Q3 2024 Covestro AG Earnings Call Transcript
Key Points
- Covestro AG (CVVTF) reported a strong volume growth of 6.1% year on year, driven by improved demand and reliability.
- The company achieved an EBITDA of EUR287 million, which is within their guidance range of EUR250 million to EUR350 million.
- Covestro AG (CVVTF) turned its free operating cash flow positive with EUR112 million in Q3 2024.
- Significant progress was made towards climate neutrality, including a new catalyst installation in China reducing CO2 emissions by 60,000 tons annually.
- The company increased its share of renewable electricity through a PPA with bp, raising its renewable electricity share in Spain from 10% to 30%.
- Sales were affected by lower prices, resulting in a total of EUR3.6 billion, despite volume growth.
- The pricing delta negatively impacted EBITDA by EUR126 million due to an unfavorable supply-demand ratio.
- The automotive and construction industries showed concerning trends, with automotive expected to remain flattish and construction projected to decline.
- Covestro AG (CVVTF) experienced a negative free operating cash flow of minus EUR164 million for the first nine months of 2024.
- The company's net debt increased by EUR159 million compared to the end of 2023, partly due to seasonally negative cash flow and bonus payouts.
Welcome to the Covestro earnings call on the Q3 results. The company today is represented by Christian Baier, CFO. You have to excuse the absence of our CEO, Markus Steilemann; he currently attends an economic summit convened by the German Chancellor, Olaf Scholz, in Berlin. Markus is attending this summit in a double function as the CEO of Covestro and also as a President of the German Chemical Association.
(Event Instructions). You will find the quarterly statement and the earnings call presentation on our IR website. I assume you have read the safe harbor statement.
With that, I would now like to turn the conference over to Christian.
Thank you, Ronald, and hello, and a warm welcome to our third-quarter call. Before coming to the business of the last quarter, let me update you on the status of the announced transaction with ADNOC. The signing of the investment agreement on October 1 marked the
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