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Sep 30, 2022
LSB Industries Q3 2022 Earnings Report
LSB Industries reported strong top and bottom line growth despite executing two turnarounds.
Key Takeaways
LSB Industries reported net sales of $184 million and adjusted EPS of $0.27 for the third quarter ended September 30, 2022. The company benefited from higher selling prices and strategic commercial initiatives.
Net sales of $184 million compared to $127 million in the third quarter of 2021.
Adjusted EBITDA of $50 million compared to $38 million in the third quarter of 2021.
Adjusted EPS of $0.27 compared to $0.07 in the third quarter of 2021.
Total liquidity of approximately $450 million as of September 30, 2022.
LSB Industries
LSB Industries
LSB Industries Revenue by Segment
Revenue by Segment
AN & Nitric Acid Revenue
CapyFin.comAmmonia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Market conditions remain intact to keep fertilizer prices above historical averages for the remainder of 2022 and full year 2023.
Positive Outlook
- Farmer economics continue to be very favorable as a result of strong global demand for corn in the face of constrained supply.
- Corn prices remain above 10-year averages and farmer profitability is meaningfully positive despite inflation across their cost inputs.
- Demand for agricultural ammonia is expected to be strong through November and into December as farmers seek to replenish the nitrogen in their soil in advance of the coming Spring planting season.
- Domestic natural gas prices remain a fraction of those in Europe, giving U.S. ammonia producers a substantial cost advantage in the global market.
- Rising global consumption of coal has strengthened demand and pricing for ammonium nitrate.
Challenges Ahead
- Dry conditions in South America, the Western U.S. and parts of Europe coupled with continued high demand for corn from China.
- Natural gas costs in Europe continue to be a major driver of high fertilizer prices.
- Moving into the winter heating season it appears possible that European gas prices could rise again if temperatures are below average for periods of time as supply remains tight.
- The impact of the Russian invasion of Ukraine and the ongoing conflict in the region has contributed to the constraints to both global grain and ammonia supplies.
- Orders from customers producing products largely for export to Europe and Asia have softened to a degree given weakening international economies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income