SIOUX CITY, Iowa -- Terra Nitrogen Company L.P. today reported a net loss of $8.4 million on revenues of $117.7 million for the fourth quarter ended Dec. 31, 2005, due primarily to a spike in natural gas costs caused by hurricane disruption. Full-year net income was up by $10 million, however.



The quarterly result compares with net income of $12.5 million, or $.66 per unit, on revenues of $81.6 million for the fourth quarter of 2004.



For the 12 months ending Dec. 31, 2005, TNCLP's net income was $55.9 million, or $2.95 per unit, on revenues of $455.5 million, compared to net income of $45.9 million, or $2.43 per unit on revenues of $419.6 million in 2004.



The fourth quarter loss was due primarily to a spike in natural gas costs caused by hurricane activity in the 2005 second half, partially offset by higher sales volumes and product selling prices. Ammonia and nitrogen solutions selling prices for the 2005 fourth quarter were 28 and 32 percent higher, respectively, than 2004 fourth quarter selling prices.



The improvement in TNCLP's full-year net income was due to higher product selling prices, partially offset by higher natural gas costs and lower sales volumes. Natural gas unit costs for 2005, net of about $0.5 million of cost increases from forward purchase contracts, were about 41 percent higher than those incurred in 2004.



Terra Nitrogen Company L.P. is a leading manufacturer of nitrogen fertilizer products.



SOURCE: Terra Nitrogen Company via Business Wire.