LSB Industries(US:LXU)2023-11-02 20:14Financial Performance - Q3 2023 net sales decreased year-over-year due to continued pricing weakness[53] - Q3 2023 Adjusted EBITDA was $9 million, down from $50 million in Q3 2022[23, 53] - Adjusted EBITDA margin decreased to 8% in Q3 2023, compared to 27% in Q3 2022[53, 61] - The company reported a net loss of $7.725 million for the three months ended September 2023[34] Market Overview - Corn supply is expected to decline modestly due to lower production[8] - Nitrogen prices have risen in recent months[8] - Tampa ammonia price settled at $625 per metric ton for November, up from $285 in July[18] - UAN (NOLA) spot price was $260 per short ton on October 27, 2023, compared to $553 per short ton on October 27, 2022[21] - Natural gas (NYMEX Spot Price) was $3.16 per MMBtu on October 27, 2023, compared to $5.19 per MMBtu on October 27, 2022[21] Strategic Initiatives - The company has a Stockholder Rights Plan in place to preserve substantial Net Operating Losses (NOLs)[3, 13] - The Rights Plan is designed to prevent an "ownership change" that could limit the use of NOLs[57] - LSB Industries is collaborating with INPEX, Air Liquide, and Vopak Moda to develop a world-scale blue ammonia production and export facility on the Houston Ship Channel[16, 31] - Expected production of 1.1 million metric tons of blue ammonia per year and sequestration of approximately 1.6 million metric tons of CO2[41]