Terra Nitrogen Company, L.P. Announces Earnings and Operating Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Capex Guidance for 2014
For the full year 2013, TNCLP reported net earnings of $502.4 million on sales of $736.2 million. This compares to net earnings of $560.8 million on sales of $780.1 million in 2012. Net income allocable to Common Units was $291.8 million or $15.77 per Common Unit and $315.6 million or $17.06 per Common Unit in 2013 and 2012, respectively. Sales for the full year totaled $736.2 million, compared to sales of $780.1 million in 2012. This decrease was due to lower sales volume which was partially offset by higher ammonia selling prices. The sales volume decline was due primarily to planned plant turnaround activities completed during the third quarter. UAN average selling price was unchanged from last year, while the ammonia average selling price increased due to higher selling prices in the first half of 2013 as compared to the first half of 2012. In 2013, capital expenditures were $99.6 million as compared to $47.8 million in 2012. In 2013, the capital program included a rail yard expansion, new ammonia and UAN storage tanks, and control and electrical system upgrades. Some of these projects are extending beyond 2013.
For the quarter, the company reported Ammonia sales of 94,000 tons against 98,000 tons a year ago. UAN sales were 509,000 tons against 475,000 tons a year ago.
For the full year, the company reported Ammonia sales of 319,000 tons against 371,000 tons a year ago. UAN sales were 1,944,000 tons against 1,999,000 tons a year ago.
In 2014, TNCLP is expected to have capital expenditures in the range of $75 million to $125 million for projects, including a turnaround of approximately 50% of the plant that is anticipated to occur in the second half of the year.