CVR Partners LP (UAN) Earnings Rocked by Plant Shutdown

Overall, the trends for world population growth, shrinking farmland, and increasing demand for nutrients seem to support a long-term investment in the fertilizer industry. But perhaps investors need to consider that unforeseen threats, such as Russian and Chinese supply and slowing Indian demand, are more than just short-term trends.

Foolish bottom line

Nitrogen appears to be one of the safer nutrient investments at the moment. Producers tend to be insulated from international woes and more dependent on domestic demand. That being said, the second quarter proved that having a single production facility continues to be a pretty big liability for investors in CVR Partners LP (NYSE:UAN). The company shut down its entire facility on July 27 to completely repair its catalysts. Ammonia production will resume on August 2 while UAN production will resume on August 3. If you still believe in the long-term trends for nitrogen demand, then you will have no problem lying low until next year’s planting season. At least you can collect a hefty payout in the meantime.

The article CVR Partners Earnings Rocked by Plant Shutdown originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko owns shares of CVR Partners. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.The Motley Fool has no position in any of the stocks mentioned. T

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