Just a reminder as to what the RNF long has to look forward to. In a previous press release the company set forth the following guidelines for the effects of both the plant expansion projects and the debt refinancing on a hypothetical 2014 distribution based on carying 2013 pricing forward to 2014....
Hypothetical 2014 distribution:
2013 Distribution , 2.6
Refinancing savings , +0.18
effect of no plant turnaround in 2014, +0.65
Plant expansion sales volume increase , +0.9
Total 2014 estimated dist. , 4.33
The answer t your question is that the extremely wet first quarter delayed planting in the midwest to the second quarter so fertilizer usage was delayed and first quarter earnings lower than expected. The second quarter results should hopefully make up the diffrence.
Rentech owns and operates wood fibre processing and nitrogen fertilizer businesses. Rentech also owns technologies designed to produce certified synthetic fuels and renewable power when integrated with third-party technologies.
Rentech’s financial results reflect the consolidated results of Rentech, Inc. and its subsidiaries, including Rentech Nitrogen Partners, L.P. The results of Rentech Nitrogen are reported as the nitrogen products manufacturing subsidiary of Rentech, which includes two operating segments: the East Dubuque Facility and the Pasadena Facility.
D. Hunt Ramsbottom, President and CEO of Rentech, said, “We continue to focus on disciplined capital allocation and maximizing shareholder returns. Our entry into the wood fibre processing business is expected to produce immediate cash flow, attractive returns, and significant growth.” Mr. Ramsbottom continued, “In the quarter, the nitrogen fertilizer business achieved solid product margins, although the year got off to a slow start due to bad weather. We are on track in reducing our spending in the alternative energy segment.”
Mr. Ramsbottom added, “With last week’s announcements, we’ve charted a path for growth at the parent company, with a stable margin profile in a business that is not subject to agricultural cycles. We expect Fulghum Fibres to generate annualized EBITDA of $20 million in 2013, and our announced pellet projects to begin generating EBITDA next year. At the same time, we continue the growth in our fertilizer business, with the ammonia expansion at the East Dubuque Facility on schedule and on budget, and our growth projects at the Pasadena Facility well underway.”