Latest news with #Chemtrade
National Post
22-07-2025
- Business
- National Post
Chemtrade Logistics Income Fund Declares July 2025 Distribution
Article content TORONTO — Chemtrade Logistics Income Fund (TSX: today announced that it has declared a cash distribution of $0.0575 per unit for the month of July 2025 payable on August 29, 2025 to unitholders of record at the close of business on July 31, 2025. Article content Holders of units who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions of income by the Fund. Article content Article content Article content Article content Article content Article content Contacts Article content For further information: Article content Rohit Bhardwaj Article content Chief Financial Officer Article content Article content Article content
National Post
16-07-2025
- Business
- National Post
Chemtrade Logistics Income Fund to Announce Second Quarter 2025 Results on August 14, 2025
Article content TORONTO — Chemtrade Logistics Income Fund (TSX: will release its results for the three and six months ended June 30, 2025 on Thursday, August 14, 2025 after market close. Article content A conference call to review the results will be webcast live on Friday, August 15, 2025 at 10:00 a.m. To access the webcast click here. Article content Article content Article content Article content Article content Article content Contacts Article content For further information: Article content Rohit Bhardwaj Chief Financial Officer Tel: (416) 496-4177 Article content Article content
Yahoo
14-05-2025
- Business
- Yahoo
Chemtrade Logistics Income Fund (CGIFF) Q1 2025 Earnings Call Highlights: Strong Revenue and ...
Revenue Growth: Increased by 11.5% year over year. EBITDA Growth: Up 9.3% year over year. SWC Segment Revenue: Grew by 11.9% excluding foreign exchange impacts. SWC Segment EBITDA: Increased by 12.5% year over year, excluding foreign exchange impacts. EC Segment Revenue and EBITDA: Relatively flat compared to the prior year period, excluding foreign exchange impacts. MECU Netbacks: Increased by approximately $165 per unit year over year. Distributable Cash: Generated $62.1 million in Q1, or $0.53 per unit. Growth Capital Investment: $7.2 million invested in Q1, with a full-year plan of $40 million to $60 million. Monthly Distribution Increase: Raised by 5% to $0.0575 per month in January 2025. Unit Purchases: 3.9 million units purchased in Q1 under NCIB. Net Debt Ratio: Approximately 2 times at the end of Q1. Available Liquidity: $780 million at the end of Q1. Adjusted EBITDA Guidance: Raised to the higher end of $430 million to $460 million for 2025. New Acquisition: Purchased Thatcher Group's aluminum sulfate water treatment chemicals businesses for $30 million. Warning! GuruFocus has detected 2 Warning Signs with CGIFF. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Chemtrade Logistics Income Fund (CGIFF) reported a strong start to 2025 with a revenue increase of 11.5% year over year and EBITDA up 9.3%. The SWC segment was a significant driver of growth, with revenue and EBITDA increasing by 11.9% and 12.5% respectively, due to higher pricing and volumes. Chemtrade's capital allocation strategy is robust, with $62.1 million of distributable cash generated in Q1, supporting growth investments and unit holder returns. The company raised its monthly distribution by 5% in January 2025, reflecting sustained growth in earnings and cash flow. Chemtrade's Vision 2030 targets an average annual EBITDA growth of 5% to 10%, aiming for $550 million to $600 million by 2030, driven by organic growth and strategic acquisitions. Higher input costs in the SWC segment, particularly for water chemicals and sulfuric acid, posed challenges despite being managed effectively. The EC segment's revenue and EBITDA were relatively flat year over year, with lower chlorine volumes and revenues from Brazil impacting growth. Chemtrade faces uncertain macroeconomic conditions, making it challenging to forecast sales for the remainder of 2025. The company anticipates a collective EBITDA impact of roughly $5 million due to maintenance turnarounds at several sulfuric acid plants. Potential volatility in global trade and tariff structures could impact Chemtrade's operations, although the direct financial impact has been limited so far. Q: Can you characterize the current cycle position for Chemtrade's SWC and Electrochem segments, and is this a mid-cycle earnings period for Chemtrade? A: Scott Rook, President and CEO, explained that the SWC segment is considered mid-cycle, with future growth expected from organic opportunities like ultra-pure sulfuric acid. The EC segment varies by product; caustic soda is mid-cycle with potential upside, chlorine is near the top of the cycle, and hydrochloric acid is tied to fracking activity, making it harder to predict. Q: Regarding the Vision 2030 plan, is the organic growth primarily from the Casa Grande, Arizona project, and is M&A focused on water chemicals? A: Scott Rook clarified that the Vision 2030 plan does not include the Casa Grande project, which is on hold. Organic growth will come from existing projects like Cairo, Ohio, and other ultra-pure acid locations. M&A will focus on small to moderate acquisitions, primarily in water chemicals. Q: Why choose to spend $30 million on a five-times EBITDA acquisition instead of buying back stock at a lower multiple? A: Rohit Bhardwaj, CFO, stated that Chemtrade's capital allocation strategy includes growing the business, returning capital to unit holders, and maintaining balance sheet strength. The acquisition is strategic and synergistic, particularly in the water business, and they plan to continue with share buybacks as well. Q: Can you provide details on the water treatment chemical acquisition, its impact on guidance, and whether the deal has closed? A: Scott Rook confirmed the acquisition has not closed yet and is expected to close later in May. It is not factored into the upper end of the guidance. The acquisition involves buying a customer list without acquiring new facilities, allowing Chemtrade to service customers from existing operations. Q: What is the outlook for future tuck-in acquisitions, especially in the water treatment sector? A: Scott Rook mentioned that Chemtrade has a pipeline of potential projects and is cautiously evaluating them. While not targeting a specific number of acquisitions per year, they prioritize accretive deals and maintain a focus on share buybacks and organic growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
13-05-2025
- Business
- Business Wire
Chemtrade Announces Voting Results From Annual Meeting of Unitholders
TORONTO--(BUSINESS WIRE)--Chemtrade Logistics Income Fund (TSX: (the ' Fund ') today announced results for matters voted on at the Fund's annual meeting of unitholders held in Toronto on May 13, 2025. A total of 37,463,472 units, or 32.24% of the Fund's issued and outstanding units as at the record date, were voted by proxy in connection with the annual meeting. Election of Trustees On a vote by show of hands, the following nominees were elected as trustees of the Fund, for a term expiring at the conclusion of the next annual meeting of unitholders of the Fund or until their successors are elected or appointed. The following proxy votes from unitholders with respect to the election of the eight nominees are set out below: Nominees Units Voted For % For Units Voted Withheld % Withheld Douglas Muzyka 36,120,511 98.51% 545,643 1.49% Lucio Di Clemente 35,659,719 97.26% 1,006,435 2.74% Daniella Dimitrov 35,754,525 97.51% 911,629 2.49% Luc Doyon 35,852,756 97.78% 813,398 2.22% Gary Merasty 35,955,909 98.06% 710,245 1.94% Emily Moore 36,144,589 98.58% 521,565 1.42% Suzann Pennington 36,204,983 98.74% 461,171 1.26% Scott Rook 36,147,407 98.59% 518,747 1.41% Expand Appointment of Auditors On a vote by show of hands, KPMG LLP was reappointed as auditor of the Fund to hold office until the next annual meeting of unitholders of the Fund or until a successor is appointed, and the trustees of the Fund were authorized to fix the auditors' remuneration. The following proxy votes from unitholders with respect to the appointment of KPMG LLP as auditors of the Fund are set out below: Vote Regarding Approach to Executive Compensation ('Say on Pay') On a non-binding advisory vote by show of hands, unitholders approved by majority the Fund's approach to executive compensation disclosed in the Circular. The following proxy votes from unitholders with respect to the 'Say on Pay' vote are set out below: Trustee and Committee Changes On the day of the Meeting, Katherine Rethy retired as a Trustee. Douglas Muzyka, Chair of the Board, thanked Ms. Rethy for her valuable and thoughtful contributions, and decade of service. Suzann Pennington was appointed as a member of both the Human Capital and Compensation Committee and the Responsible Care Committee. About Chemtrade 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 suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
National Post
12-05-2025
- Business
- National Post
Chemtrade Logistics Income Fund Announces Financial Results for the First Quarter of 2025 and Raises Guidance for Adjusted EBITDA to Be at the Higher End of the Range of $430-$460 Million; Introduces Chemtrade Vision 2030 Strategic Roadmap
Article content TORONTO — Chemtrade Logistics Income Fund (TSX: ('Chemtrade' or the 'Fund') today announced results for the three-month period ended March 31, 2025. The financial statements and MD&A will be available on Chemtrade's website at and on SEDAR+ at Article content Article content Revenue of $466.3 million, an increase of $48.1 million or 11.5% year-over-year driven by higher selling prices for several key products and the weaker Canadian Dollar, which more than offset lower volumes of caustic soda and chlorine. Adjusted EBITDA (1) of $120.1 million, an increase of $10.1 million or 9.2% year-over-year. Excluding the impact of foreign exchange, Adjusted EBITDA was 3.3% higher than 2024, primarily owing to higher selling prices for several products partially offset by higher input costs. Net earnings of $49.1 million, an increase of $7.1 million year-over-year primarily owing to higher Adjusted EBITDA, favourable unrealized foreign exchange gains and lower tax expense partially offset by higher finance costs. Cash flows from operating activities of $11.6 million, an increase of $9.2 million or 382.4% year-over-year, mainly due to higher Adjusted EBITDA. Distributable cash after maintenance capital expenditures (1) of $62.1 million, an increase of $2.2 million or 3.6% year-over-year reflecting higher cash flow from operating activities, partially offset by higher lease payments, and higher Maintenance capital expenditures (1). Distributable cash after maintenance and capital expenditures per unit (1) increased by 3.8% to $0.53 per unit year-over-year. Uncertain macro-economic conditions make it particularly challenging to forecast results. We have taken this uncertainty into account and given our strong start to 2025 and our visibility on the balance of the year, we are raising our Adjusted EBITDA guidance to the higher end of the previously communicated range of $430.0 to $460.0 million. During the first quarter of 2025, Chemtrade increased its monthly distribution rate by approximately 5% to $0.0575 per unit or $0.690 per unit per year. Chemtrade's Payout ratio (1) for the first quarter of 2025 was 32%. During the first quarter of 2025, Chemtrade purchased approximately 3.9 million units as part of its normal course issuer bid (NCIB). Chemtrade is authorized to purchase approximately 11.7 million units under its current NCIB which expires in June 2025 and as of May 9 th, 2025, it has acquired 10.4 million units. Chemtrade intends to renew its NCIB, subject to approval from regulatory authorities. Chemtrade continues to maintain a strong balance sheet, with a Net debt to LTM Adjusted EBITDA (1) ratio of 1.98 at the end of the first quarter of 2025. During the first quarter of 2025, Chemtrade issued an additional $125.0 million aggregate principal amount of 6.375% Notes due August 28, 2029, resulting in an aggregate principal amount of $375.0 million outstanding on these Notes. Chemtrade is introducing Chemtrade Vision 2030, a strategic framework targeting strong total unitholder returns, supported by 5-10% annual growth in Adjusted EBITDA and Distributable cash after maintenance capital expenditures per unit, disciplined capital allocation, and a continued focus on high-return growth investments. Article content 1) Adjusted EBITDA is a Total of Segments measure, Distributable cash after maintenance capital expenditures is a non-IFRS measure and Net debt to LTM Adjusted EBITDA, Distributable cash after maintenance and capital expenditures per unit and Payout ratio are non-IFRS ratios. Maintenance capital expenditures is a Supplementary financial measure. Please see Non-IFRS and Other Financial Measures for more information. Article content Scott Rook, President and CEO of Chemtrade, commented on the first quarter 2025 results, 'We started 2025 on solid footing, building on our momentum to deliver another solid quarter. Our diverse product portfolio continues to prove its strength, and our team remains agile and resilient in response to the dynamic market conditions. Despite persistent macroeconomic and geopolitical volatility, we have not seen any material negative impacts on our business to date. While we are concerned with economic uncertainty, we are confident in our improved expectation that 2025 Adjusted EBITDA will be at the higher end of our previously communicated guidance range.' Article content 'Looking ahead we remain optimistic in the longer-term outlook for Chemtrade, as we continue to build upon the foundational improvements in our business and our strong growth track-record established in recent years. From 2021 to 2024, we grew Chemtrade's Adjusted EBITDA at a note-worthy 19% compounding growth rate and we believe we are well positioned to continue this growth,' Mr. Rook continued. 'While it's challenging to make long-term projections, given the high level of macro-economic uncertainty, we are sharing our Chemtrade Vision 2030 strategic roadmap which provides a framework for growing Adjusted EBITDA to between $550 million and $600 million by 2030 with a target to generate strong Total Unitholder Returns. Chemtrade Vision 2030 underscores our confidence in our core business, backed by balanced, thoughtful capital allocation and strategic, high return growth investments.' Article content 'Regardless of the broader market backdrop, we remain focused on executing our strategy with discipline. We remain well positioned to deliver on strategic value-generating opportunities in 2025 and beyond. We have a resilient and growing product portfolio, strong financial flexibility and exceptional team.' Mr. Rook concluded. Article content Revenue for the first quarter of 2025 was $466.3 million $48.1 million higher than revenue for the first quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the first quarter of 2025 compared with the first quarter of 2024 had a positive impact on consolidated revenue of $21.0 million. Excluding the impact of foreign exchange, revenue increased by $27.1 million or 6.5% year-over-year. This increase was primarily due to: (i) higher selling prices and volumes of water solutions products, merchant acid, and Regen acid in the Sulphur and Water Chemicals (SWC) segment; and (ii) higher selling prices for caustic soda, HCl, and sodium chlorate in the Electrochemicals (EC) segment. These factors were partially offset by lower sales volumes of caustic soda, lower sales volumes and selling prices for chlorine, and lower revenue in Brazil in the EC segment. Article content Adjusted EBITDA for the first quarter of 2025 was $120.1 million, which was $10.1 million higher than the first quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the first quarter of 2025 compared with the first quarter of 2024 had a positive impact on consolidated Adjusted EBITDA of $6.5 million. Excluding the impact of foreign exchange, consolidated Adjusted EBITDA increased by $3.6 million or 3.3% year-over-year. This increase was primarily due to: (i) higher selling prices and volumes of Regen acid and water solutions products in the SWC segment; and (ii) higher selling prices for caustic soda, HCl, and sodium chlorate in the EC segment. Partial offsets to the above positive factors included: (i) lower sales volumes of caustic soda, lower sales volumes and selling prices for chlorine, and lower revenue in Brazil in the EC segment; and (ii) higher corporate costs. Article content Distributable cash after maintenance capital expenditures for the first quarter of 2025 was $62.1 million or $0.53 per unit, compared with $59.9 million or $0.51 per unit in the first quarter of 2024. This increase was primarily due to the same factors that had a positive impact on Adjusted EBITDA, as noted above. Chemtrade's Payout ratio for the twelve months ended March 31, 2025 was 37%. Article content Chemtrade maintained a strong balance sheet through the first quarter of 2025. As of March 31, 2025, Chemtrade's Net debt was $949.8 million and its Net Debt to LTM Adjusted EBITDA ratio was 1.98. As of the end of the first quarter of 2025, Chemtrade also maintained ample financial liquidity with US$542.3 million undrawn on its credit facilities, in addition to $28.9 million of cash on hand. Article content Segmented Financial Summary of Q1 2025 Article content The SWC segment reported revenue of $271.0 million for the first quarter of 2025, compared to $230.6 million for the first quarter of 2024. Adjusted EBITDA in the SWC segment was $59.5 million for the first quarter of 2025, compared to $51.4 million for the first quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the first quarter of 2025 compared with the first quarter of 2024 had a positive impact on SWC revenue and SWC Adjusted EBITDA of $12.9 million and $1.7 million, respectively. Article content Excluding the impact of foreign exchange, as noted above, SWC revenue in the first quarter of 2025 increased by $27.5 million or 11.9% year-over-year. The increase in comparable SWC revenue was primarily due to higher selling prices and volumes of merchant acid, Regen acid and water solutions products. Excluding the impact of foreign exchange, as noted above, SWC Adjusted EBITDA in the first quarter of 2025 increased by $6.4 million or 12.5% year-over-year. The increase in comparable SWC Adjusted EBITDA was primarily due to higher selling prices and volumes of Regen acid and higher selling prices and volumes for water solutions products, which more than offset higher input costs. Higher input cost for merchant acid were offset by selling prices. Article content The EC segment reported revenue of $195.3 million for the first quarter of 2025, compared to $187.6 million for the first quarter of 2024. Adjusted EBITDA in the EC segment was $88.2 million for the first quarter of 2025, compared to $82.5 million for the first quarter of 2024. The weaker Canadian dollar relative to the U.S. dollar during the first quarter of 2025 compared with the first quarter of 2024 had a positive impact on EC revenue and EC Adjusted EBITDA of $8.1 million and $5.3 million, respectively. Article content Excluding the impact of foreign exchange, as noted above, EC revenue in the first quarter of 2025 was similar to 2024. The impact of higher selling prices for caustic soda, HCl, and chlorine on EC revenue was offset by lower sales volumes of caustic soda, lower sales volumes and selling prices for chlorine, and lower revenue in Brazil. MECU netbacks increased by approximately $165 year-over-year, due to caustic soda as higher netbacks for HCl offset lower netbacks for chlorine. Excluding the impact of foreign exchange, as noted above, EC Adjusted EBITDA for 2025 was similar to 2024. The factors that affected EC revenue also had an impact on EC's Adjusted EBITDA on a year-over-year basis. Article content Corporate costs for the first quarter of 2025 were $27.7 million, compared with $23.9 million in the first quarter of 2024. The increase in corporate costs was primarily due to $3.4 million of higher realized foreign exchange losses in 2025 and $1.6 million of expenses related to the Superior lawsuit, partially offset by $0.9 million of lower long-term incentive plan costs. Article content Uncertain macro-economic conditions make it particularly challenging to forecast results. We have taken this uncertainty into account and given our strong start to 2025 and our visibility on the balance of the year, we are raising our Adjusted EBITDA guidance to the higher end of the previously communicated range of $430.0 to $460.0 million. Based on our guidance assumptions, including the anticipated spending on Growth capital expenditures and capital allocation, Chemtrade's implied Payout ratio (1) for 2025 is approximately 45%. Article content Achieving the higher end this range would mark the third-highest annual Adjusted EBITDA in Chemtrade's history. This level of Adjusted EBITDA shows the significant step-change in Chemtrade's Adjusted EBITDA and cash flow generation compared to pre-pandemic levels, as it would be the fourth consecutive year at a higher level of earnings. Article content 2025 Guidance 2024 Actual Three Months ended Actual ($ million) March 31, 2025 March 31, 2024 Adjusted EBITDA (1) $430.0 – $460.0 $470.8 $120.1 $109.9 Maintenance capital expenditures (1) $100.0 – $120.0 $104.5 $17.1 $15.4 Growth capital expenditures (1) $40.0 – $60.0 $81.3 $7.2 $19.9 Lease payments $65.0 – $75.0 $65.4 $17.8 $14.6 Cash interest (1) $45.0 – $55.0 $45.7 $14.4 $11.0 Cash tax (1) $45.0 – $55.0 $42.1 $8.7 $9.0 (1) Adjusted EBITDA is a Total of Segments measure. Maintenance capital expenditures, Cash interest and Cash tax are supplementary financial measures. Growth capital expenditures is a non-IFRS financial measure. See Non-IFRS And Other Financial Measures. Article content Key Assumptions 2025 Assumptions 2024 A ctual 2023 A ctual Approximate North American MECU sales volumes 168,500 172,000 181,000 2025 realized MECU netback being higher than 2024 (per MECU) CAD $30 N/A N/A Average CMA (1) NE Asia caustic spot price index per tonne (2) US$450 US$385 US$455 Approximate North American production volumes of sodium chlorate (MTs) 254,500 270,000 283,000 USD to CAD average foreign exchange rate 1.380 1.370 1.349 Long term incentive plan costs (in $ millions) $12.0 – $18.0 $23.3 $17.3 (1) Chemical Market Analytics (CMA) by OPIS, A Dow Jones Company, formerly IHS Markit Base Chemical. (2) The average CMA NE Asia caustic spot price for 2025 and 2024 is the average spot price of the four quarters ending with the third quarter of that year as the majority of our pricing is based on a one quarter lag. Article content Chemtrade Vision 2030 Article content The high level of macro-economic uncertainty makes it challenging to make long term projections. Nonetheless, to support its longer-term growth vision, Chemtrade is announcing a roadmap aimed at delivering sustainable growth and enhanced value for unitholders – Chemtrade Vision 2030. The Chemtrade Vision 2030 provides insight into how Chemtrade's leadership team is strategically thinking about its future growth, underscoring the strength of its business and its ability to drive meaningful unitholder value in the years ahead. Article content Chemtrade Vision 2030 builds on Chemtrade's strong foundation and operational momentum, while outlining a strategy to deliver strong total unitholder returns . Central to this plan is Chemtrade's objective to grow Adjusted EBITDA and Distributable cash after maintenance capital expenditures per unit by an average of 5% – 10% annually through a combination of organic growth initiatives, continued investment in high-return projects – particularly in the water solutions and Ultrapure acid businesses – and disciplined execution of external growth opportunities. Article content To further enhance unitholder value on a per unit basis, Chemtrade also intends to reduce the number of units outstanding through additional unit purchases. At the same time, Chemtrade's monthly distribution will remain an important element of unitholder returns. As earnings and cash flow continue to grow, the opportunity exists for additional potential increases to this attractive monthly distribution. Article content Chemtrade Vision 2030 positions Chemtrade to generate between $550 million and $600 million in annual Adjusted EBITDA by 2030. While the path to this target may evolve based on new opportunities, Chemtrade's approach will remain disciplined and focused on maximizing long-term value creation. Chemtrade will continue to prioritize capital allocation with significant capital being returned to unitholders and toward the highest value-enhancing opportunities, whether through organic investments or strategic acquisitions. Chemtrade also remains committed to maintaining a prudent balance sheet, targeting to keep its key leverage ratio below 2.5 times, with flexibility to modestly exceed this threshold in the short-term for strategic opportunities, with a clear timeline to bringing leverage expeditiously back to target levels. Article content Update on Organic Growth Projects Article content Chemtrade remains focused on its long-term objective of delivering sustained earnings growth and generating value for investors. To accomplish this, Chemtrade has identified various organic growth initiatives. In 2025, Chemtrade plans to invest between $40.0 million and $60.0 million in growth capital expenditures, which includes expansions of water treatment chemicals, upgrades to ultrapure sulphuric acid production, and other organic growth projects. Article content Construction of the Cairo, Ohio ultrapure acid project is complete, and the project is in the startup process. Commercial ramp up is expected to begin towards the end of 2025. This will be one of the first ultrapure sulphuric acid plants in North America that is expected to meet the quality requirements for next generation semiconductor nodes. This project will further bolster Chemtrade's position as a leading North American supplier of ultrapure sulphuric acid to the semiconductor industry. Article content Update on External Growth Article content Subsequent to the end of the first quarter, on May 5, 2025 Chemtrade entered into an agreement with certain subsidiaries of Thatcher Group Inc. to purchase their aluminum sulphate water treatment chemicals businesses in Florida, New York, and California for USD $30.0 million, representing a multiple of roughly 5x expected Adjusted EBITDA. Commenting on the transaction Scott Rook said, 'We are pleased to announce this new addition to our water business. This transaction fits with our strategy to grow our water treatment chemicals business through incremental small investments that add more meaningfully to earnings over time.' Article content Distributions and Capital Allocation Update Article content During the first quarter of 2025, Chemtrade purchased approximately 3.9 million units as part of its normal course issuer bid (NCIB). Chemtrade is authorized to purchase approximately 11.7 million units under its current NCIB which expires in June 2025 and as of May 9 th, 2025, it has acquired 10.4 million units. Chemtrade intends to renew its NCIB, subject to approval from regulatory authorities. Purchases of units are effected through the facilities of the TSX and/or alternative Canadian trading systems and are made by means of open market transactions, or such other means as may be permitted by the TSX, including block purchases of units, at prevailing market rates. The timing and amount of any purchases are subject to management's discretion. Article content During January 2025, Chemtrade issued an additional $125.0 million aggregate principal amount of 6.375% Notes due August 28, 2029, resulting in an aggregate principal amount of $375.0 million outstanding on these Notes. The Fund incurred transaction costs of $2.5 million. The Fund used the net proceeds of the issuance to reduce indebtedness and for general corporate purposes. This issuance is consistent with Chemtrade's capital structure optimization with a reduced reliance on potentially dilutive financial instruments such as convertible debentures. Article content Rohit Bhardwaj, CFO of Chemtrade, commented on Chemtrade's capital allocation, 'Our capital allocation strategy remains firmly grounded in financial discipline and a commitment to long-term value creation for our unitholders. We continue to strike a thoughtful balance between returning capital to unitholders and investing in strategic growth opportunities, while preserving the financial flexibility needed to support our evolving priorities. We remain focused on deploying capital into high-return growth initiatives, particularly within our water solutions and Ultrapure acid platforms, leveraging internally-generated cash flow and available credit to fund these investments. At the same time, we are committed to delivering steady capital returns through a combination of monthly distributions and unit repurchases under our NCIB. We maintain a strong and resilient balance sheet, supporting our ability to weather potential volatility while ensuring that Chemtrade has the flexibility to pursue additional attractive, value-accretive opportunities as they arise. Looking ahead, we will continue to take a disciplined approach to capital deployment, prioritizing opportunities that drive sustainable earnings growth and support long-term unitholder value.' Article content 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 suppliers of sulphuric acid, spent acid processing services, inorganic coagulants for water treatment, sodium chlorate, sodium nitrite and sodium hydrosulphite. Chemtrade is also a leading producer of high purity sulphuric acid for the semiconductor industry in North America. Chemtrade is a leading regional supplier of sulphur, chlor-alkali products, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams. Article content Non-IFRS financial measures are financial measures disclosed by an entity that (a) depict historical or expected future financial performance, financial position or cash flow of an entity, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the entity, (c) are not disclosed in the financial statements of the entity and (d) are not a ratio, fraction, percentage or similar representation. Non-IFRS ratios are financial measures disclosed by an entity that are in the form of a ratio, fraction, percentage, or similar representation that has a non-IFRS financial measure as one or more of its components, and that are not disclosed in the financial statements of the entity. Article content These non-IFRS financial measures and non-IFRS ratios are not standardized financial measures under IFRS and, therefore, are unlikely to be comparable to similar financial measures presented by other entities. Management believes these non-IFRS financial measures and non-IFRS ratios provide transparent and useful supplemental information to help investors evaluate Chemtrade's financial performance, financial condition and liquidity using the same measures as management. These non-IFRS financial measures and non-IFRS ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Article content The following section outlines Chemtrade's non-IFRS financial measures and non-IFRS ratios, their compositions, and why management uses each measure. It includes reconciliations to the most directly comparable IFRS measures. Except as otherwise described herein, Chemtrade's non-IFRS financial measures and non-IFRS ratios are calculated on a consistent basis from period to period and are adjusted for specific items in each period, as applicable. Article content Definition: Distributable cash after maintenance capital expenditures is calculated as cash flow from operating activities less lease payments net of sub-lease receipts, maintenance capital expenditures incurred, including unpaid amounts, and adjusting for cash interest and current taxes, and before decreases or increases in working capital. Article content Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities. Article content Definition: Distributable cash after maintenance capital expenditures per unit is calculated as distributable cash after maintenance capital expenditures divided by the weighted average number of units outstanding. Article content Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's cash flows including the amount of cash available for distribution to Unitholders, repayment of debt and other investing activities. Article content Net debt Article content Most directly comparable IFRS financial measure: Total long-term debt, Debentures, lease liabilities, and long-term lease liabilities, less cash and cash equivalents. Article content Definition: Net debt is calculated as the total of long-term debt, the principal value of Debentures, lease liabilities and long-term lease liabilities, less cash and cash equivalents. Article content Why we use the measure and why is it useful to investors: It provides useful information related to Chemtrade's aggregate debt balances. Article content ($'000) As of March 31, 2025 As of March 31, 2024 Long-term debt (1) $438,741 $322,468 Add (Less): Debentures (1) 340,000 425,527 Long-term lease liabilities 142,324 140,957 Lease liabilities (2) 57,627 52,274 Cash and cash equivalents (28,881) (27,543) Net debt $949,811 $913,683 (1) Principal amount outstanding. (2) Presented as current liabilities in the Consolidated Statements of Financial Position. Article content Why we use the measure and why it is useful to investors: It provides useful information related to the capital spending and investments intended to grow earnings. Article content Total of segments measures Article content Total of segments measures are financial measures disclosed by an entity that (a) are a subtotal of two or more reportable segments, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity. Article content The following section provides an explanation of the composition of the Total of segments measures. Article content Three months ended Twelve months ended ($'000, except per unit metrics and ratios) March 31, 2025 March 31, 2024 March 31, 2025 December 31, 2024 Net earnings $49,069 $41,955 $134,022 $126,908 Add (less): Depreciation and amortization 53,483 44,890 197,138 188,545 Net finance costs 10,526 5,642 77,444 72,560 Income tax expense 11,674 12,244 43,352 43,922 Impairment of joint venture – – 3,834 3,834 Change in environmental and decommissioning liability 1,303 (730) 1,103 (930) Net loss (gain) on disposal and write-down of PPE (15) 711 7,776 8,502 (Gain) loss on disposal of assets – – – Unrealized foreign exchange loss (gain) (5,983) 5,222 16,246 27,451 Adjusted EBITDA $120,057 $109,934 $480,915 $470,792 Article content Capital management measures Article content Capital management measures are financial measures disclosed by an entity that (a) are intended to enable an individual to evaluate an entity's objectives, policies and processes for managing the entity's capital, (b) are not a component of a line item disclosed in the primary financial statements of the entity, (c) are disclosed in the notes of the financial statements of the entity, and (d) are not disclosed in the primary financial statements of the entity. Article content Why we use the measure and why it is useful to investors: It provides useful information related to Chemtrade's debt leverage and Chemtrade's ability to service debt. Chemtrade monitors Net debt to LTM Adjusted EBITDA as a part of liquidity management to sustain future investment in the growth of the business and make decisions about capital. Article content Supplementary financial measures are financial measures disclosed by an entity that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position, or cash flow of an entity, (b) are not disclosed in the financial statements of the entity, (c) are not non-IFRS financial measures, and (d) are not non-IFRS ratios. Article content The following section provides an explanation of the composition of those Supplementary financial measures. Article content Represents capital expenditures that are required to sustain operations at existing levels and include major repairs and maintenance and plant turnarounds. These include unpaid amounts at each reporting period. Article content Represents capital expenditures, including unpaid amounts, that are (a) pre-identified or pre-funded, usually as part of a significant acquisition and related financing; (b) considered to expand the capacity of Chemtrade's operations; (c) significant environmental capital expenditures that are considered to be non-recurring; or (d) capital expenditures to be reimbursed by a third party. Article content Cash interest Article content Cash tax Article content Represents current income tax expense. Article content 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: our expectation that 2025 Adjusted EBITDA guidance will be at the higher end of the range of $430 million to $460 million; our intention to renew our NCIB; our belief in an optimistic longer-term outlook for Chemtrade; our ability to build upon the foundational improvements in our business and recent strong growth track record; our belief we are well-positioned to continue growth and to deliver on strategic value-generating opportunities in 2025 and beyond; the expected implied Payout ratio of approximately 45%; the expected stated range of maintenance capital expenditures and growth capital expenditures, lease payments, cash interest and cash tax; our ability to achieve the objectives of Chemtrade Vision 2030, namely our ability to deliver strong total unitholder returns; our ability to achieve 5-10% average annual growth in Adjusted EBITDA and distributable cash after maintenance capital expenditures per unit and the means to achieve such growth (organic growth initiatives, investment in high-return projects, and external growth opportunities); our intention to reduce the number of units outstanding through additional unit repurchases; our expectation of potential distribution increases; our ability to generate between $550 million and $600 million in annual Adjusted EBITDA and the timeline in which to do so; our intention to follow a disciplined approach focused on maximizing long-term value creation; our intention to continue to prioritize capital allocation, return significant capital to unitholders and toward organic investments or strategic acquisitions; our intention and ability to maintain our key leverage ratio below 2.5 times and to exceed such threshold as required for short-term strategic opportunities and to expeditiously return to target levels; our intention to invest between $40.0 million and $60.0 million in growth capital expenditures in 2025 and its allocation among water treatment chemicals expansions, ultrapure sulphuric acid production upgrades, and other organic growth projects; the expected timing of commercial ramp-up of the Cairo project; our ability to be one of the first North American UPA plants to meet the quality requirements of the next generation semiconductor nodes; our ability to retain our position as a leading North American ultrapure sulphuric acid supplier to the semiconductor industry; our ability to close the transaction with Thatcher Group Inc.; our ability to continue to balance returning capital to unitholders and investing in growth opportunities and preserving financial flexibility to support evolving priorities; and our intention to continue to take a disciplined approach to capital deployment and how we do so. 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. Article content 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: the stated North American MECU sales volumes and sodium chlorate production volumes; the 2025 MECU netback being lower than 2024 by the stated amount; the stated average CMA NE Asia caustic spot price index; the stated U.S. dollar average foreign exchange rate; and the stated range of LTIP costs. 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. Article content Article content Article content Article content Article content Contacts Article content For further information: Article content Rohit Bhardwaj Chief Financial Officer Tel: (416) 496-4177 Article content Article content Article content
