SIOUX CITY, Iowa--(BUSINESS WIRE)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH - News ) today reported net income of $81.6 million ($3.93 per Common Unit) on revenues of $174.5 million for the first quarter ended March 31, 2008. This compares with net income of $35.3 million ($1.87 per Common Unit) on revenues of $128.2 million for the 2007 first quarter.
TNCLP also announced a cash distribution for the quarter ended March 31, 2008, of $4.20 per common limited partnership unit payable May 28, 2008, to holders of record as of May 8, 2008. Cash distributions depend on TNCLP ’ s earnings, which can be affected by nitrogen selling prices, natural gas costs, seasonal demand factors, production levels and weather, cash requirements for working capital needs, and capital expenditures. Cash distributions per limited partnership unit also vary based on increasing amounts allocable to the General Partner when cumulative distributions exceed targeted levels. Those targeted levels were attained in the 2008 first quarter. Analysis of results
TNCLP ’ s first quarter earnings improvement over last year was due to higher nitrogen products selling prices, partially offset by lower sales volumes and higher natural gas costs. Commodity grain prices and U.S. nitrogen demand continued to be strong in the 2008 first quarter, contributing to the improved selling prices. Ammonia sales volumes decreased primarily because cold, wet conditions early in the application season delayed product shipments. From the 2007 to the 2008 first quarter, TNCLP ’ s:
- Ammonia and UAN selling prices increased by 46 percent and 54 percent, respectively. (Note that Terra previously reported UAN data on a 28% nitrogen basis. Beginning this quarter, we report all UAN data on a 32% nitrogen basis, and have converted all 2007 UAN data for comparison purposes.)
- Ammonia sales volumes decreased by 45 percent.
- Natural gas unit costs increased by 12 percent.
Forward natural gas position
TNCLP ’ s forward purchase contracts at March 31, 2008, fixed prices for about 23 percent of its next 12 months ’ natural gas requirements at $14.5 million below published forward markets at that date. TNCLP has entered into these forward gas positions to secure margins on nitrogen products sold forward at fixed prices.
About TNCLP
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products.
SIOUX CITY, Iowa--(BUSINESS WIRE)--Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH - News ) today reported net income of $81.6 million ($3.93 per Common Unit) on revenues of $174.5 million for the first quarter ended March 31, 2008. This compares with net income of $35.3 million ($1.87 per Common Unit) on revenues of $128.2 million for the 2007 first quarter.
TNCLP also announced a cash distribution for the quarter ended March 31, 2008, of $4.20 per common limited partnership unit payable May 28, 2008, to holders of record as of May 8, 2008. Cash distributions depend on TNCLP ’ s earnings, which can be affected by nitrogen selling prices, natural gas costs, seasonal demand factors, production levels and weather, cash requirements for working capital needs, and capital expenditures. Cash distributions per limited partnership unit also vary based on increasing amounts allocable to the General Partner when cumulative distributions exceed targeted levels. Those targeted levels were attained in the 2008 first quarter. Analysis of results
TNCLP ’ s first quarter earnings improvement over last year was due to higher nitrogen products selling prices, partially offset by lower sales volumes and higher natural gas costs. Commodity grain prices and U.S. nitrogen demand continued to be strong in the 2008 first quarter, contributing to the improved selling prices. Ammonia sales volumes decreased primarily because cold, wet conditions early in the application season delayed product shipments. From the 2007 to the 2008 first quarter, TNCLP ’ s:
- Ammonia and UAN selling prices increased by 46 percent and 54 percent, respectively. (Note that Terra previously reported UAN data on a 28% nitrogen basis. Beginning this quarter, we report all UAN data on a 32% nitrogen basis, and have converted all 2007 UAN data for comparison purposes.)
- Ammonia sales volumes decreased by 45 percent.
- Natural gas unit costs increased by 12 percent.
Forward natural gas position
TNCLP ’ s forward purchase contracts at March 31, 2008, fixed prices for about 23 percent of its next 12 months ’ natural gas requirements at $14.5 million below published forward markets at that date. TNCLP has entered into these forward gas positions to secure margins on nitrogen products sold forward at fixed prices.
About TNCLP
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen fertilizer products.
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$151.00999 (04/24/08)
