Rentech Nitrogen Partners, L.P. (NYSE: RNF), which manufactures and sells nitrogen fertilizer products including ammonia, urea ammonium nitrate (UAN) solution and ammonium sulfate (AS), today announced its financial and operating results for the three and twelve months ended December 31, 2013.
“2013 was a challenging year. The spring season was delayed, and we saw substantial industry-wide declines in nitrogen prices. Both of our facilities were down for much of the fourth quarter, due to scheduled projects and unscheduled repairs and maintenance, which reduced production and sales volumes,” said D. Hunt Ramsbottom, CEO of Rentech Nitrogen. “As we enter 2014, both facilities are operating exceptionally well, and we expect normal on-stream factors this year. We completed our expansion, improvement and repair projects, so both plants are producing at significantly higher rates than last year. In addition, we continue to see higher prices for nitrogen products compared to the lows we witnessed during the second half of last year, and we remain encouraged that we will deliver improved financial and operating results in 2014.”
The Partnership’s results for 2013 were heavily affected by significant unanticipated declines in nitrogen fertilizer prices, which ended the year 20% to 30% below the price levels at the beginning of the year. Unusually high volumes of low-priced urea exports from China drove down global prices of nitrogen products, and a very wet spring application period throughout the U.S. markets delayed and reduced demand for nitrogen products.
Three months ended December 31, 2013
The financial results for the three months ended December 31, 2013 and 2012 include three months of operating results for the Pasadena, Texas facility (the Pasadena Facility) in 2013 and two months in 2012.
Revenues for the three months ended December 31, 2013 were $54.6 million, compared to $92.4 million for the comparable period in the prior year. Revenues for the fourth quarter of 2013 declined 44% year-over-year at the East Dubuque, Illinois facility (the East Dubuque Facility) and by 37% at the Pasadena Facility, due to industry-wide declines in nitrogen product prices, plant outages and lower production and sales volumes.