Mississippi Chemical Corporation (NYSE: GRO) has reported results for the second fiscal quarter ended Dec. 31, 2000. Net sales increased 27 percent to $136.3 million from $107.3 million in the prior-year period. For the quarter, the company reported a net loss of $9.2 million, or 35 cents per diluted share, compared to a net loss of $10.0 million, or 38 cents per diluted share, in the prior-year quarter. Operating loss was $9.0 million for the quarter compared to a loss of $10.6 in the second quarter of fiscal 2000. For the quarter, EBITDA (earnings before interest, taxes, depreciation and amortization) was $3.6 million compared to $1.8 million for the prior-year quarter. During the quarter, the company liquidated its natural gas futures positions for a pre-tax gain of approximately $16 million as reported on Dec. 11, 2000. Although the cash from the transaction was collected in the second fiscal quarter, pursuant to hedge accounting rules, income recognition will occur primarily in the third fiscal quarter. For the six months ended Dec. 31, 2000, net sales increased to $256.4 million from $204.3 million in the prior-year period. During the first half of fiscal 2001, the company incurred a net loss of $21.5 million, or 82 cents per diluted share, compared to a net loss of $15.6 million, or 60 cents per diluted share, for the six months ended Dec. 31, 1999. Operating loss was $23.7 million during the six months ended Dec 31, 2000, compared to an operating loss of $18.2 million for the prior-year period. EBITDA was $2.4 million, compared to $6.4 million for the first six months of fiscal 2000. In announcing the results, Charles O. Dunn, president and chief executive office, says, "We realized improved operating income in our nitrogen operations during the second fiscal quarter compared to the prior-year period, despite a 69 percent increase in our corporate average natural gas price. Market conditions for our nitrogen products have improved since the prior-year period, when we faced very low prices. Extraordinarily high natural gas prices in the current year forced industry-wide domestic production curtailments, which further tightened the supply/demand balance and pushed prices higher. Industry consultants estimate that the domestic ammonia industry was running at approximately 50 percent of capacity at the beginning of January. We have continued to run our nitrogen operations based on the natural gas price/product price relationship and our commitments to customers, and therefore, we operated them at less than full capacity during the quarter. "Our phosphate prices showed some improvement from what we experienced earlier in the fiscal year, although prices remain at depressed levels. In addition, higher raw material prices increased the cost of production. Market conditions remain soft in the international markets as we enter the spring season. "Results from our potash operations were down from year-ago levels, but showed improvement in performance from the first fiscal quarter. Lower production costs and better ore grade at the West mine positively impacted results compared to the first fiscal quarter. "We continued to focus on managing debt and liquidity levels during the quarter. By minimizing capital expenditures, selling certain non-core assets and achieving cost savings from reductions in our workforce; the company has been able to maximize cash flow in the environment. In addition, the decision to liquidate our natural gas futures positions allowed us to take advantage of the early December run up in natural gas prices, which created more cash than converting that gas to fertilizer. Long-term debt was $325.5 million at the end of the quarter, down $23.6 million from Dec. 31, 1999. "The most significant single factor affecting our performance will continue to be the relationship between the price of natural gas and the price for our nitrogen products. Nitrogen prices have shown continued strength in the spot market since the end of December, moving to levels not experienced for several years. While gas prices have come down since the end of December, they remain volatile. As we enter the spring season, the environment in which we operate will continue to be very dynamic as the combination of volatile natural gas prices, reduced product availability and planting intentions will determine how we run our operations over the next several months." DBJ