Oklahoma City-based LSB Industries reports net loss in second quarter
LSB Industries Inc. reported a net loss from continuing operations of $17.7 million to shareholders in the second quarter, or 70 cents per share.
The Oklahoma City chemical manufacturer said its net loss from continuing operations applicable to common shareholders was $18.3 million, or 73 cents per share, which included $2.3 million in startup costs for its ammonia plant in El Dorado, Ark.
Net sales from continuing operations were $110 million in the second quarter.
The company completed and brought online the new 375,000-tons-per-year ammonia plant at its El Dorado plant and closed on the sale of its climate business in the second quarter.
Both milestones will improve the performance of the company, moving forward, LSB Industries CEO Daniel Greenwell said.
"With the addition of ammonia production, El Dorado's financial performance should improve in the second half of 2016 as a result of significantly lower feedstock costs, along with a greater overall volume of ammonia to upgrade to other products and to sell as part of our previously announced ammonia off-take agreement," Greenwell said in a statement. "Secondly, we closed the sale of our Climate Control Business to NIBE Industrier AB for $364 million which will allow us to deleverage, reduce our overall cost of capital and focus on improving the financial and operational performance of our Chemical Business.”
Results for LBS chemical operations declined mostly due to lower selling prices for its agricultural products and the startup costs for the El Dorado ammonia plant, Greenwell said.
Net sales of agricultural products were down 10.8 percent during the second quarter, driven by a 28 to 30 percent decline in ammonium nitrate products, the company reported.