LSB Industries, Inc. Provides Update on Its Pryor, Oklahoma Facility
October 19 2016 - 4:05PM
Business Wire
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 coming
quarters.
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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version on businesswire.com: http://www.businesswire.com/news/home/20161019006384/en/
Company:LSB Industries, Inc.Mark Behrman,
405-235-4546Chief Financial OfficerorInvestor Relations:The
Equity Group Inc.Fred Buonocore, 212-836-9607orKevin Towle,
212-836-9620
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