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Stock Market & Financial Investment News

News For LXU From The Last 14 Days
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July 14, 2015
16:25 EDTLXULSB raises cost estimate for El Dorado expansion to $560M-$575M
LSB Industries provided an update on the status of the expansion project at its El Dorado, Arkansas facility. "The new nitric acid plant and concentrator are on schedule to be completed and operational by the end of Q3. The 375,000 ton per year ammonia plant remains on schedule to be completed and operational in 1Q16," said the company. The current cost estimate for the EDC expansion has been raised to $560M-$575M, up from the previous estimate of $495M-$520M. Based on managementís current project cost estimates and forecast for operating cash flow, at this time LSB does not expect to require additional financing to complete the EDC expansion. Contributing to the increased cost estimate to complete the EDC expansion were productivity and quality issues with a subcontractor responsible for the installation of piping in the ammonia plant. "Even with the anticipated higher costs, we believe that the project economics remain compelling, with the new capacity expected to yield approximately $90M of annual incremental EBITDA operating at full capacity," said CEO Barry Golsen.

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