Rentech Nitrogen Partners, L.P. (RNF: Quote) posted first quarter net income of $19.37 million or $0.51 per unit versus $3.53 million last year.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.38 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter were $38.47 million, up from $23.94 million in the comparable period in the prior year. Analysts expected revenues of $33.18 million.
Current period revenues benefited from higher sales prices caused by a combination of low levels of grain and fertilizer inventories and expectations of higher corn acreage in 2012. Rentech Nitrogen's strong ammonia deliveries were enabled by the early onset of favorable weather in the region.
Commenting on the results for the period, Hunt Ramsbottom, CEO of Rentech Nitrogen GP, LLC, stated, "Rentech Nitrogen's first quarter results exceeded our expectations. An early spring application window, strong nitrogen demand, strong plant production and on-stream time, and low natural gas prices contributed to the exceptional results we reported today. During the quarter, we operated the plant at maximum capacity to take advantage of the strong market dynamics."
Ramsbottom continued, "We declared our first cash distribution of $1.06 per unit, which is better than anticipated. Based on current market conditions, we expect strong margins this year which should enable us to achieve total cash distributions for the year in the range of $2.86 per unit."
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by RTT Staff Writer
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