Terra Nitrogen Company, L.P. Reports Fourth Quarter
DEERFIELD, IL (Feb. 17, 2015)—Terra Nitrogen Company, L.P. (TNCLP) (NYSE: TNH) today reported net earnings of $95.0 million on sales of $168.0 million for the quarter ended December 31, 2014. This compares to net earnings of $113.6 million on sales of $168.3 million for the 2013 fourth quarter. Net income allocable to Common Units was $56.5 million ($3.05 per Common Unit) and $69.0 million ($3.73 per Common Unit) for the 2014 and 2013 fourth quarters, respectively.
For the full year 2014, TNCLP reported net earnings of $370.0 million on sales of $648.3 million. This compares to net earnings of $502.4 million on sales of $736.2 million in 2013. Net income allocable to Common Units was $223.3 million ($12.07 per Common Unit) and $291.8 million ($15.77 per Common Unit) in 2014 and 2013, respectively.
Results for the fourth quarter of 2014 included an unrealized net mark-to-market loss on natural gas derivatives of $5.5 million compared to a gain of $9.3 million in the fourth quarter of 2013. For the full year 2014, TNCLP had an unrealized net mark-to-market loss on natural gas derivatives of $12.6 million compared to a gain of $9.1 million in 2013.
Analysis of Results
Sales for the 2014 fourth quarter totaled $168.0 million, only slightly lower than sales of $168.3 million for the 2013 fourth quarter, as changes in price and volume for each product largely offset one another. Ammonia average selling price increased compared to the prior year due to tight global supply resulting from reduced production in off-shore regions. UAN average selling price decreased due to the lingering impacts of UAN demand being diminished by high ammonia application earlier in 2014.
Net earnings for the 2014 fourth quarter totaled $95.0 million, compared to net earnings of $113.6 million for the 2013 fourth quarter. The decrease in net earnings was primarily driven by higher natural gas costs, including the unrealized mark-to-market loss on derivatives, for the 2014 period as compared to 2013.
Comparing the fourth quarter 2014 to 2013, TNCLP’s:
Ammonia average selling prices increased by 9 percent and UAN average selling prices decreased by 2 percent;
Ammonia sales volume decreased by 1 percent and UAN sales volume increased by less than 1 percent; and
Realized natural gas cost per MMBtu increased by 12 percent.
Sales for the full year totaled $648.3 million, compared to sales of $736.2 million in 2013. This decrease was due to lower ammonia and UAN average selling prices and slightly lower UAN sales volume, which were partially offset by higher ammonia sales volume. Ammonia average selling price decreased due to the impact in the first half of 2014 from high industry inventories carried over from 2013. UAN average selling price and sales volume decreased due to demand being taken away by ammonia applications throughout the first half of 2014. Ammonia sales volume increased due to strong demand in the first half of 2014 and higher production volume than in 2013 when plant turnaround activities occurred.
Net earnings for the full year totaled $370.0 million, compared to net earnings of $502.4 million in 2013. The decrease in net earnings was primarily driven by lower selling prices and higher natural gas costs in 2014 as compared to 2013.
The following information was filed by Terra Nitrogen Co L P De (TNH) on Tuesday, February 17, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: TNH CIK: 879575 Form Type:10-K Annual Report Accession Number: 0001628280-15-001078 Submitted to the SEC: Thu Feb 26 2015 2:52:29 PM EST Accepted by the SEC: Thu Feb 26 2015 Period: Wednesday, December 31, 2014 Industry: Agricultural Chemicals