Chemtrade Increases 2023 Adjusted EBITDA Guidance by $25 Million and Now Expects Adjusted EBITDA to Exceed $475 Million
TORONTO, Ontario, October 10, 2023– Chemtrade Logistics Income Fund (“Chemtrade”)(TSX: CHE.UN) today announced revised Adjusted EBITDA guidance for 2023.
Based on a preliminary view of the third quarter of 2023 and estimates for the fourth quarter of 2023, Chemtrade is raising its Adjusted EBITDA guidance for 2023 by $25 million and now expects Adjusted EBITDA to exceed $475 million. This is well above 2022’s record level Adjusted EBITDA of $430.9 million. This revised outlook reflects the market conditions for the second half of 2023 that are more favourable than previously anticipated.
Chemtrade operates a diversified business providing industrial chemicals and services to customers in North America and around the world. Chemtrade is one of North America’s largest producers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is also the largest supplier of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, liquid sulphur dioxide, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information within the meaning of applicable securities laws, including the Securities Act (Ontario). Forward-looking information can be generally identified by the use of words such as “anticipate”, “continue”, “estimate”, “expect”, “expected”, “intend”, “may”, “will”, “project”, “plan”, “should”, “believe” and similar expressions. Specifically, forward-looking information in this news release include statements respecting certain future expectations about: the quantum of, and Chemtrade’s ability to achieve, its expected Adjusted EBITDA. Forward-looking statements in this news release describe the expectations of Chemtrade and its subsidiaries as of the date hereof.
These statements are based on assumptions and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements for a variety of reasons. Although Chemtrade believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking statements, and they should not be unduly relied upon. With respect to the forward-looking statements contained in this news release, Chemtrade has made assumptions regarding: there being no significant disruptions affecting the operations of Chemtrade and its subsidiaries, and market conditions remaining as expected.
Actual events and results can be substantially different from what is expected or implied by the forward-looking information as a result of risks, uncertainties and other factors, including without limitation, the factors detailed under the “Risk Factors” section of the Fund’s latest Annual Information Form and the “Risks and Uncertainties” sections of the Fund’s most recent Management’s Discussion and Analysis.
All forward-looking information in this release speaks as of the date of this press release. Except as required by law, the Fund does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
Further information can be found in the disclosure documents filed by the Fund with the securities regulatory authorities, available at www.sedarplus.ca.
* * * *
For further information:
Chief Financial Officer
Tel: (416) 496-4177
Corporate Development Manager
Tel: (973) 515-1831