Dear PGM-CAPITAL blog readers,
Today, November 1st 2011, after the bell, Terra Nitrogen Company, L.P. (NYSE: TNH) a mayor producer and distributer of nitrogen fertilizer, reported its Q3-2011, financial results.
Highlights:
- The company reported net earnings of US$128.4 million on net sales of US$203.3 million for the three months ended September 30, 2011.
This compares to net earnings of US$35.2 million on net sales of US$136.0 million for the three months ended September 30, 2010 - Net earnings allocable to common units were $72.4 million ($3.91 per common unit) and $25.9 million ($1.40 per common unit) for the 2011 and 2010 third quarters, respectively.
- For the first nine months of 2011, the company reported net earnings of US$378.2 million on net sales of US$597.9 million. This compares to net earnings of U$135.8 million on net sales of US$421.7 million for the first nine months of 2010.
- Net earnings allocable to common units were US$212.1 million (U$11.46 per common unit) and US$ 99.9 million (US$ 5.40 per common unit) for the first nine months of 2011 and 2010, respectively.
- Board of Directors has declared a cash distribution for the quarter ended September 30, 2011, of US$3.96 per common limited partnership unit payable November 29, 2011, to holders of record as of November 14, 2011.
Based on the company’s fundamentals, today’s blockbuster Q3-2011 financial report, a dividend yield of 9.65%, (based on yesterday closing price) and a P/E ratio of 8,74 we have a STRONG BUY rating on the company.
Disclosure:
By mid July 2010, we have placed Terra Nitrogen Corporation on our watch list, and since than we’ve start adding it to our personal portfolio and those of our clients.
Please receive here below an all tine chart of the company.
Last be but not least, before following any investing advice, always take your investment horizon and risk tolerance into consideration and keep in mind that the price of Commodities as well as the stocks of their producers can be very volatile and that sharp corrections might happen in the short term.
Yours sincerely
Eric Panneflek
Chairman