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Sep 30, 2024
LSB Industries Q3 2024 Earnings Report
LSB Industries reported a net loss impacted by turnaround costs and non-cash charges, but saw an increase in adjusted EBITDA due to higher ammonia prices and lower natural gas prices.
Key Takeaways
LSB Industries reported a decrease in net sales compared to the third quarter of 2023. The company experienced a net loss, which included significant turnaround costs and one-time non-cash charges. However, adjusted EBITDA increased due to favorable dynamics in ammonia and natural gas pricing, along with increased industrial product production and sales.
Net sales decreased to $109.2 million compared to $114.3 million in Q3 2023.
Net loss was $25.4 million, including $16.3 million in turnaround costs and $5.6 million in one-time non-cash charges.
Diluted EPS was $(0.35), including approximately $(0.24) per share of turnaround costs and one-time non-cash charges.
Adjusted EBITDA increased to $17.5 million compared to $9.2 million in Q3 2023, driven by higher ammonia prices and lower natural gas prices.
Revenue by Segment
Forward Guidance
LSB Industries is focused on increasing production and sales volumes from core manufacturing assets and advancing low carbon product strategy.
Positive Outlook
- Completed an injury free and successful turnaround of our Pryor facility.
- Expect incremental 75,000 tons per year of UAN production from Pryor facility.
- Completed the construction of an additional 5,000 tons of nitric acid storage at our El Dorado facility.
- Expect to begin producing low carbon products at our El Dorado facility beginning in 2026 pending the approval by the EPA of the Class VI permit submitted by our partner, Lapis Energy.
- Expect to start a full FEED study during the first half of 2025 that should be completed by mid-2026, after which we anticipate moving on to FID.
Challenges Ahead
- Awaiting approval of Class VI permit to construct application by the EPA
- Turnaround at our Cherokee facility this November
- Turnaround of our El Dorado facility scheduled for the third quarter of 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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