Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

Alternate Symbol(s): CGIFF | T.CHE.DB.F | T.CHE.DB.G | T.CHE.DB.H | T.CHE.UN

Chemicals Basic Materials

Chemtrade Logistics Income Fund is a Canada-based company that operates a diversified business providing industrial chemicals and services to customers in North America and around the world. The Company's segments include Sulphur and Water Chemicals (SWC), and Electrochemicals (EC). SWC segment markets, removes and/or produces merchant, Regen and sulphuric acid, sodium hydrosulphite, elemental sulphur, liquid sulphur dioxide, hydrogen sulphide, sodium bisulphite, and sulphides, and provides other processing services. This segment also manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate, and a number of specialty chemicals, including sodium nitrite. EC segment manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and HCl, largely for the pulp and paper, oil and gas and water treatment industries. These products are marketed primarily to North American and South American customers.

TSX:CHE.DB.E - Post by User

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > Dividend to profit ratio

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Comment by Whitecapson Nov 26, 2020 5:43pm

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Post# 31985811

RE:Dividend to profit ratio

Correct, it is not good. Chemtrade currently does not make a profit (it's profit for the most recent quarter was actually negative).

That being said, it is important to remember that profit does not equal cash flow. Chemtrades cash flow is positive, and for this reason they can pay out the distribution that they do. A company like Chemtrade has a high number of depreciable assets and thus they have high depreciation expense on their profit statement. But depreciation is a non-cash expense and so it doesn't affect their cashflow.

This is why Chemtrades managment always talks about EBITA as opposed to profit. It's up to you as an investor whether you believe EBITA is a good measure to use to evaluate a company or not.

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