OKLAHOMA CITY--(BUSINESS WIRE)--Oct. 19, 2016--
LSB Industries, Inc. (NYSE:LXU) (“LSB” or the “Company”) today announced
that its Pryor, Oklahoma chemical facility (“Pryor Facility” or “Pryor”)
resumed production of ammonia on October 8, 2016. The Company announced
on October 5, 2016 that Pryor’s scheduled Turnaround had been extended
to perform additional work on both the ammonia and urea plants in order
to increase their reliability going forward.
LSB expects Pryor’s urea plant to return to service by November 1, 2016,
which will enable the facility to resume production of urea ammonium
nitrate (UAN). Relative to the timeline disclosed in the Company’s
October 5, 2016 announcement, the urea plant’s return to service has
been delayed as a result of the inspection process by the welding
contractor’s Authorized Inspector (AI), which is responsible for
ensuring that work on pressure vessels meets federal and state codes. In
addition to addressing the increased scope of work dictated by the AI
related to corrosion in the urea plant’s pressure vessel and liner, LSB
has elected to implement design changes to the vessel’s liner in order
to minimize future corrosion and related downtime. Management expects
the additional downtime related to this work on Pryor’s urea plant to
have little to no impact on LSB’s fourth quarter 2016 EBITDA above what
was disclosed in the Company’s October 5, 2016 announcement.
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 includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identified by use of the
words “will”, “believes”, “expects”, “estimates”, “intends”,
“anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar
expressions, including, without limitation, impact of reduced
production, lost fixed cost absorption and repair expenses to third and
fourth quarters 2016 EBITDA; impact of lower sales from lower beginning
inventory, reduced production, identification and completion of repairs
and upgrades to deliver improved financial performance; and improvement
of on-stream rates, translating into greater revenue and profit in the
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
expectation will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors, including, but not limited to: general economic conditions;
weather conditions; increased maintenance costs; ability to install
necessary equipment and renovations at our Facilities in a timely
manner; changes to federal legislation or adverse regulations; increased
competitive pressures, domestic and foreign; ability to complete
transactions to address our leveraged balance sheet and cash flow
requirements; loss of significant customers; increased costs of raw
materials; and other factors set forth under “Risk Factors” and “Special
Note Regarding Forward-Looking Statements” in our Form 10-K for the year
ended December 31, 2015 and, if applicable, our Quarterly Reports on
Form 10-Q and our Current Reports on Form 8-K, which contain a
discussion of a variety of factors which could cause future outcomes to
differ materially from the forward-looking statements contained in this
release. 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 any
forward-looking statement to reflect events, new information or
circumstances occurring after the date of this press release except as
required by applicable law.
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Source: LSB Industries, Inc.
LSB Industries, Inc.
Mark Behrman, 405-235-4546
Equity Group Inc.
Fred Buonocore, 212-836-9607