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Sep 30, 2023
LSB Industries Q3 2023 Earnings Report
LSB Industries reported disappointing results due to weaker pricing and lower production volumes, but manufacturing operations have been performing well since early September.
Key Takeaways
LSB Industries reported a net loss of $8 million on net sales of $114 million for the third quarter of 2023, compared to a net income of $2 million on net sales of $184 million for the third quarter of 2022. The results were impacted by weaker pricing and lower production volumes.
Net sales of $114 million compared to $184 million in the third quarter of 2022
Net loss of $8 million compared to net income $2 million in the third quarter of 2022
EPS of ($0.10) compared to $0.03 for the third quarter of 2022
Adjusted EBITDA of $9 million compared to $50 million in the third quarter of 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
Nitrogen pricing increased in recent months, reflecting production outages at several large international ammonia plants and low inventory levels.
Positive Outlook
- Nitrogen pricing increased in recent months reflecting production outages at several large international ammonia plants
- Nitrogen pricing increased in recent months reflecting low inventory levels resulting from destocking throughout the nitrogen distribution channel
- Expectations of strong demand for nitrogen fertilizers in the Fall 2023 ammonia application season and the Spring 2024 planting season
- Current prices for ammonia and other nitrogen products should prove attractive to retailers and farmers
- Favorable U.S. corn market dynamics providing support for stronger fertilizer pricing later this year and into next year
Challenges Ahead
- Increased U.S. ammonia production capacity coming online in early 2024 may partially offset strengthening pricing trends
- Impacts of high inflation in the U.S. are offset by global producers shifting production from international facilities to U.S. operations
- Awaiting approval of Class VI permit application by the EPA; expected in first half of 2023
- On hold until the IRS provides further clarity on 45V tax credits and our view of capital costs points to more favorable economics for the project
- Amogy to test tug boat with engine retrofitted for ammonia as a fuel by year-end 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income