OCI Partners posts 2Q loss on lower prices; warns of possible covenant breach

摘要

OCI Partners LP, citing lower ammonia and methanol prices, posted a second-quarter loss of $15 million on sales of $56 million, compared to a year-ago net income of $13 million on sales of $80 million. Citing weak ammonia and methanol prices, OCI told analysts it believes that it may not be in compliance with certain covenants under its credit facility as of September 2016, and it will likely not be in compliance with certain covenants as of Dec. 31,2016. "Therefore, we are currently exploring multiple options to prevent or remediate such noncompliance, including refinancing the credit facility, seeking waivers, or amendments to the credit facility," said Frank Bakker, president and CEO. In addition, the company does not expect any cash distributions for the quarter.