The following is a summary of the LSB Industries, Inc. (LXU) Q1 2024 Earnings Call Transcript:
Financial Performance:
LSB Industries reported Q1 adjusted EBITDA of $33 million and EPS of $0.08.
The company repurchased $33 million of its notes and about 700,000 shares of stock during Q1, totaling $75 million of debt and 1.5 million shares repurchased year-to-date.
The expected Q2 2024 adjusted EBITDA will be lower than Q2 2023 due to lower selling prices, but is anticipated to increase sequentially over Q1 2024 due to higher sales volumes and lower natural gas costs.
Business Progress:
LSB Industries continues to work on two low-carbon ammonia projects and numerous improvements to plant operations.
Participation in multiple conferences in June is expected to further their business reach.
The company is on track to reach their target leverage ratio through a combination of debt and stock buyback.
They are exploring the possibility of partnering with Amogy to open up new markets for the use of low-carbon ammonia.
Business initiatives focus on decreasing the carbon footprint in the mining industry and improving product mix for better margins in fertilizer sales.
The company plans for a urea expansion at Pryor in the next plant turnaround for improved operational rates, while expecting additional expenditure on SG&A related to reliability programs.
More details: LSB Industries IR
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