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Jun 30, 2024
LSB Industries Q2 2024 Earnings Report
Reported operating results for the second quarter of 2024.
Key Takeaways
LSB Industries reported net sales of $140 million and a net income of $10 million for the second quarter ended June 30, 2024. The company repurchased approximately 0.8 million shares of common stock and $64 million in principal amount of Senior Secured Notes during the quarter. They also signed a five-year agreement to supply low carbon ammonium nitrate solution (ANS) to Freeport Minerals Corporation.
Net sales were $140 million compared to $166 million in the second quarter of 2023.
Net income was $10 million compared to $25 million in the second quarter of 2023.
Diluted EPS was $0.13 compared to $0.33 for the second quarter of 2023.
Adjusted EBITDA was $41 million compared to $47 million in the second quarter of 2023.
LSB Industries
LSB Industries
LSB Industries Revenue by Segment
Revenue by Segment
AN & Nitric Acid Revenue
CapyFin.comUrea Ammonium Nitrate (UAN) Revenue
CapyFin.comAmmonia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
LSB Industries has commenced a Turnaround at their Pryor facility and plan to conduct a Turnaround at their Cherokee facility in the fourth quarter. The EPA is currently indicating a final decision next Spring on the Class VI permit application submitted by their partner, Lapis Energy, for their El Dorado carbon capture and sequestration project. The company anticipates proceeding to a full FEED study for their Houston Ship Channel project and continues to have productive conversations with potential off-take parties for the low carbon product from this facility.
Positive Outlook
- Industrial business remains stable.
- Metals commodity prices are very supportive of maximizing production.
- Ammonia market is healthy and pricing has been strong.
- UAN pricing remains solid.
- Pre-FEED is underway with expected completion in Q4'24 for Houston Ship Channel Blue Ammonia project.
Challenges Ahead
- Corn futures prices have weakened.
- Increased stocks-to-use ratios.
- USDA forecasts for U.S. corn acres planted in 2024 higher than historical average.
- Potentially offsetting the above factors could be the impact of wet weather in certain growing regions resulting in reduced yields.
- Net sales and operating income declined during the quarter driven by lower pricing for UAN and our AN and nitric products coupled with lower sales volumes for HDAN and ammonia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income