Chemtrade Logistics Income Fund to Announce Fourth Quarter and Year End 2017 Results on February 13, 2018
Fund provides update that Q4 2017 EBITDA for SPPC and WSSC segments are expected to be lower than Q4 2016
TORONTO, January 12, 2018 — Chemtrade Logistics Income Fund (TSX: CHE.UN) will release its results for the three months and year ended December 31, 2017 on Tuesday, February 13, 2018 after close of markets.
The Fund expects 2017 fourth quarter aggregate EBITDA (a non-GAAP measure that is defined in the Fund’s management’s discussion and analysis) for its Water Solutions & Specialty Chemicals (WSSC) and Sulphur Products & Performance Chemicals (SPPC) segments to be approximately 20% lower than the fourth quarter of 2016. This is a change from the indications made in the third quarter that aggregate EBITDA from these segments should be similar to last year.
Mark Davis, President and Chief Executive Officer of Chemtrade, said, “Similar to our comments at the end of the third quarter, demand for our core products remains strong. We had expected additional strength in WSSC to offset some weakness in SPPC, but that strength failed to materialize. Although these estimates of the Fund’s fourth quarter earnings are subject to our year-end audit, we believe an update of the probable level of earnings is appropriate.”
Additionally, the Fund updated the status of its North Vancouver chlor- alkali plant. In November 2017, Chemtrade announced that the plant underwent an unplanned interruption that would last approximately two weeks and negatively impact EBITDA by approximately $7 million to $8 million, the majority of which would be realized in the fourth quarter of 2017. The outage at this plant was slightly longer than initially expected, but the financial impact was as anticipated. The plant is currently running well and is expected to do so until a planned outage in April 2018.
Caution Regarding Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements within the meaning of certain securities laws, including the Securities Act (Ontario). Forward-looking statements 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 statements in this news release include statements respecting certain future expectations about: fourth quarter EBITDA results for the SPPC and WSSC segments, the financial impact of the unplanned production interruption at the North Vancouver chlor-alkali plant and the expectation that the North Vancouver chlor-alkali plant will continue to run well. Forward-looking statements in this news release describe the expectations of the Fund 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, including without limitation the risks and uncertainties detailed under the “RISK FACTORS” section of the Fund’s latest Annual Information Form and the “RISKS AND UNCERTAINTIES” section of the Fund’s most recent Management’s Discussion & Analysis.
Although the Fund 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, the Fund has made assumptions regarding: there being no significant disruptions affecting the operations of the Fund and its subsidiaries, whether due to labour disruptions, supply disruptions, power disruptions, transportation disruptions, damage to equipment or otherwise; the ability of the Fund to obtain products, raw materials, equipment, transportation, services and supplies in a timely manner to carry out its activities and at prices consistent with current levels or in line with the Fund’s expectations; the timely receipt of required regulatory approvals; the cost of regulatory and environmental compliance being consistent with current levels or in line with the Fund’s expectations; the ability of the Fund to successfully access tax losses and tax attributes; the ability of the Fund to obtain financing on acceptable terms; currency, exchange and interest rates being consistent with current levels or in line with the Fund’s expectations; and global economic performance.
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 Chemtrade Logistics Income Fund with the securities regulatory authorities, available at www.sedar.com.
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For further information:
President & CEO
Tel: (416) 496-4176
Vice President, Finance & CFO
Tel: (416) 496-4177