OCI Partners LP Reports 2016 Fourth Quarter Results

Run-Rate Quarterly Distribution Guidance

The decision to forgo our cash distribution for the three months ended December 31, 2016 reflects an average realized methanol price of $257 per metric ton, an average realized ammonia price of $199 per metric ton, and an average natural gas price of $3.10 per MMBtu.

To assist investors in making the linkage between these prices and potential future distributions, we provide below a sensitivity analysis:

• A $0.50 per MMBtu change in natural gas prices results in an approximately $0.23 impact on annual distributions
• A $10 per metric ton change in methanol prices results in an approximately $0.10 impact on annual distributions
• A $10 per metric ton change in ammonia prices results in an approximately $0.04 impact on annual distributions

It is our intention to continue making distributions consistent with our run-rate guidance, but there can be no assurance we will be able to do so. In addition to the impact of commodity prices, our distributions are subject to fluctuations in capacity utilization, working capital, capital expenditures, debt service and other contractual obligations, reserves for future operating or capital needs and other factors, including overall business, regulatory and financial considerations that may affect the availability of cash to distribute. Please see "Forward-Looking Statements" below."

Term B Loan and Revolver Covenant Amendments

On November 30, 2016, OCI Beaumont LLC ("OCIB"), the Partnership and OCI USA Inc. entered into an amendment to its Term Loan B Credit Facility ("Term Loan"). The amendment, among other things, improved the Term Loan's financial covenants. Concurrently, OCIB agreed to prepay $200 million of term loans under the Term Loan B Credit Facility with the proceeds of a borrowing from its parent company OCI N.V. through an Intercompany Term Facility. The borrowings under the Intercompany Term Facility are subordinated to the existing Term Loan.

On January 4, 2017, OCIB and the Partnership entered into an amendment to the Revolving Credit Agreement with Bank of America, N.A., as administrative agent, and the other lenders party thereto. The amendment, among other things, improved the Revolving Credit Agreement's financial covenants, extended the maturity of the Revolving Credit Facility until March 31, 2018 and increased the applicable margin by 1.25% to LIBOR + 4.75%.

OCI Beaumont becomes ISO 9001 and ISO 14001 certified and achieves Star status in the Voluntary Protection Program of OSHA

On December 20, 2016, OCI Beaumont became ISO 9001 and ISO 14001 certified, which are sets of international standards on quality assurance and environmental management developed by the International Organization for Standardization.

On March 1, 2016, OCI Beaumont also achieved Star status in the Voluntary Protection Program of the Occupational Safety and Health Administration. The program, in which companies participate voluntarily, recognizes facilities for their exemplary safety and health programs.

Statement from President and Chief Executive Officer – Frank Bakker

"During the fourth quarter, our ammonia and methanol production units were in operation for 89 days and 83 days generating capacity utilization rates of 99% and 88%, respectively. This was short of optimal utilization rates due to a power outage causing unplanned downtime of approximately 2.5 days in the ammonia production unit and approximately 4 days in the methanol production unit. We also took our methanol production unit off-line for approximately 8.5 days in order to change out the bearing of the steam turbine.

Contract and spot methanol prices increased during the quarter, but ammonia prices continued to decline. Our average realized methanol price was $257 per metric ton in the fourth quarter, up 20% from $214 per metric ton in the third quarter. Our average realized ammonia price was $199 per metric ton in the fourth quarter, down 15% from $235 per metric ton in the third quarter. Finally, our natural gas price averaged $3.10 per MMBtu during the quarter.

Looking forward, we expect higher first quarter 2017 average realized prices for both methanol and ammonia as a result of recent robust increases in contract and spot prices. Weighted average methanol contract prices increased by 36%, or almost $100 per metric ton during the fourth quarter of 2016, and a further 33% in the beginning of 2017 to reach $491 per metric ton in March. More recently, ammonia markets also turned positive, after reaching a multi-year low in November. Since then, ammonia (Tampa cfr) prices have increased by $120 to reach $330 per metric ton in March.

Methanol prices are currently benefiting from reduced supply globally and healthy demand. Recently, various plant outages around the world and continued natural gas curtailments in Trinidad have tightened global inventories. Global demand is expected to remain supported by Chinese Methanol-to-Olefins (MTO) demand. Two new Chinese MTO facilities started up in December 2016, adding more than 3 million metric tons of methanol demand, and at least one other facility is expected to commence operations in 2017.

Ammonia markets turned more bullish at the end of 2016, supported by widespread supply shortages at key export locations in Eastern Europe, the Middle East and Trinidad, improved demand from key ammonia importers and a rebound in prices of some downstream products, including caprolactam and urea."

	Volume Weighted Average Price of					Volume Weighted Average Price of
	Methanol and Ammonia					Natural Gas
	($ per metric ton)					($ per MMBtu)
	For Three-Months Ended December 31,					For Three-Months Ended December 31,
	2016			2015			2016			2015
Ammonia	199			378			3.10			2.32
Methanol	257			282
	Production					Capacity Utilization
	(in '000 tons)					Rate %
	For Three-Months Ended December 31,					For Three-Months Ended December 31,
	2016			2015			2016			2015
Ammonia	83			80			99%			96%
Methanol	203			211			88%			92%
	Volume Weighted Average Price of					Volume Weighted Average Price of
	Methanol and Ammonia					Natural Gas
	($ per metric ton)					($ per MMBtu)
	For Twelve-Months Ended December 31,					For Twelve-Months Ended December 31,
	2016			2015			2016			2015
Ammonia	258			425			2.57			2.73
Methanol	213			325
	Production					Capacity Utilization
	(in '000 tons)					Rate %
	For Twelve-Months Ended December 31,					For Twelve-Months Ended December 31,
	2016			2015			2016			2015
Ammonia	332			235			100% Werbung Mehr Nachrichten zur OCI ADR Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:00 - PR Newswire Moonpig Group Plc - Holding(s) in Company 08:55 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc 02:00 - PR Newswire FirstGroup Plc - Transaction in Own Shares SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59