Rentech, Inc. (NYSE MKT: RTK) today announced its results for the three and six months ended June 30, 2013. Rentech owns and operates wood fibre processing and nitrogen fertilizer businesses. Rentech also owns technologies designed to produce certified synthetic fuels and renewable power when integrated with third-party technologies.
Rentech’s financial results reflect the consolidated results of Rentech, Inc. and its subsidiaries, including its wood fibre processing business and Rentech Nitrogen Partners, L.P. The results of the wood fibre processing business are reported as two operating segments: Fulghum Fibres (wood chipping) and wood pellets. The results of Rentech Nitrogen are reported as the nitrogen products manufacturing subsidiary of Rentech, which includes two operating segments: the East Dubuque Facility and the Pasadena Facility. Results of the energy technologies business are reported in a separate segment.
D. Hunt Ramsbottom, President and CEO of Rentech, said, “Our financial results for the quarter demonstrate the dramatic transformation we have undertaken at Rentech. Our new business at the parent, which is wood fibre processing, generated positive EBITDA, and we had no R&D expenditures this quarter. Our focus is now on opportunities with attractive returns within the wood fibre processing and nitrogen fertilizer segments, as we continue our low-cost efforts to monetize our energy technologies.” Mr. Ramsbottom continued, “Demand for nitrogen remains healthy although results for the quarter in that business were affected by the delayed and abbreviated spring application period and softer nitrogen prices.”
Mr. Ramsbottom continued, “Our integration of Fulghum Fibres into Rentech has been smooth, and we have been pleased with Fulghum Fibres’ financial performance and growth prospects relative to our conservative assumptions at the time of the acquisition.” Mr. Ramsbottom added, “Conversions of the decommissioned wood fibre mills to pellet production in Eastern Canada are progressing and are within budget.”
The financial statements for the periods ended June 30, 2013 include results of Fulghum Fibres from the closing of the acquisition on May 1, 2013.