LSB Industries, Inc. Provides Operational Update on Its Pryor, Oklahoma Facility
September 28 2017 - 7:30AM
Business Wire
LSB Industries, Inc. (NYSE:LXU) (“LSB” or “the Company”) today
announced that the ammonia plant at its Pryor, Oklahoma chemical
facility (“Pryor Facility” or “Pryor”) experienced a minor fire and
was taken out of service on September 23, 2017 to repair damage to
some of the plant’s electrical controls, wiring and piping. None of
the Company’s employees were injured, there was no damage to the
reformer or to other major pieces of equipment, and there was no
release of ammonia.
LSB management expects the repairs to be completed and ammonia
production to resume by the end of October 2017. The Company plans
to meet customer commitments for pre-sales of products by either
shipping from other facilities or by purchasing them from third
parties and thus, the ammonia plant downtime will not result in
reductions of UAN or ammonia sales volumes.
Management expects that the EBITDA impact resulting from the
repair expenses, the excess cost of purchasing UAN versus producing
it, and the reduced absorption of fixed costs will be approximately
$1.5 million to $2.0 million for the third quarter of 2017 and $2.5
million to $2.75 million for the fourth quarter of 2017.
LSB will provide an update on the progress of the repairs and
the impacts of the downtime on financial results when the Company
reports third quarter 2017 results in late October.
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, 2016 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170928005257/en/
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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