CVR Energy, Inc. has announced its financial results for the third quarter of 2024.
Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change | Consensus Estimate | Comparison |
|---|---|---|---|---|---|
| Net Loss Attributable | $(124) million | $353 million | N/A | - | N/A |
| Loss Per Diluted Share | $(1.24) | $3.51 | N/A | $(0.09) | Miss |
| Adjusted Loss Per Diluted Share | $(0.50) | $1.89 | N/A | - | N/A |
| EBITDA Loss | $(35) million | $530 million | N/A | - | N/A |
| Adjusted EBITDA | $63 million | $313 million | Down 80% | - | N/A |
The significant drop in net income and earnings per share is attributed to challenges in the refining segment, including unplanned downtime due to external power supply outages.
Revenue Breakdown by Segments
| Segment | Q3 2024 Net Income | Q3 2023 Net Income | YoY Change |
|---|---|---|---|
| Petroleum | $(110) million | $460 million | N/A |
| Nitrogen Fertilizer | $4 million | $1 million | +300% |
The Petroleum Segment faced a challenging quarter with substantial losses, largely due to reduced refining throughputs, while the Nitrogen Fertilizer Segment showed improvement in net income and EBITDA performance.
Key Developments and Operational Highlights
- Petroleum Segment : Reported significant losses and reduced throughput due to unplanned downtimes and external power supply outages.
- Refining margin : Adjusted refining margin decreased from $20.73 per barrel in Q3 2023 to $8.23 per barrel for Q3 2024.
- Nitrogen Fertilizer Segment : Despite production capacity constraints, the segment reported better financial metrics compared to last year, with ammonia and UAN prices increasing by 9% and 3% respectively.
Comments from CVR Energy’s Officers
Dave Lamp, CEO, attributed the refining business's challenges to execution issues compounded by external factors affecting operations at key facilities. The company plans major turnarounds at its Coffeyville refinery in early 2025, impacting refinery margins and dividend decisions.
Dividends and Share Repurchase Program
CVR Energy announced that it will not pay a cash dividend for the third quarter of 2024, reflecting caution in the current margin environment. However, CVR Partners declared a cash distribution of $1.19 per common unit, to be paid on November 18, 2024.
Forward Guidance
Management did not provide specific forward guidance but highlighted planned major maintenance at the Coffeyville refinery as a significant factor for future financials.
Stock Price Movement
Post-earnings, CVR Energy shares experienced a modest increase, with stock prices moving up by approximately 0.29%.
In summary, CVR Energy experienced a challenging third quarter driven largely by issues within its refining operations. Despite this, its nitrogen fertilizer segment performed relatively well with improvements in product pricing and net income. The company's cautious stance on dividends and lack of forward guidance signal a conservative approach amidst current operational and market challenges.
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