LSB Industries, Inc. (“LSB”) (NYSE: LXU) today provided an update on the operational status of its chemical facilities and commented on 2013 second quarter results. LSB expects to report its results for the second quarter ended June 30, 2013 on or about August 6, 2013.
On May 7, 2013,
we reported that following five months of planned and unplanned downtime at our Cherokee and Pryor Facilities, both facilities had resumed production and would be back to substantially full production in the second half of 2013. At that same time, we advised that the El Dorado Facility’s nitric acid capacity will continue at approximately 80% of the pre-May 2012 level until construction of the new nitric acid plant is completed in 2015.
The Cherokee Facility resumed production in early May and has continued to produce at near historical production rates during May and June. The El Dorado Facility was in production during the entire second quarter.
The Pryor Facility ammonia plant resumed production in late April. However, during May and June, the Pryor Facility ammonia plant was taken out of production once to replace a bearing, and later to replace a coupling that failed. While the Facility was not in operation, additional planned maintenance that had been scheduled for later in the year was performed. These events resulted in 30 days of cumulative unplanned downtime. At this time the Pryor Facility is in production.
During the second quarter, when the Pryor Facility ammonia plant was operating, it produced at near design rates, indicating that the new ammonia converter installed earlier in 2013 should fulfill expectations and sustain higher production rates than it had achieved over the past two and a half years.
Due to the lost production at the Pryor and Cherokee facilities during April, and the lost production at the Pryor Facility in May and June, along with the related high maintenance and repair costs, we estimate the cumulative negative effect to our 2013 second quarter operating income to be approximately $22 million to $24 million.