Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of $150.0 million on sales of $206.5 million for the quarter ended December 31, 2012. This compares to net earnings of $129.8 million on sales of $201.0 million for the 2011 fourth quarter. Net income allocable to Common Units was $85.3 million ($4.61 per Common Unit) and $71.5 million ($3.87 per Common Unit) for the 2012 and 2011 fourth quarters, respectively.
Results for the fourth quarter of 2012 included an unrealized mark-to-market gain on natural gas derivatives of $1.0 million compared to a loss of $7.5 million in the fourth quarter of 2011.
For the full year 2012, TNCLP reported net earnings of $560.8 million on sales of $780.1 million. This compares to net earnings of $508.0 million on sales of $798.9 million in 2011. Net income allocable to Common Units was $315.6 million ($17.06 per Common Unit) and $283.6 million ($15.33 per Common Unit) in 2012 and 2011, respectively. The company had very strong operating results during 2012 and set a new ammonia production record.
Analysis of ResultsSales for the 2012 fourth quarter totaled $206.5 million, compared to sales of $201.0 million for the 2011 fourth quarter. This increase was due to higher ammonia and urea ammonium nitrate solution (UAN) product volumes and higher average ammonia selling prices. Comparing the 2012 to the 2011 fourth quarter, TNCLP’s:
- Ammonia average selling prices increased by 28 percent and UAN average selling prices decreased by 16 percent;
- Ammonia and UAN sales volumes increased by 17 and 5 percent, respectively; and
- Realized natural gas cost per MMBtu decreased by 16 percent.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV