CVR Partners, LP reported a decline in net sales for the three months ended September 30, 2024, totaling $125.2 million, down from $130.6 million in the same period of 2023. For the nine months ended September 30, 2024, net sales were $385.8 million, a significant decrease from $539.9 million in the prior year. The decrease in sales was primarily attributed to unfavorable sales volumes and pricing conditions for urea ammonium nitrate (UAN) and ammonia, which contributed to a combined revenue loss of approximately $145.5 million.
Despite the drop in sales, the company experienced an increase in operating income for Q3 2024, which rose to $11.0 million from $8.1 million in Q3 2023. This improvement was driven by lower utility costs due to decreased natural gas and electricity prices, as well as favorable personnel costs related to share-based compensation. However, for the nine-month period, operating income fell to $64.6 million from $184.2 million in 2023, reflecting the impact of lower product sales prices linked to natural gas prices.
Net income for Q3 2024 was reported at $3.8 million, a notable increase from $731,000 in Q3 2023. For the nine months ended September 30, 2024, net income was $42.6 million, down from $162.5 million in the same period of the previous year. The decline in net income for the nine-month period was primarily due to lower sales prices and volumes, despite the positive performance in Q3.
The company’s cash flow from operating activities also decreased significantly, totaling $137.8 million for the nine months ended September 30, 2024, compared to $261.4 million in 2023. However, cash and cash equivalents increased to $110.5 million as of September 30, 2024, up from $45.3 million at the end of 2023.
CVR Partners continues to focus on strategic objectives, including improving environmental, health, and safety standards, enhancing operational reliability, and maintaining financial discipline. The company is also exploring the potential to utilize natural gas as an alternative feedstock at its Coffeyville facility, which could provide feedstock flexibility in nitrogen fertilizer production.
As of September 30, 2024, the company maintained compliance with all covenants under its debt instruments, with long-term debt reported at $547.7 million. The partnership declared a distribution of $1.19 per common unit for Q3 2024, totaling $12.6 million, payable in November 2024.
About CVR PARTNERS, LP
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