UPDATE 2-Rentech's wider Q1 loss sends shares down 17 pct

* Q1 loss $0.05/shr vs est loss $0.01/shr

* Q1 rev falls 47 pct on lower fertilizer prices

* Shares fall 17 pct, worst in 6 months (Adds details, analysts' comments, updates share movement)

By Krishna N. Das

Feb 10 (Reuters) - Fertilizer maker Rentech Inc (RTK.A) posted a second straight quarterly loss that was wider than market estimates, hurt by lower fertilizer prices, sending its shares down about 17 percent.

The company said fertilizer prices remained subdued on substantial declines in natural gas prices and weak economic conditions.

Shares of the company, which also provides clean energy technology, fell more than 17 percent to 99 cents, -- its largest percentage fall in nearly six month.

Natural gas will remain depressed in the short term due to abundant supply, and so the likely scenario is that fertilizer prices will remain low, Simmons & Co analyst Burt Chao said by phone.

While U.S. natural gas prices have recovered somewhat from 7-½ year lows, heavy supplies and weak demand are still a burden.

The company, however, said that strong forecasts for corn acreage and recent changes to U.S. Environmental Protection Agency's renewable fuels standard is likely to boost revenue this fiscal.

It projected fiscal year 2010 operating income at its fertlizer unit Rentech Energy Midwest Corp (REMC) to be in excess of $20 million.

"The forecast reflects strengthening demand, but in our view bakes in a necessary amount of conservatism; results can be highly volatile (as shown in first quarter)," Raymond James analyst Pavel Molchanov said.

Q1 LOSS WIDENS

First-quarter net loss for Rentech -- whose technology converts gas produced from waste, biomass and fossil resources into hydrocarbons -- widened to $15.5 million, or 7 cents a share, from $1.0 million, or 1 cent a share a year ago.

Excluding items related to its unit REMC, its loss was 5 cents a share, compared with analysts' expectations of a loss of 1 cent, according to Thomson Reuters I/B/E/S.

Revenue fell 47 percent to $27.1 million. Analysts on average were looking for revenue of $41.46 million.

The company's shares were trading down 18 cents at $1 in afternoon trade on the American Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Maju Samuel and Anil D'Silva)