Terra Nitrogen Company, L.P. Announces Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012; Provides Capital Expenditure Guidance for the Year 2013
For the year, the company reported total net sales $780.1 million against $798.9 million for the same period a year ago. Earnings from operations were $560.8 million against $507.9 million for the same period a year ago. Net earnings were $560.8 million against $508.0 million for the same period a year ago. Net earnings allocation to common units was $315.6 million against $283.6 million a year ago. Net earnings allocation to general partner was $239.7 million against $219.4 million a year ago. Net earnings allocation to class B common units was $5.5 million against $5.0 million a year ago. Net earnings per common unit were $17.06 against $15.33 a year ago. The decrease in sales was due to lower ammonia and UAN volumes and a lower UAN average selling price. The volume decline was due primarily to the timing impact of the implementation of a new Services and Offtake Agreement with CF Industries on January 1, 2011, which resulted in a one-time increase in sales volume recognized upon adoption of the agreement. Capital expenditures were $46.7 million as compared to $8.7 million in 2011.
For the year 2013, the company is expected to have capital expenditures in the range of $75 million to $100 million. The capital program includes a rail yard expansion, new ammonia and UAN storage tanks, and control and electrical system upgrades.