Oklahoma City’s LSB Industries, Inc. reported record earnings this week, stating that its EBITDA was an all-time highest quarterly in company history.
Adjusted EBITDA was $158.1 million compared to $46 million in the second quarter a year ago. Net sales were $284.8 million, up from the $140.7 million recorded in the second quarter of 2021.
The company’s adjusted EBITDA margin was 55.5% compared to nearly 33% a year earlier. Its cash flow from operations totaled $135.3 million and the firm’s total liquidity as of June 30 was more than $500 million.
LSB also authorized and launched a share repurchasing effort under a $50 million buyback program.
“We had another quarter of record results with significant year-over-year growth in net sales, adjusted EBITDA and EPS,” stated Mark Behrman, LSB’s President and CEO in announcing the second quarter earnings report.
“We benefitted from higher selling prices compared to last year, and our strategic commercial initiatives enabled us to optimize our sales mix in the face of a dynamic market environment.”
Nitrogen pricing declined through the second quarter from April’s peak levels. This decline was largely due to a combination of wet weather throughout the corn belt, which delayed the fertilizer application season, along with the typical drop in fertilizer demand headed into the summer season.
“Even so, pricing remains well above year ago levels and there are multiple supply and demand factors currently at play that we expect will support strong pricing for the remainder of 2022 and for 2023, if not longer, even in the event of a recession,” added Behrman.
In late-April, LSB announced a CO2 capture and sequestration or ‘blue’ ammonia project at its El Dorado facility. A month later, the company announced a feasibility study for a zero-carbon or ‘green’ ammonia project at its Pryor facility.