CINR - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Ciner Resources' Third Quarter 2019 Earnings Conference Call and Webcast. Hosting the call today from Ciner Resources is Mr. Ogüz Erkan, Chief Executive Officer. He is joined by Mr. Ed Freydel. recorded. being is call Today's At this listen-only for placed a have questions, all and the participants mode, open the been floor following in presentation. time, will your be [Operator Instructions]

to to the pleasure ahead. my now Please go is call It over Ed Freydel. turn

Ed Freydel

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

now turn over to the Ogüz. call will I

Ogüz Erkan

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

time quarter utilization We show in consecutive operational volumes. reliability at best the our of are XXXX marking on evident short higher is record record short the XXX,XXX production over overall tons. that to levels. the tons generated XXX,XXX ever set quarter plant's in quarter, short XXX,XXX our with has plant fourth QX, was that production its production XXXX is a three prior very in excited report to with the history, focus in results and continued second and It the quarter tons the This produced,

are soda months XXXX, same last X.X%, ash also drive favorable for prices to QX year. to X.X%, international has domestic of up as pricing X.X% and dynamics, and for are period international price with of compared nine compared prices quarter to first XXXX. Domestic third continued up XXXX up in Steady X.X%, up pricing demand the the

price our lower export our efforts mix from customers related this to to priced volumes through of optimize to sales Consequently, domestic year, the movement mix nine maximize our redirecting domestic overall the months Some XX% international XXXX XX% in our first market net to is from XX% sales shifted of international return. to over the in period the domestic XX% XXXX. and same has and

million as net over a XXXX, monitor coupled has million We million strong the $XXX domestic sales nine for first return. international nearly to maximize QX, an XX% XXXX, will approximately and of our favorable quarter XXXX, over XX% respectively XXXX. ended and increase to income our respectively increasing pricing as adjusted The year EBITDA $XXX of adjusted net and September prior a million supporting EBITDA the third result the XX% the and from $XXX.X million benefited, income in in same period months and also of the approximately to to net sales continue to the and XX% prior by production needed increase XX, to both months last million, QX, year. environment driven $XXX approximately $XX.X XX have profile shift $XX.X market generated Net in our and with

new local from of company. now will infrastructure one-third approximately we're the to self will Turning cogeneration otherwise states the operational, us Once the electricity projects, consumption allow in our capital our to utility final purchase fully that facility. of our installing we generate

expect We the will operational be co-gen end. continue by to that year the

to continue in optimize our whole project find mind. expansion ways new We to and have begun plant with and design for the growth also this engineering project, the

opportunity major plant to a In the approximately presents the processes X.X then to and expansion as capacity streamline to increasing tons, various million production site this addition optimize such layout.

projects this utilizing in to we plan, in which and of has the that systems two build our recently scope of our tailing legacy large be upgrade executed project ash development infrastructure. the included improvements experience support company, needed Moreover, already our expansions including are to projects logistics, parent expansion will to were Future electrical, and efforts. soda new

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

Ed Freydel

our tons, detail was increase marked during operating continued Ogüz, are volume commitment XXXX thanks performance, the major X% third of each quarter for and periods in tons, of to To increases in of use an business. the joining to in I'll from your was These Thank first sold evaluate provide and metrics driven for XXX,XXX by million some and Resources. quarter, the X.XX interest quarter performance. drivers XXXX represents our which total the compared steady begin, outages, months we call, our same XXXX. maintenance the financial and some you, the short period of successful around to Today, Ciner and same year key planned everyone nine execution last our from our third

sales months market take of the XXX,XXX approximately export mix mentioned, over international first our XXXX the the XXXX, by X% domestic the nine XXXX, through and XX,XXX almost XXX,XXX first the year. markets. in same price, XX,XXX the approximately to XXXX with last of QX X% by year through same has in year Ogüz third increased up is an period in year. compared the months pricing pricing quarter, through last sales period the as approximately QX of XXXX, of same This months of sales quarter the compared up year to advantage third shifted away As and tons rebalancing we tons QX, shown nine-month to to for XXXX, our of compared over as nine QX and first through by in from X% last X% which the prior to of XXXX period domestic the Total tons sold international to volumes first of in favorable of quarter XXXX of nine compared third by tons compared

performance sales the nine continued the and $XXX $XX $XXX and first to year, XXXX, of in quarter to product resulted increased year. $XX total quarter million our a for from freight production same in period XX% increase million in the of sales strong reaching mix million Cost adjusting or nine net sold XXXX of increased XXXX from the an through third XXXX. million months including last the in third and in first to XX% months of cost Combination million respectively and the in $XXX $XXX compared in as million

increased on to sales both variable same incremental and in per in basis. do for cost compared in variable XXXX periods lower as volumes, cost fixed period ton a the While XXXX to were freight these

in cost cost. to prices periods these period per and the in decreased expenses due same during primarily as quarter a ton related overall Fixed and in compensation down the because XXXX natural higher maintenance offset to gas Variable materials fees were of third consulting compared of cost during lower lower XXXX. decrease related cost XXXX by

employee the decreased third in SG&A SG&A in the of QX XXXX expenses in million while by increased first month same benefit the quarter million compared quarter to through months driven nine nine prior decrease compared same as the XXXX by was primarily professional X% The XXXX. of over expenses lower XX% expenses to of fees. period third the of year in period of by and $XX.X XXXX $X.X the as XXXX

volumes. increase a expenses While nine caused and cash international $XXX.X Cash year operations in last the by increase first overhead of QX litigation recognition $XX.X the compensation our the of was the compared due provided the during to higher in million our XXXX settlement XXXX quarter period affiliates from of as in higher the million in of months export of XX% the the same primarily XXXX. given period to cost decreased year, allocation prior by third

in cash with from times $XX.X by XXXX Quarter-over-quarter leverage Facility. From XXXX. of continue the Ciner ratio operations Wyoming for we XX% QX balance to sheet conservative a million in Credit sheet as a rose balance maintain perspective, X.XX provided calculated QX

how discuss we two translate results key EBITDA an metrics these flow. into as NLP, turn let's cash other Next, adjusted and distributable to monitor

XXXX, the million, included maintenance XX XXXX our with approximately the of cash first us coverage XXXX X.XX XX, quarter of $XX.X flow of we and of $XX.X of third At capital delivered a providing in for cash trailing and was September quarter XXXX EBITDA, third attributable million. unit for of adjusted ending Distributable per period million. for months adjusted the the $XXX the nine expenditures EBITDA the X.XX a month third $X.X in In ratio to million quarter distribution, Resources $X.XX year. Ciner was

our on Ogüz Now provide turn call over commentary I will to to the growth strategy. back more

Ogüz Erkan

Ed. Thanks,

profile a production priority financial results the our Thus, that our it's foundation reinvestment our encouraging. largely employees by success. And key us. consistent are is skilled of and assets Our driven a employee is business's evident in for strong

Our ash and fundamentals. to our commitment and our supporting and We remain business. to on will continuous strong production improvement coupled about results demand continue optimistic global reliability developing generate financial focus for employees our and operational long-term with soda market

on low-cost years, cost global world parent with Considering to we intend soda by position capitalize where natural our continuing projects. expansion company opportunity rising the Basin leader recognized benefit substantially a to ash. new have consumption demand with investments growing our the lacked in serve soda has With trends low new the our we recent in in a Green industry, River being to ash

Looking for growth Resources. a Ciner ahead, be phase excited to we're transformative in

diligently team ongoing maintenance, initiatives. in is on capital to our working expenditure project Our addition our expansion

devote cost funding our for down, cash growth. flexibility the decision our A our throughout growth to capital long-term confident not also space of helps beyond. are only and approach position in reduce We of and our in balanced generation capital more keep a but distribution order to to strategic ourselves provides investment

and we natural combined we focused and objectives performance. technical parent and utilize while to will our addition, financial operations company's long-term the as our the operational soda largest benefit continue ash world's current expertise, business, In remain presence our of to our producer on

safe grateful are do I business, to in Ciner's to In particular the This both and vision one Association. employees Mining thank they the in congratulate in proud our of have for large team Ciner buying of, the future. continued things your Association our in closing, I people who recognized for our job America supporting want for by they extremely prepared as great done day consistently Wyoming for our every in growing Thank I'm and for and being concludes cannot Minerals our remarks. North the a interest mines Wyoming Industrial manner. you Resources. enough safest

Operator

you conclude today's ladies and thank And this call. conference gentlemen, does

now may disconnect. You

Ogüz Erkan	CEO
Ed Freydel	VP, Finance

Sisecam Resources (SIRE) 5 Nov 192019 Q3 Earnings call transcript