highlights (Lots to plow through) Highlights:
-- Cash Operating Profit was $101.5 million for the year ended December 31, 2013, compared to $134.3 million for the year ended December 31, 2012. Cash Operating Profit was $24.6 million for the fourth quarter of 2013. Distributable Cash for 2013 was $54.1 million ($0.38 per common share), resulting in a Cash Payout Ratio of 120%. -- Canexus announced the start-up of the initial phase of the pipeline connected unit train expansion at the Corporation's North American Terminal Operations ("NATO" or "Bruderheim Terminal") at Bruderheim, Alberta in mid-December. Start-up and commissioning activities, complicated by severe winter weather, have continued through to the end of February, limiting unit train shipments to date. The Corporation anticipates loading approximately 12 to 15 unit trains per month for each of the next few months and then plans to take a 60- to 90-day period of downtime, currently targeted to commence in June, to complete remaining work, which will further increase unit train loading capacity at the Bruderheim Terminal and connect it to the Cold Lake pipeline system. The efficiencies of taking an uninterrupted period should allow Canexus to meet the revised total estimated cost of this project announced on January 14, 2014. The planned downtime will not affect truck-to-rail operations at NATO. Currently, 60% to 70% of planned unit train activity is contracted for multiple years. The Corporation expects to have unit train operations fully contracted in the near term. The financial contribution of the NATO unit train facility in 2014 will depend upon the timing of ramp-up of the expanded facility as it becomes fully operational. -- The diluted bitumen and crude oil ("DBCO") truck-to-rail transload ("manifest") capacity expansion at NATO was completed in the third quarter of 2013. Canexus exited December 31st at a transload rate of approximately 23,800 bbls/day and averaged 16,200 bbls/day in the fourth quarter. Transload volumes will be lower in Q1/14 than the 2013 exit rate, mainly due to challenging winter weather conditions. Our highest daily transload volume to date was established on February 21, 2014, at just over 27,100 bbls/day. -- Canexus' chlor-alkali results continued to be adversely affected by weakness in caustic soda and hydrochloric acid ("HCl") markets in the fourth quarter and these conditions seem likely to persist in 2014. Caustic soda pricing improved about 4% on January 1st, 2014. The weakness in the Canadian dollar should be supportive of caustic soda prices, as competing product imported from Asia is priced in US dollars. HCl demand for the first two months of 2014 has met expectations; however, pricing levels in the oil and gas segment in Western Canada are lower by about 10%. A number of exploration companies are currently active in the Swan Hills region, where larger quantities of HCl are typically consumed. Also, the large volume of HCl inventory that was imported into Western Canada in totes in late 2012 and early 2013 is now believed to have been depleted, reducing supply. -- Canexus' North American sodium chlorate business had a solid fourth quarter and full year 2013. Pricing concessions made late in 2013 on contract renewals had a modest impact on fourth quarter performance. The significant strengthening of the US dollar relative to the Canadian dollar should largely offset this in 2014, as roughly two-thirds of our sales take place in the United States. North American sodium chlorate operating rates are expected to remain in the low 90% range for 2014, assuming there is no capacity rationalization in the industry. Our low-cost Brandon plant is expected to run at capacity. The Corporation continues to analyse de-bottleneck opportunities at its Brandon plant for decision in 2014 on potential implementation. -- Canexus' Brazil operations continue to be very stable with our primary customer running at high rates. Performance in 2013 was solid. Merchant sales of sodium chlorate were lower in Q4/13 due to competitor supply intended for merchant customers becoming available. -- On February 5, 2014, Canexus closed a $150 million common share financing, the net proceeds from which will be used to fund the remaining planned capital expenditures at NATO including expenditures incurred but not yet paid. -- The Board of Directors declared the regular quarterly dividend of $0.1368 per common share payable April 15, 2014 to shareholders of record on March 31, 2014.