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

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

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 > Desjardins Research Report

<< Previous

Bullboard Posts

Next >>

Post by anon314on Feb 24, 2021 7:54am

235 Views

Post# 32644801

Desjardins Research Report

From David Newman and Chi Le,

Rating: Buy
Risk: Above-average
Target: C$9.00

CHE.UN C$7.19, TSX

4Q first look—a beat on core operations, with chemical upside in 2021

The Desjardins Takeaway: Neutral

4Q adjusted EBITDA of C$44m was lower than our C$47m (consensus C$49m). The small miss was mostly driven by corporate costs of C$26m (vs our C$19m) due to increases of C$7.3m in LTIP (higher share price) and C$2.6m in other incentive compensation, and C$3m related to the retirement of former CEO Mark Davis (new CEO Scott Rook takes over on March 1), partially offset by C$2.6m in CEWS. Excluding corporate, CHE’s core operations generated EBITDA of C$70m, a beat vs our C$66m. See our preview.

In 2021, CHE anticipates higher sales volumes vs a year ago. With emerging green shoots in merchant acid, caustic soda, HCl and regen acid, stable water demand, easy comps starting in 2Q21 and a potential recovery post-pandemic, we are constructive on the outlook. At the end of 2020, CHE had ~C$300m undrawn on its credit facility and cash of C$12.5m.

<< Previous

Bullboard Posts

Next >>

NervGen: Are amazing human trial results leaking out?