Incitec Pivot recommences Louisiana ammonia plant down since mid-February

HOUSTON (ICIS)–Australian producer Incitec Pivot Limited (IPL) announced that production at its Waggaman ammonia plant in Louisiana has successfully recommenced at the 800,000 tonne/year facility.

The plant had been shut down since 18 February following a release of hydrogen, with the date of the discharge not disclosed, which resulted in no injuries or any offsite impacts.

IPL has not revealed what caused the release still but said it has estimated that the impact to earnings associated with the downtime at the plant to be approximately $128m on earnings before interest and tax basis and $92m on a Net Profit After Tax basis.

It added that approximately 75% of the impact on earnings will be in the first half financial results.

IPL further said it is continuing to work with its insurers to progress a claim under the company’s comprehensive property insurance policy, but their first half financial results will not include any adjustments for potential insurance recoveries.

“I would like to recognise the efforts of our dedicated workforce on the ground at the Waggaman plant for returning the plant to full production. Our ability to make the necessary repairs as quickly and safely as possible would not have been possible without all the support we received from our engineering, design and construction partners who provided the appropriate materials, labour and expertise,” said Jeanne Johns, IPL managing director and CEO.