Bullboard - Stock Discussion Forum 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... see more

Add To Watchlist

TSX:CHE.DB.E - Post Discussion

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > first comments from Scotia

View:

Post by incomedreamer11 on May 11, 2021 11:31am

first comments from Scotia

OUR TAKE: Negative vs. the Street.
While the stock should underperform near-term on the meaningful EBITDA miss, investor sentiment is beginning to turn more positive as early signs of eventual green shoots are emerging for Chemtrade.

EBITDA of $55M fell 16% short of the Street's $66M, largely due to the impact of COVID on SPPC, as well as the winter storm on the WSSC segment. Full note to follow the 8:30am call.

POSITIVE SURPRISES • None.

NEGATIVE SURPRISES • SPPC. Travel restrictions continue to curb gasoline demand, and therefore regen acid. Reduced economic activity resulted in poor demand for merchant acid. •
WSSC. Severe winter weather disrupted operations and CHE.un customers. The outlook for the segment warned of near-term margin compression, as it takes time to pass on higher raws to customers. •
EC. Lower sales volume of sodium chlorate, 14% decline in the price of caustic, and a 30% drop in the price of HCl. • $3M negative impact from Winter Storm Uri + another $3M negative impact from a strengthening C$.

Also, corporate costs were $22M vs. $12M y/y, largely due to LTIPs + the retirement of the former CEO.

392