TSX:CHE.DB.E - Post by User
Post by
incomedreamer11on Nov 11, 2021 10:25am
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Post# 34114669
Scotia comments on results
Scotia comments on resultsFinally Turning the Corner
OUR TAKE: Positive.
CHE.un generated $67.3M in Q3 EBITDA, which was slight beat on the Street's $65M. Overall quite good results, although higher raw materials and energy cost continues to pressure margins in the water segment. No change to '21 EBITDA guidance of $245M to $260M vs. the Street at $256M. Model adjustments to follow the call.
POSITIVE SURPRISES •
SPPC. EBITDA and margins improved on higher selling prices for sulphur products, as well as for merchant and regen acid. Results would have been slightly higher had Vale not experienced a work stoppage. Run-rate EBITDA for the quarter should have been closer to $35M. •
EC. Improved sales volume + higher chlor-alkali prices more than offset C$ strength and lower selling prices for sodium chlorate. •
CHE closed the sale of its specialty chem business for US$155M, using the proceeds to pay down bank debt, and with an overall improvement to leverage of 0.7x. •
CHE will record a net benefit of $17.6M in Q4 due to the settlement of a lawsuit relating to Canexus. • The board approved a 60% capacity expansion at its Cairo, OH, ultrapure sulphuric acid facility.
NEGATIVE SURPRISES • WSSC. EBITDA declined y/y due to significant increases in the cost of raw materials, as well as a stronger C$.