The following is a summary of the Chemtrade Logistics Income Fund (CGIFF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Chemtrade Logistics reported a Q1 2024 revenue of $230.6 million in the Sulphur and Water Chemicals segment, a decrease of 12% YoY.
EBITDA for the SWC segment was $51.4 million, a decrease of 7% over last year.
Revenue for the Electrochemical segment for Q1 was $187.6 million, a decrease of 10% YoY and EBITDA declined 17% compared to Q1 2023.
The company's net debt to adjusted EBITDA ratio improved to 1.9x from 2.2x at the end of Q1 2023.
Chemtrade Logistics expects 2024 EBITDA to be at the higher end of guidance range of between $395 million and $435 million.
Business Progress:
Improvement in margins in the Water Chemicals segment due to increased selling prices.
Maintenance activity in sodium nitrite resulted in improvements beginning in Q1 2024.
Initiation of a normal course issuer bid to return capital to unitholders.
Chemtrade is considering retiring convertible debentures maturing next year and assessing potential acquisitions.
Plan to allocate $60 - $90 million to growth capital expenditures in 2024.
Slight reduction in netback per tonne but showing improvement over the year.
Focused on organic growth and strategic acquisitions with the addition of a specialty product line at the Augusta facility and proposed approval for a buyback of up to 10% of their float.
A JV related to a greenfield site is being considered, assessing demand to fill the proposed 100,000-ton capacity at Cairo.
More details: CHEMTRADE LOGISTICS INCOME FUND IR
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