Interest expense was $9.7 million for the nine months ended September 30, 2013, compared to $0.2 million for the prior-year period. The increase was attributable to debt incurred for the purchase of the Pasadena Facility and expansion projects at the East Dubuque and Pasadena Facilities.
Rentech Nitrogen realized a non-cash gain of $4.9 million for the nine months ended September 30, 2013 as a result of a decrease in the potential earn-out consideration related to the acquisition of Agrifos. The reduction in fair value was primarily due to lower results in 2013 caused by a delayed and abbreviated spring application season and higher levels of urea exports from China, suppressing product prices, and reduced expectations for profits from the Pasadena Facility.
Net income was $21.5 million or $0.54 per basic unit, for the current period. Excluding the loss on goodwill impairment of $30.0 million, loss on debt extinguishment of $6.0 million and the gain on fair value adjustment to earn-out consideration of $4.9 million, net income allocated to common unitholders for the current period was $52.3 million or $1.34 per basic unit. This compares to net income of $89.4 million or $2.34 per basic unit for the same period last year.
OutlookA routine inspection during the bi-annual turnaround at the East Dubuque Facility in late October identified the need to repair the foundation of one of the three existing syngas compressors, taking that compressor out of service. This unplanned repair will require the ammonia plant to run below the planned post-expansion capacity of 1,020 tons per day, at a rate of approximately 790 tons per day, until repairs are completed. Since the problem has just been identified, the repair schedule is in development, but is estimated not to exceed 90 days or cost more than $2 million in operating and capital expenses, which will affect the fourth quarter of 2013 and first quarter of 2014. The East Dubuque Facility is expected to operate at its expanded production rates in 2014, following completion of the repair of the foundation.
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