In a release on
The Partnership's results for 2013 were heavily affected by significant unanticipated declines in nitrogen prices, which ended the year 20 percent to 30 percent below price levels at the beginning of the year. Unusually high volumes of low-priced urea exports from
The Partnership has completed all repairs relating to the East Dubuque Facility's compressor foundation and fire at lower cost and more quickly than the estimates disclosed when those problems occurred, and the Facility is currently running at nameplate capacity. The Partnership filed an insurance claim for approximately
The Partnership believes that a number of factors may contribute to improved operating and financial results in 2014 compared to 2013. Capacity expansion projects have been completed that should increase production at both facilities, and projects to improve efficiency and reliability have been completed at the Pasadena Facility. Both facilities are forecasted to operate at upgraded capacity in 2014, with no scheduled down-time for East Dubuque and no scheduled interruptions to production of ammonium sulfate, other than normal scheduled maintenance for Pasadena. The Partnership currently expects positive EBITDA at the Pasadena Facility this year due to improved margins and operating rates.
Recent increases in prices for nitrogen products from lower levels experienced late in 2013 are encouraging. However, the current market environment is different this year relative to early 2013, with lower corn prices and somewhat lower, albeit strong, anticipated corn plantings. These factors and the dynamics that affect input prices could rapidly change based on weather patterns and other conditions, and could positively or negatively affect product prices, margins, deliveries and cash distributions. Cash distributions in 2014 may be significantly less than cash available for distribution if the Company elects to replenish working capital reserves that were diminished by the negative cash available for distribution in the fourth quarter of 2013.
To assist investors in assessing the impacts of possible changes in the pricing of key inputs and products on
Due to the current uncertainty about spring sales, and about pricing of products and natural gas,
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In a release on