In summary, net sales in the first quarter of 2021 were $127.8 million, generating $5.6 million of net income and $15.7 million of adjusted EBITDA. Encouraging demand indicators, coupled with continued optimization of our export model, point to the possibility for upside for the remainder of the year. Overall, we maintain a strong long-term view for the business, and I am confident Ciner is positioned to capitalize on anticipated improving soda ash fundamentals, which should translate into increased cash flows, better enabling us to execute on our growth strategy.” Despite strong sales volumes in the quarter, we continue to face a challenging pricing environment. Due to pricing dropping at the end of last year, contracted domestic sales price in 2021 is down 10% from the first quarter of 2020. Spot pricing in our export markets has also been slow to recover, but we have seen positive indications for the balance of this year and are optimistic that as demand recovers, pricing will follow. On the cost side, disruptions in global supply chains have resulted in volatile vessel rates and have impacted our realized pricing in the near term. These risks are not new to our business, and we believe that with direct control of our export planning we gain better flexibility to manage our costs as well as the opportunity to optimize our customer mix, better manage onsite inventory levels, and improve collaboration with Ciner Group to serve global customers. Financial Highlights
Oguz Erkan, CEO, commented: “I am happy to report favorable results in the first quarter, with the soda ash market continuing to show positive signals in most markets. Customer demand was strong in the first quarter, as evidenced by our highest ever quarterly sales volume of 720 thousand tons. This was despite a minor disruption to our operations in February when a major winter storm obstructed natural gas infrastructure, causing us to idle some of our production. Net sales of $127.8 million increased 11.7% from the prior-year first quarter.Soda ash volume produced decreased 4.7% from the prior-year first quarter and soda ash volume sold increased 8.5% from the prior-year first quarter.Net income of $5.6 million decreased $8.6 million from the prior-year first quarter.Adjusted EBITDA of $15.7 million decreased 29.9% from the prior-year first quarter.Basic earnings per unit of $0.12 for the quarter decreased 64.7% over the prior-year first quarter of $0.34.Net cash used in operating activities of $(6.4) million decreased 138.3% over net cash provided in operating activities in the prior-year first quarter.Distributable cash flow of $4.7 million decreased 47.8% compared to the prior-year first quarter.The distribution coverage ratio was N/A and 1.32 for the three months ended March 31, 2021 and 2020, respectively.
Our transition out of ANSAC has gone smoothly, and we are satisfied with our export performance three months into our new structure. We dispatched multiple vessels on our own account in the first quarter and we expect to continue to optimize our logistics and sales network for the remainder of the year. As the soda ash market and global supply chains continue to normalize, our added flexibility and established distributor network should allow for agile export planning and a focus on value generation. First Quarter 2021 Financial Highlights:
(Dollars in millions, except per unit amounts) Three Months Ended March 31,
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- Ciner Resources LP Announces First Quarter 2021 Financial Results |
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