Toronto-based Chemtrade Logistics Income Fund reported fourth-quarter net earnings of C$11.7 million on revenue of $422 million, up from the year-ago negative $11.7 million on revenue of $456.7 million, respectively. Adjusted EBITDA was $84.6 million, down from $104.3 million.
Full-year net earnings climbed 128%, to $249.3 million on revenue of $1.85 billion compared to 2022’s $109.1 million and $1.81 billion, respectively. Adjusted EBITDA was $502.6 million, up from $430.9 million.
“The fourth quarter represented a successful end to what was another record year for Chemtrade, one in which we set a new high watermark for adjusted EBITDA,” said Chemtrade President and CEO Scott Rook. “More than anything else, these strong results are reflective of the continued strong execution across Chemtrade’s operations, from the plant floor through all levels to our senior leadership.”
Rook said Chemtrade expects another solid year financially in 2024 and reaffirmed the company’s previously issued 2024 adjusted EBITDA guidance of $395-$435 million. “While adjusted EBITDA is expected to be below the record level we achieved in 2023, achieving the mid-point of guidance of $415.0 million would represent the third highest adjusted EBITDA in our history,” he said.
Rook said Chemtrade expects to complete and commission the expansion and upgrade of its Cairo, Ohio, ultrapure sulfuric acid (UPA) facility this year. “This plant will be the first in North America to meet the quality requirements for next generation semiconductor nodes, furthering Chemtrade’s position as the top North American supplier of ultrapure acid to the semiconductor industry,” he said.
“We also expect to make additional progress on other high-return organic growth projects during the year, including in our water solutions business, while remaining disciplined on balanced capital allocation and maintaining a strong balance sheet.,” Rook added. Total cost for the Cairo project was put at $60-$65 million.
Another possible UPA project, one with joint venture partner KPCT Advanced Chemicals and located in Casa Grande, Ariz., remains on hold until it can be assured the project generates an acceptable level of return. Chemtrade said discussions with customers are ongoing and the jv has applied for CHIPS Act funding.