Chemtrade Logistics Income Fund, Toronto, reported third-quarter adjusted EBITDA of C$142.1 million, up 3.7% from the year-ago $137.1 million. This moved nine-month adjusted EBITDA to $418 million versus the year-ago $326.6 million.
Chemtrade is raising full-year guidance, now expecting it to exceed $490 million, which will be the highest amount achieved in company history, handily beating last year’s record level by at least 13%. Prior guidance had been above $475 million. Year-ago actual was $430.9 million.
“The strong performance that we delivered in the third quarter, both financially and operationally, further builds on the solid track-record that we have established in recent years and positions us for a record year in 2023,” said Scott Rook, Chemtrade President and CEO.
“While these results reflect strength across a number of products in our diversified portfolio, they are really a testament to the ongoing focus and execution of the entire Chemtrade team,” Rook added. “Despite a decline in revenue attributable to lower sulfur and caustic soda prices, the commercial initiatives, along with a focus on operating performance, were pivotal in driving yet another quarter of growth in adjusted EBITDA and distributable cash.”
Despite the increased adjusted EBITDA, net earnings of $70.8 million were down 6% from the year-ago $75.3 million, mainly due to non-cash expenses resulting from an increase in the market value of convertible debentures.
Revenue of $483.5 million was off 7% from the year-ago $519.9 million, driven by lower prices for sulfur and caustic soda, which were partially offset by higher prices for water products, sodium chlorate, regen acid, and chlorine.