LSB Industries, Inc. Provides Operational Update on Its El Dorado, Arkansas and Pryor, Oklahoma Facilities
June 12 2018 - 7:30AM
Business Wire
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180612005496/en/
LSB Industries, Inc.Company:Mark Behrman,
405-235-4546Chief Financial OfficerorInvestor Relations:The
Equity Group Inc.Fred Buonocore, CFA, 212-836-9607orKevin Towle,
212-836-9620
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