OKLAHOMA CITY--LSB Industries, Inc. (NYSE:LXU) (“LSB” or the “Company”) today announced that its Pryor, Oklahoma chemical facility (“Pryor Facility” or “Pryor”) resumed production of ammonia on October 8, 2016. The Company announced on October 5, 2016 that Pryor’s scheduled Turnaround had been extended to perform additional work on both the ammonia and urea plants in order to increase their reliability going forward.
LSB expects Pryor’s urea plant to return to service by November 1, 2016, which will enable the facility to resume production of urea ammonium nitrate (UAN). Relative to the timeline disclosed in the Company’s October 5, 2016 announcement, the urea plant’s return to service has been delayed as a result of the inspection process by the welding contractor’s Authorized Inspector (AI), which is responsible for ensuring that work on pressure vessels meets federal and state codes. In addition to addressing the increased scope of work dictated by the AI related to corrosion in the urea plant’s pressure vessel and liner, LSB has elected to implement design changes to the vessel’s liner in order to minimize future corrosion and related downtime. Management expects the additional downtime related to this work on Pryor’s urea plant to have little to no impact on LSB’s fourth quarter 2016 EBITDA above what was disclosed in the Company’s October 5, 2016 announcement.
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 includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by use of the words “will”, “believes”, “expects”, “estimates”, “intends”, “anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar expressions, including, without limitation, impact of reduced production, lost fixed cost absorption and repair expenses to third and fourth quarters 2016 EBITDA; impact of lower sales from lower beginning inventory, reduced production, identification and completion of repairs and upgrades to deliver improved financial performance; and improvement of on-stream rates, translating into greater revenue and profit in the coming quarters.
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 expectation will prove to be correct. Actual results may differ materially from the forward-looking statements as a result of various factors, including, but not limited to: general economic conditions; weather conditions; increased maintenance costs; ability to install necessary equipment and renovations at our Facilities in a timely manner; changes to federal legislation or adverse regulations; increased competitive pressures, domestic and foreign; ability to complete transactions to address our leveraged balance sheet and cash flow requirements; loss of significant customers; increased costs of raw materials; and other factors set forth under “Risk Factors” and “Special Note Regarding Forward-Looking Statements” in our Form 10-K for the year ended December 31, 2015 and, if applicable, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K, which contain a discussion of a variety of factors which could cause future outcomes to differ materially from the forward-looking statements contained in this release. 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 any forward-looking statement to reflect events, new information or circumstances occurring after the date of this press release except as required by applicable law.