Terra Nitrogen Company, L.P. Reports First Quarter Results, Declares Cash Distribution

Apr 25, 2001, 01:00 ET from Terra Nitrogen Company, L.P.

    SIOUX CITY, Iowa, April 25 /PRNewswire Interactive News Release/ --
     Terra Nitrogen Company, L.P. (NYSE:   TNH) (TNCLP) today reported net income
 of $1.6 million, or $.08 per limited partnership unit, on revenues of
 $60.0 million for the quarter ended March 31, 2001.  This compares with a net
 income of $4.3 million, or $.23 per limited partnership unit, on revenues of
 $69.9 million for the 2000 first quarter.   The net income decrease was due
 primarily to higher natural gas costs and lower sales volumes partially offset
 by higher selling prices.
     TNCLP's natural gas unit purchase costs, after reductions of about
 $0.3 million from related forward pricing contracts, were 158 percent higher
 than in the 2000 first quarter.  These abnormally high natural gas costs
 caused TNCLP to idle most of its plants at the beginning of the quarter.
 Strong nitrogen fertilizer selling prices and natural gas cost decreases
 allowed TNCLP to restart all of its plants during the quarter.  As of March
 31, 2001, 14 percent of TNCLP's expected natural gas requirements for the next
 12 months had been priced at about $0.7 million below the published market
 prices at that date.
     Overall sales volumes were over 50 percent lower than in the 2000 first
 quarter.  This shortfall was due primarily to weather delaying the start of
 the nitrogen application season.  Ammonia, nitrogen solutions and urea prices
 were 138, 113 and 71 percent higher, respectively, than first quarter 2000
 prices.  These price increases were due to lower industry-wide supplies caused
 primarily by production curtailments.
     TNCLP also announced a cash distribution for the quarter ended March 31,
 2001, of $0.22 per limited partnership unit payable May 29 to holders of
 record as of May 8, 2001.  Cash distributions are dependent on TNCLP's
 earnings, working capital requirements and capital expenditures.  TNCLP's
 quarterly earnings are usually highest in the quarter ending June 30 due to
 the seasonal demand for fertilizer.  Quarterly earnings can also be affected
 by TNCLP's selling prices for nitrogen products, natural gas costs and
 production levels and weather.
     Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
 fertilizer products.
     Information contained in this release, other than historical information,
 may be considered forward-looking.  Forward-looking information reflects
 management's current views of future events and financial performance that
 involve a number of risks and uncertainties.  The factors that could cause
 actual results to differ materially include, but are not limited to, the
 following:  changes in financial markets, general economic conditions within
 the agricultural industry, competitive factors and price changes (principally
 selling prices of nitrogen and methanol products and natural gas costs),
 changes in product mix, changes in the seasonality of demand patterns, changes
 in weather conditions, changes in governmental regulations and other risks
 described in the "Factors That Affect Operating Performance" section of
 TNCLP's current annual report.
     Note:  Terra Industries' news announcements are also available on its web
 site, http://www.terraindustries.com , and by fax at no charge by calling
 800-758-5804, code 437906.
 
     Company News On-Call:  http://www.prnewswire.com/comp/106067.html or fax,
 800-758-5804, ext. 106067.
 
 
                          TERRA NITROGEN COMPANY, L.P.
                       Consolidated Statements of Income
                                  (unaudited)
 
     (in thousands, except per unit amounts)            Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     Product revenues                                 $59,899        $69,716
     Other income                                          90            169
       Total revenues                                  59,989         69,885
 
     Cost of goods sold                                53,053         59,379
     Depreciation and amortization                      3,180          3,201
       Total cost of sales                             56,233         62,580
 
       Total gross profits                              3,756          7,305
 
     Operating expenses                                 2,098          2,378
     Interest expense - net                                60            638
       Net income                                      $1,598         $4,289
 
     Earnings per limited partnership unit              $0.08         $ 0.23
 
       The amount of net income allocable to the Limited Partnership's interest
       is based on the Partnership's net income and the proportionate share of
       cash distributed to the Limited Partners and the General partner.
 
 
     Sales Volumes and Prices        2001                       2000
 
                              Sales       Average        Sales       Average
                             Volumes     Unit Price     Volumes     Unit Price
                            (000 tons)    ($/ton)      (000 tons)    ($/ton)
     Ammonia                    19          $314          128          $132
     Nitrogen Solutions        354           132          601            62
     Urea                       36           207          128           121
 
 
                          TERRA NITROGEN COMPANY, L.P.
                          Consolidated Balance Sheets
                                  (unaudited)
 
                                                             March 31,
                                                          (in thousands)
     ASSETS                                             2001           2000
     Cash and short-term investments                      $10         $5,859
     Account receivable                                27,901         31,464
     Inventories                                       59,262         38,010
     Other current assets                               3,038          1,179
       Total current assets                            90,211         76,512
 
     Property, plant and equipment, net               145,549        154,125
     Other assets                                       9,115         12,366
       Total assets                                  $244,875       $243,003
 
     LIABILITIES
     Short-term note and current portion of
      long-term debt                                   $2,387        $19,866
     Accounts payable and accrued liabilities          44,767         42,875
       Total current liabilities                       47,154         62,741
 
     Long-term debt                                     7,481             --
     Other liabilities                                  5,316          5,316
       Total liabilities                               59,951         68,057
 
     PARTNERS' EQUITY                                 184,924        174,946
       Total liabilities and stockholders' equity    $244,875       $243,003
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X73305831
 
 

SOURCE Terra Nitrogen Company, L.P.
    SIOUX CITY, Iowa, April 25 /PRNewswire Interactive News Release/ --
     Terra Nitrogen Company, L.P. (NYSE:   TNH) (TNCLP) today reported net income
 of $1.6 million, or $.08 per limited partnership unit, on revenues of
 $60.0 million for the quarter ended March 31, 2001.  This compares with a net
 income of $4.3 million, or $.23 per limited partnership unit, on revenues of
 $69.9 million for the 2000 first quarter.   The net income decrease was due
 primarily to higher natural gas costs and lower sales volumes partially offset
 by higher selling prices.
     TNCLP's natural gas unit purchase costs, after reductions of about
 $0.3 million from related forward pricing contracts, were 158 percent higher
 than in the 2000 first quarter.  These abnormally high natural gas costs
 caused TNCLP to idle most of its plants at the beginning of the quarter.
 Strong nitrogen fertilizer selling prices and natural gas cost decreases
 allowed TNCLP to restart all of its plants during the quarter.  As of March
 31, 2001, 14 percent of TNCLP's expected natural gas requirements for the next
 12 months had been priced at about $0.7 million below the published market
 prices at that date.
     Overall sales volumes were over 50 percent lower than in the 2000 first
 quarter.  This shortfall was due primarily to weather delaying the start of
 the nitrogen application season.  Ammonia, nitrogen solutions and urea prices
 were 138, 113 and 71 percent higher, respectively, than first quarter 2000
 prices.  These price increases were due to lower industry-wide supplies caused
 primarily by production curtailments.
     TNCLP also announced a cash distribution for the quarter ended March 31,
 2001, of $0.22 per limited partnership unit payable May 29 to holders of
 record as of May 8, 2001.  Cash distributions are dependent on TNCLP's
 earnings, working capital requirements and capital expenditures.  TNCLP's
 quarterly earnings are usually highest in the quarter ending June 30 due to
 the seasonal demand for fertilizer.  Quarterly earnings can also be affected
 by TNCLP's selling prices for nitrogen products, natural gas costs and
 production levels and weather.
     Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
 fertilizer products.
     Information contained in this release, other than historical information,
 may be considered forward-looking.  Forward-looking information reflects
 management's current views of future events and financial performance that
 involve a number of risks and uncertainties.  The factors that could cause
 actual results to differ materially include, but are not limited to, the
 following:  changes in financial markets, general economic conditions within
 the agricultural industry, competitive factors and price changes (principally
 selling prices of nitrogen and methanol products and natural gas costs),
 changes in product mix, changes in the seasonality of demand patterns, changes
 in weather conditions, changes in governmental regulations and other risks
 described in the "Factors That Affect Operating Performance" section of
 TNCLP's current annual report.
     Note:  Terra Industries' news announcements are also available on its web
 site, http://www.terraindustries.com , and by fax at no charge by calling
 800-758-5804, code 437906.
 
     Company News On-Call:  http://www.prnewswire.com/comp/106067.html or fax,
 800-758-5804, ext. 106067.
 
 
                          TERRA NITROGEN COMPANY, L.P.
                       Consolidated Statements of Income
                                  (unaudited)
 
     (in thousands, except per unit amounts)            Three Months Ended
                                                             March 31,
                                                        2001           2000
 
     Product revenues                                 $59,899        $69,716
     Other income                                          90            169
       Total revenues                                  59,989         69,885
 
     Cost of goods sold                                53,053         59,379
     Depreciation and amortization                      3,180          3,201
       Total cost of sales                             56,233         62,580
 
       Total gross profits                              3,756          7,305
 
     Operating expenses                                 2,098          2,378
     Interest expense - net                                60            638
       Net income                                      $1,598         $4,289
 
     Earnings per limited partnership unit              $0.08         $ 0.23
 
       The amount of net income allocable to the Limited Partnership's interest
       is based on the Partnership's net income and the proportionate share of
       cash distributed to the Limited Partners and the General partner.
 
 
     Sales Volumes and Prices        2001                       2000
 
                              Sales       Average        Sales       Average
                             Volumes     Unit Price     Volumes     Unit Price
                            (000 tons)    ($/ton)      (000 tons)    ($/ton)
     Ammonia                    19          $314          128          $132
     Nitrogen Solutions        354           132          601            62
     Urea                       36           207          128           121
 
 
                          TERRA NITROGEN COMPANY, L.P.
                          Consolidated Balance Sheets
                                  (unaudited)
 
                                                             March 31,
                                                          (in thousands)
     ASSETS                                             2001           2000
     Cash and short-term investments                      $10         $5,859
     Account receivable                                27,901         31,464
     Inventories                                       59,262         38,010
     Other current assets                               3,038          1,179
       Total current assets                            90,211         76,512
 
     Property, plant and equipment, net               145,549        154,125
     Other assets                                       9,115         12,366
       Total assets                                  $244,875       $243,003
 
     LIABILITIES
     Short-term note and current portion of
      long-term debt                                   $2,387        $19,866
     Accounts payable and accrued liabilities          44,767         42,875
       Total current liabilities                       47,154         62,741
 
     Long-term debt                                     7,481             --
     Other liabilities                                  5,316          5,316
       Total liabilities                               59,951         68,057
 
     PARTNERS' EQUITY                                 184,924        174,946
       Total liabilities and stockholders' equity    $244,875       $243,003
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X73305831
 
 SOURCE  Terra Nitrogen Company, L.P.