CINR - Earnings call transcript Q2 2019

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Operator

Welcome to Ciner Resources' Second Quarter 2019 Earnings Conference Call and Webcast. Hosting the call today for Ciner Resources is Mr. Ogüz Erkan, Chief Executive Officer. He is joined by Mr. Ed Freydel, VP of Finance.

recorded. being is call Today's At this listen-only for placed a have questions all and the participates mode, open the been floor following in presentation. time, will your be [Operator Instructions]

to to the pleasure my now is floor It over Ed Freydel. turn

may sir. You begin,

Ed Freydel

will additional thank financials, from Thank for the to on will the close XXXX Ogüz quarter, joining quarter and will CEO, provide you Erkan, you, I second morning and our some our details discuss with us our additional Good operational earnings. Stephanie. our Ogüz related growth and to discuss some plans. call then highlights commentary performance

We will your then take questions.

those results I begin, by a for of constitute more financial in measures. we pro and comments Certain statements. are in these included therefore are release. reasons be remind earnings today's number measures press discussed of discussed financial company's which filings. financial considered would Before the you the forward-looking that differ this the call suggested like found in to may forma, Actual non-GAAP comments detail call non-GAAP conference results our are in measures can from SEC during materially Reconciliations

I would CEO, Erkan. of introduce the with has over years. our like new for XX Ogüz last member Board President the and been and a for Resources been has to Ogüz Ciner the that, years, With three Ciner Group

Ogüz Erkan

everyone. good to Resources' XXXX Ciner morning and Welcome Thanks, call. Ed, second quarter earnings

with our milestone another business, The levels for marked production safe second of quarter record XXX,XXX tons.

product with soda production financial led reliability our our emphasis results pricing day-to-day renewed the now combined to the and of million achieved last million highlighting million favorable of record months. strong XX XXXX, first-half for These through $XX.X of the in the XXXX on turn, We distributable EBITDA three in market first-half last $XX cash $XX.X improved quarters, generating and was over flow $XXX million year-to-date, months. consecutive In XX have ash in assets. the of levels

as Our extended when from quarter a an attitude in a low was maintenance. diligent commitment for turnaround performance second have continued that received proactive improvement tons over the from remain over We refreshing year in outage X.X spurred a our have said buy-in tremendous historical which as All in initiatives, we to employees. experienced plant. more reliability, an produced but months, preventative towards is XX the our ago plant record all-time well we resulted million the the which our production, last

market a up evidencing strategy second sales of pricing the in pricing was international strength successful in margins. also was up and almost X% driver overall X.X%, year-over-year, improving been XXXX was has mix our Continued results. further in our optimization Domestic quarter our how

led a back of in has overall internationally, increasing reminder, net sustained reduce our domestic to thus As higher growth us margin favor international customers sales lower average price. to sales pricing sales

Turning capital change our general with great and to our projects, modernization new progress our house we facilities. of making worker are building

million on self-generate we also of savings realize to to us and plan provide up the efficiency the forward. spend savings benefits year, energy $XX to which one-third our capital new us, equipment electricity allow our $X requirement facility With end and XXXX of cogen running behind cost this expect and and in by have from ground cogeneration the broke it to of will We of annually. most current and on

Not upgrading new tons with only approximately X.X capacity the such multiple project to capacity overall at an annual will us anticipated as production million XXXX announced to for decline planning expansion DECA will production major of include the We allow increase we believe offset depletion related which and technology. of ton, also be benefits are The in structure. and reserves. design will designed unit to also our will production XX%, cost new cost per begun efficiency, we our transformative overall to the our utilize preliminary one capacity operational and of production million a achieve will previously our lower project, by have and tons, engineering existing be our business. reliability, in-house The

project. with done of include and think the be and upgrades electrical, irrespective an Some our these of well to I operations these Many team's as from would to tailing our more logistical, benefit have of improvement growth by standpoint. on layout continuous our as an needed lab, investments office plans practical operations. of focus a expansion space, proud overall to and our to the addition efficient improvements am reconfiguring And of be ability to the strategically our infrastructure, new site combining

Now, I discuss financial to Ed turn more quarter results our who the for will call over the in detail. will

Ed Freydel

financial key Ogüz. some and Resources. in performance, I'll Ciner use drivers to our quarter, the everyone your you, And evaluate Thank around thanks joining Today, our some major metrics for our second quarter call and interest from continued for detail business. we the provide

begin, tons. To increased volume of tons the X% to and to XX% QX compared to increased year-to-date XXX,XXX in sold total XXXX, quarter X.XX million

extended performance steady really scheduled figures, outage. our unplanned shown downtime especially operating year in production year the in we to as has which Our experienced during quarter prior compared this an our

XXX,XXX quarter. year, compared approximately XXXX, in has pricing period. price in X% net higher period XXX,XXX year-to-date. sales increasing And our increased the as by been each total XX,XXX sales sold back by meaningful, Meanwhile, and markets. results decreased our and increased to Domestic favor have six-month continue approximately quarter-over-quarter we X% to tons while also of XXX,XXX by compared international decreased year-to-date of by volume to with QX The last by as mix the approximately optimize domestic second tons in sales almost by tons volume

quarter and QX of in similar a XXXX. to XX% in to year-to-date of figures seen the international up can these sales by pricing, XX% of As million were trend in XX% increasing XX% million compared second QX international and to to up sales mix XX% domestic the was sales were of XXXX. $XXX by $XX revenue million. A decreasing sales Total be compared in sales $XXX result $XX changes while down domestic $XXX million with to quarter million,

And million, prior-year over approximately period. up the XX% was year-to-date $XXX revenue

Our to XXXX marketing as to designed X% in quarter of the first-half million all-in sales of year-to-date up strategy our including million $XX.X average to the sales compared Cost international mix. of the from and year-over-year. freight price benefits $XX evidencing product sold is advantageous pricing increased optimize

$XXX primarily due volumes. production driven from are increased cost $XXX and by variable million higher incremental These Year-to-date cost million. to freight increases in increases to

realized and professional fees. medical offset cost, overall we lower compensation, However, our fixed cost were a positive as

the international our in a approximately and decreased resulting year-to-date increased prior quarter. ton of the sold ANSAC basis, $X X.X% cost On year of second as goods by increased by and well million higher million an from to fees. respectively, as SG&A in per legal XX% expenses increase primarily sales XX.X% to $XX.X quarter SG&A and volumes due compared compensation

by provided increases. normalized returned generating million in $XX.X quarter a capital to of a second quarter of after in more level working only Cash result as the operations million the first $X.X

a for a leverage facility. credit balance as in also balance the Our performance generated maintain of conservative the compared XX.X% X.X From quarter sheet continue million $XX.X to increase XXXX. of sheet second a with as QX perspective, calculated ratio we is to XXXX times

in into MLP, settlement monitor how recognize let's two of of Next, A mind discuss $XX.X these an million flow. our as metrics when income in EBITDA cash to and the translate the results to litigation key is key keep we analyzing we our adjusted consideration QX results in turn distributable that XXXX. operating

tends obscure included were cash in a distributable from and comparisons. flow results, While not we adjusted event settlement this the is do EBITDA prior proceeds year-over-year year in this and believe recurring to

million third we quarter $XX.X delivered making a in QX $XX in EBITDA of our of EBITDA XXXX, million. in adjusted In row excess it

million resources in X.XX of attributable maintenance the our flow included $X.XX quarter coverage and of X.X million. cash quarter was the cash general in $X.X first-half distributable the CapEx the to unit, for and year. Our per $XX.X At ratio is

expansion turn and detail to am I plans to Now strategy. back funding to going provide more surrounding call Ogüz our the

Ogüz Erkan

Ed. Thanks,

look ahead, about there business. is we to a be excited As our lot

We as the assets further are producer. program natural soda ash substantial at that and the will brand largest investment strengthen of world's a capital onset the Ciner modernize our

soda We are the and growing for industry demand decisions. maintain the of we And a strategic the ash. fundamentals confident in our in view long-term

into $XX approximately increasing production yield to to The meaningfully our this will $XX quarter to unit per with funding for to our investment combination distribution tons become in financial remain generated One at most project. fund investment X.X years and should confident place maintains path internally we organic and target quickly for flow put capability level our us plan on debt the the have to a growth of levered event holders. not we're long-term the reduced expansion financing as effective our cost to million business and three two next the profile become and disciplined cash available. distribution a return we to additional to for to offers and increase opportunities Executing this million way year in upcoming to revamped strategy, efficiently allows balanced million projects. expansion and funds over Moreover, our a our allows that

timing to prudently then cost will being investors. more visibility increasing We significantly the and overall to project's have distributions

River cost and position of of our advantage the market reflects Wyoming plan ash position advantage Green the expansion Trona soda Our desire internationally. low in to for deposit take the

increasing As our customers a for Resources that supply to of general brand these from and rise, the to structure advantage partner operational Ciner Furthermore marketing we departure cost cost takes comprehensive consumption supportive global ANSAC international continue believe has we effectively the with demand will more the see trends. around knowledge allow global reach opportunity a Ciner world. to effectively unique

operating has a the an with effort to and hands number of have continuing priority. in terms to operational done for It as standard Overall, one plant success proud have seen we our our all over the our XX of it new operate safety to nine set team performance. last at we while and our turnaround months I'm been

the by Resources. we encouraged Ciner This Thank you enter for Resources. for look our are prepared stage Ciner new forward performance interest a and We in our to your as recent growth remarks. continued future concludes

End of Q&A

[Operator today's concludes call. conference Instructions] Thank you. This

disconnect. now may You

Ogüz Erkan	CEO
Ed Freydel	VP, Finance

Sisecam Resources (SIRE) 6 Aug 192019 Q2 Earnings call transcript