UAN Stock: From $58.22 To $47.50 (18.41% Decrease) Intraday Explanation

By Amit Chowdhry ● May 4, 2021
  • The stock price of CVR Partners LP (NYSE: UAN) fell from $58.22 to $47.50 (down 18.41%) during intraday trading. This is why it happened.

The stock price of CVR Partners LP (NYSE: UAN) – a manufacturer of ammonia and urea ammonium nitrate (“UAN”) solution fertilizer products – fell from $58.22 to $47.50 (down 18.41%) during intraday trading. Investors are responding negatively to the company announcing a net loss of $25 million, or $2.37 per common unit, on net sales of $61 million for the first quarter of 2021, compared to a net loss of $21 million, or $1.83 per common unit, on net sales of $75 million for the first quarter 2020. And EBITDA was $5 million for the first quarter of 2021, compared to $11 million for the first quarter of 2020.

KEY QUOTES:

“During the first quarter 2021, CVR Partners continued to operate safely and reliably while responding to Winter Storm Uri, which negatively impacted shipments from both our East Dubuque and Coffeyville fertilizer facilities. However, we were able to quickly react to the weather event, reducing throughput at East Dubuque and selling contracted natural gas to capitalize on market opportunities. In addition, our Coffeyville facility was one of the only plants capable of operating during the storm due to its use of petroleum coke as its feedstock.”

“The nitrogen fertilizer industry reached an inflection point during the first quarter of 2021, where improved farmer economics translated into increased demand for nitrogen fertilizer as well as much higher pricing. So far, the spring planting season has gone well, with nitrogen fertilizer prices materially higher in the second quarter compared to the first quarter.”

— Mark Pytosh, Chief Executive Officer of CVR Partners’ general partner

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.