US CVR Partners views Q2 results as solid despite decrease in income and sales

HOUSTON (ICIS)–Although net income and sales fell year on year, US fertilizer producer CVR said it had a solid result for Q2 2024, which was driven in part by a combined ammonia production rate of 102%.

The producer of ammonia and urea ammonium nitrate (UAN) announced during the period it had a net income of $26 million and net sales of $133 million for Q2 compared to net income of $60 million and net sales of $183 million for the second quarter of 2023.

CVR said its facilities remained consistent compared to this quarter in 2023 as they produced 221,000 short tons of ammonia, of which 69,000 net tons were available for sale.

The remaining balance was upgraded to other products, including 337,000 short tons of urea ammonia nitrate (UAN).

In Q2 2023, those levels were at 219,000 tons of ammonia, with 70,000 net tons available to sale with the remainder upgraded, including 339,000 short tons of UAN.

The average realized gate prices for UAN has also decreased with it down by 15% to $268/short ton, while ammonia dropped 26% to $520/short ton year-on-year.

During this period in 2023 the average realized gate prices for UAN and ammonia were at $316/short ton and $707/short ton respectively.

“CVR Partners reported solid operating results for the second quarter of 2024 driven by safe, reliable operations and a combined ammonia production rate of 102%,” said Mark Pytosh, CVR Partners CEO.

“The spring planting season experienced some weather interruptions, however, planted acreage was higher than expected and demand for nitrogen fertilizer was strong.”

Pytosh added that they expect to see good demand for nitrogen fertilizer remaining throughout 2024 even with prices being higher than experienced in 2023.

“Our focus for the remainder of the year will continue to be on safe, reliable operations and maximizing our free cash flow generation,” Pytosh said.