Q2 2024 Chemtrade Logistics Income Fund Earnings Call Transcript
Key Points
- Chemtrade Logistics Income Fund (CGIFF) exceeded internal expectations for Q2 2024, reflecting strong organization-wide execution.
- The company announced an increase in its 2024 guidance, projecting EBITDA between $430 million and $460 million.
- The sulfur and water chemicals segment (SWC) saw a year-over-year EBITDA increase of $5 million or 7%, driven by higher selling prices and improved margins.
- Chemtrade Logistics Income Fund (CGIFF) ended the quarter in a strong financial position, with a net debt to EBITDA ratio of approximately two times.
- The company continues to invest in strategic high-return growth opportunities, including $17.7 million of growth capital in Q2 2024.
- The North Vancouver chlor-alkali facility's biannual maintenance turnaround negatively impacted revenue by $10.5 million and EBITDA by $17.9 million.
- Q2 2023 was an all-time record quarter for EBITDA, making year-over-year comparisons challenging.
- Corporate costs increased by $5.9 million year-over-year to $28.2 million, driven by higher incentive plan costs, FX losses, and legal expenses.
- The electro chemicals segment (EC) saw a year-over-year EBITDA decrease of $10.3 million or 11%, primarily due to significantly lower realized caustic soda prices.
- The cessation of sodium chlorate production at the Prince George facility will result in some cost-related impacts in Q3 2024.
Thank you, operator. Good morning, and thank you for attending Chemtrade logistics Income Funds Earnings Conference Call for the Second Quarter of 2024. With me on today's call is Scott Rook, President and CEO of TIM trade. I will begin this morning's call by providing a brief overview of the second quarter results we published yesterday as well as the announced increase to our 2024 guidance.
I will then hand the call over to Scott, who will provide an update on the outlook for our key products, organic growth and our organic growth projects. Following our prepared remarks, we will open the line for analyst Q&A.
This call has an accompanying slide deck, which is available on our website, content, logistics.com. Before proceeding, please note that today's call will contain certain forward-looking statements that are based on current expectations and are subject to a number of risks and uncertainties.
Actual results may differ materially from expectations. Further information, identifying risks, uncertainties
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