OKLAHOMA CITY--(BUSINESS WIRE)--Jun. 12, 2018--
LSB Industries, Inc. (NYSE:LXU) (“LSB” or “the Company”) today announced
that the ammonia plant at its El Dorado, Arkansas chemical facility (“El
Dorado Facility” or “El Dorado”) was taken out of service on June 4,
2018 after a power failure at the facility. Since that time, LSB
management has been involved in the process of assessing the extent of
the necessary repairs and has determined that the power outage resulted
in tube failures in the ammonia plant’s boiler. LSB management estimates
that these repairs will be completed, and ammonia production will
resume, by the last week of June 2018. Management estimates the total
impact to EBITDA in the second quarter of 2018 resulting from unplanned
repair expenses, reduced absorption of fixed costs relating to the
downtime and lost sales will be approximately $10.0 million to $11.0
million.
While El Dorado’s ammonia plant is out of service, the company has
elected to pull forward work previously planned for the September 2018
Turnaround, which will further shorten the planned Turnaround in the
third quarter to five days, from the previously revised twelve days,
resulting in additional third quarter production and reduced Turnaround
expense.
Additionally, the ammonia plant at LSB’s Pryor, Oklahoma chemical
facility (“Pryor Facility” or “Pryor”) was taken out of service for
short periods at multiple points during the quarter to repair leaks to
the waste heat boiler. Management estimates the second quarter EBITDA
impact from the downtime at Pryor to be approximately $3.0 million to
$4.0 million.
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural, mining,
and industrial markets. The Company owns and operates facilities in
Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates
a facility for a global chemical company in Baytown, Texas. LSB’s
products are sold through distributors and directly to end customers
throughout the United States. Additional information about the Company
can be found on its website at www.lsbindustries.com.
Forward Looking Statement
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identifiable by use of
the words “may,” “believe,” “expect,” “intend,” “plan to,” “estimate,”
“project” or similar expressions, and include but are not limited to:
enhanced reliability at our Facilities; reducing costs; expanding into
new markets; reducing leverage and completing repairs on time and as
estimated.
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties.
Though we believe that expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectations will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors. These and other risk factors are discussed in the Company’s
filings with the Securities and Exchange Commission (SEC), including
those set forth under “Risk Factors” and “Special Note Regarding
Forward-Looking Statements” in our Form 10-K for the year ended December
31, 2017 and, if applicable, our Quarterly Reports on Form 10-Q and our
Current Reports on Form 8-K. All forward-looking statements included in
this press release are expressly qualified in their entirety by such
cautionary statements. We expressly disclaim any obligation to update,
amend or clarify and forward-looking statement to reflect events, new
information or circumstances occurring after the date of this press
release except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180612005496/en/
Source: LSB Industries, Inc.
LSB Industries, Inc.
Company:
Mark Behrman,
405-235-4546
Chief Financial Officer
or
Investor
Relations:
The Equity Group Inc.
Fred Buonocore, CFA,
212-836-9607
or
Kevin Towle, 212-836-9620
