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Dec 31, 2023
LSB Industries Q4 2023 Earnings Report
LSB Industries reported a net loss due to lower pricing for all products, which was slightly offset by higher sales volumes of ammonia and UAN, with operating profit benefiting from lower natural gas prices.
Key Takeaways
LSB Industries reported a net loss of $5 million on net sales of $133 million for Q4 2023, compared to a net income of $66 million on net sales of $234 million for Q4 2022. The results were impacted by lower pricing for all products, partially offset by higher sales volumes of ammonia and UAN. The company is advancing a new large-scale, low-carbon ammonia project on the Houston Ship Channel.
Net sales decreased to $133 million compared to $234 million in the fourth quarter of 2022.
Net loss was $5 million compared to net income of $66 million in the fourth quarter of 2022.
Diluted EPS was ($0.07) compared to $0.83 for the fourth quarter of 2022.
Adjusted EBITDA was $25 million compared to $105 million in the fourth quarter of 2022.
Revenue by Segment
Forward Guidance
Estimated ammonia production and product sales volumes for the full year 2024 are as follows:
Positive Outlook
- Urea prices have moved up recently due, in part, to Chinese urea export limitations; UAN prices are starting to follow
- Expectations are for strong demand for nitrogen fertilizers in the Spring 2024 planting season
- Current prices for ammonia and other nitrogen products should prove attractive to retailers and farmers
- Attractive U.S. corn prices providing support for fertilizer demand
- Industrial and mining business is robust
Challenges Ahead
- Ammonia pricing is expected to moderate further in 2024 after recent pricing declines
- Heavy ammonia application by U.S. farmers in Fall of 2023
- Natural gas prices in Europe have declined to their lowest levels since 2021 as a result of warm weather and high gas storage levels in the region
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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