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

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

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.

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Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures

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Post by incomedreamer11on May 10, 2022 8:43am

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Post# 34669763

Scotia comments on result

Solid Q1 Beat; '22 Guidance Raised; Spring-Cleaning of Portfolio Looks Good

OUR TAKE: Positive. We think the market should reward CHE.un on its strong 40% Q1 EBITDA beat ($108M vs. $76M), a 13% hike to ‘22 guidance ($315M vs. $280M mid-points), as well as some proactive spring-cleaning of the portfolio. See Exhibit 1 for details. While we maintain a Sector Perform on the stock, we’re warming up to the story.

POSITIVES

CHE.un redeemed all of its outstanding 2016 5% sub-debt notes for $147M.
The company sold an idled acid plant in Augusta, GA for $13M.
CHE.un announced a sale-and-leaseback transaction at its North Van site.
The Beauharnois, QC plant that produces 40K mt of sodium chlorate will be closed due to ongoing softness in demand for office paper. The volume from the facility will be absorbed by the MB and BC facilities.
Regen demand is back to pre-pandemic levels.
SWC. EBITDA of $63M beat the Street’s $47M due to better-than-expected selling prices of merchant acid, as well as water solutions and sulphur products. The overall margin of 27% was better than the 24% forecast.
EC. All three of CHE.un’s chlor-alkali products (caustic, chlorine, HCl) saw strong realized price gains, which was partially offset by lower sales volume of sodium chlorate.

NEGATIVES