the comparable period in the prior year. Favorable weather conditions allowed farmers in Rentech Nitrogen’s core market area of the Mid Corn Belt to apply spring ammonia earlier than is typical. This shifted meaningful volumes of ammonia deliveries into the first quarter that had been anticipated to occur in the second quarter of 2012. This also reduced the demand for UAN since more nitrogen was applied as ammonia during this longer ammonia application period. In addition, the hot, dry weather resulted in poor soil and crop conditions which led to reduced UAN application. The impact was largely offset by higher product prices, with ammonia and UAN prices higher by 9% and 21% respectively, compared to the second quarter of 2011.During the three months ended June 30, 2012, Rentech Nitrogen generated operating income of $41.6 million compared to $35.9 million during the comparable period in the prior year. For the three months ended June 30, 2012, net income was $41.2 million or $1.08 per unit. This compares to net income of $13.8 million for the comparable period last year. Included in the prior year’s net income was $9.2 million of loss on debt extinguishment. EBITDA for the period was $44.9 million, compared to $39.3 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.