CVR Partners’ Revenue Breakdown Worldwide (2018-2023)

This statistic highlights CVR Partners’ Revenue Breakdown Worldwide, split between Ammonia, UAN, Urea, Freight and other sources, reported quarterly from Q1 2018 onwards.

CVR Partners’ Revenue Breakdown Worldwide

The data shows that the firm experienced robust revenue in Q1 2023, with UAN accounting for the majority at 72.63% followed by ammonia at 16.57%. Additionally, this statistic explores the other revenue streams, including freight revenue and urea products, and discusses the company’s overall revenue trends over the quarters.

Product-wise Revenue Breakdown in Q1 2023

In the first quarter of 2023, CVR Partners, LP reported a total revenue of $226,261,000. The revenue contribution by product category was as follows:

UAN

 72.63% ($164,341,000) – UAN (urea ammonium nitrate) products accounted for the largest share of revenue, reflecting the crucial role it plays in driving the firm’s financial performance.

Ammonia

 16.57% ($37,499,000) – Ammonia was the second most significant contributor to the total revenue, showcasing its importance to the company’s operations.

Freight revenue

4.83% ($10,936,000) – Freight revenue represented the costs incurred for delivery before customer acceptance, and it contributed to the overall revenue stream.

Freight revenue represented 4.83% of the total revenue in Q1 2023. This revenue stream arises from the recognition of delivery costs incurred before customer acceptance, which are subsequently reimbursed by customers. The corresponding expenses for freight are included in the Cost of Materials and Other category.

Urea products                                                                                                                

3.61% ($8,170,000) – Urea products constituted a smaller but still noteworthy portion of the company’s revenue.

Other revenue

 2.35% ($5,315,000) – Other revenue sources included sales of nitric acid and revenue associated with the 45Q Transaction, providing additional streams of income. Other revenue, comprising 2.35% of the total revenue, includes the sales of nitric acid and revenue associated with the 45Q Transaction. The 45Q Transaction involves the Partnership receiving non-cash consideration while selling carbon-oxide. The revenue related to the CO Contract is recognized gradually over a period of seven years and three months, based on the volumes of carbon oxide delivered during the contractual term.

Revenue Trends Over the Quarters

CVR Partners’ total revenue exhibited a gradual fluctuation over the quarters. In Q2 2022, the revenue rose from $222,873,000 in Q1 2022 to $244,000,000. However, it declined to $156,478,000 in Q3 and then experienced a recovery to $212,233,000 in Q4. This was followed by a slight increase in overall revenue, amounting to $226,261,000 in Q1 2023.

The data illustrates CVR Partners’ diversified revenue streams, with UAN and ammonia acting as key drivers, supported by freight revenue and other sources like nitric acid sales and the 45Q Transaction. The fluctuations in total revenue over the quarters can be attributed to the company’s primary business of nitrogen fertilizer production, which is influenced by seasonal variations in demand from the agricultural sector. Based on historical patterns, it is anticipated that the company will observe a rise in overall revenue reported in Q2 2023. The consistent trend in product-wise revenue contributions and the steady growth reflect the stability and performance of CVR Partners in the market.

Company Overview

CVR Partners, LP is a Delaware limited partnership established in 2011 by CVR Energy, Inc. to operate and expand its nitrogen fertilizer business. The company’s mission is to become a leading North American Nitrogen-based Fertilizer company, guided by core values like Safety, Environment, Integrity, Corporate Citizenship, and Continuous Improvement.

They operate two manufacturing facilities in Kansas and Illinois, producing Ammonia and other nitrogen fertilizers, primarily UAN, which are vital for enhancing crop yield and quality, particularly in wheat and corn farming.

CVR Partners’ main customers are agricultural retailers and distributors for UAN products and both agricultural and industrial sectors for ammonia. The sales are typically wholesale contracts with fixed pricing and short-term durations.

The company’s revenue is subject to seasonal fluctuations, as demand for nitrogen fertilizers is influenced by crop planting decisions, crop prices, soil conditions, and weather patterns. Net sales are higher in the first half of the year during the planting season and lower in the second half during the fill season.

Key customers play a significant role in their revenue, with the top two customers representing a substantial portion of net sales in recent years.

Overall, CVR Partners’ focus on agricultural commodities makes them sensitive to seasonal changes in the demand for nitrogen fertilizers in the farming industry.

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