This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rentech Nitrogen Announces Results For Second Quarter 2012; Raises 2012 Guidance

Commenting on the results for the period, D. Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, “Rentech Nitrogen continues to perform exceptionally well. The facility, which operated at 100% capacity during the quarter, achieved strong margins. This resulted in a better than anticipated second quarter cash distribution of $1.17 per unit.” Mr. Ramsbottom continued, “The drought has severely impacted corn yields, which has pushed corn and nitrogen prices higher. As a result, we now expect to achieve total cash distributions in excess of $3.30 per unit this year. We also anticipate 2013 to be a strong year, given the early indications of higher nitrogen product pricing for sales we have transacted for next year.”

Rentech Nitrogen continues to benefit from relatively low North American natural gas prices, which, when coupled with strong nitrogen product prices, contributed to gross profit margin of 65% for the period, up from 50% for the comparable period in the prior year.

Selling, general and administrative (SG&A) expenses were $3.9 million for the three months ended June 30, 2012, compared to $1.5 million for the prior-year period. The increase in SG&A expenses was primarily due to costs associated with having become a publicly traded limited partnership and included an increase of $0.7 million in non-cash unit-based compensation expense.

Six months ended June 30, 2012

Revenues for the six months ended June 30, 2012 were $109.1 million, compared to $98.3 million for the comparable period in the prior year. The increase in revenue for the six months ended June 30, 2012 was primarily due to increased sale prices for ammonia and UAN of 9% and 25%, respectively, over the same period last year, which was partially offset by decreased sales volume for UAN as described above.

During the six months ended June 30, 2012, Rentech Nitrogen generated operating income of $61.1 million, compared to $44.9 million during the comparable period in the prior year.

2 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs