CINR - Earnings call transcript Q4 2020

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Operator

Welcome to Ciner Resources Fourth Quarter and Full Year 2020 Earnings Conference Call and Webcast. Hosting the call today from Ciner Resources is Mr. Oğuz Erkan, Chief Executive Officer. He is joined by Mr. Ed Freydel, Vice President of Finance. recorded. being is call Today’s It is to the over to my Freydel. pleasure Ed turn floor now

You begin. may

Ed Freydel

Thank Good full to discuss you, joining our for Laurie. fourth morning. And quarter and year earnings. you XXXX thank us

Actual number certain begin, for available ratio call financial which based earnings discussed included measures to are today’s may the on now suggested as comments Reconciliations results of meaning our non-GAAP in we that flow statements financial securities adjusted to detail federal as Certain constitutes in this of I will turn remind during these the beliefs, conference cash to by Before reasons, included from you financial a can assumptions like our materially call, measures. laws. in Company’s currently in the more non-GAAP the be found discussed of EBITDA, forward-looking us. call press those filings. coverage are and measures I information within would differ distribution SEC These well release. over are results comments distributable the and Oğuz.

Oguz Erkan

Ciner whole Ed. as the pandemic. am To begin, for of was proud team it we in a battling you, navigated the challenging world year incredibly as as for a Thank our I Resources, COVID-XX

required our manufacturing were people forced workers considerably businesses in As in key customer end-to-end. especially waned particular to temporarily and and end-markets closed, quarantine home. from affected. weakened were stay activity, global economies Flat was Manufacturing suffered demand to as glass

we costs our allowed control. our minimized through we weathered a do in effectively execution successful around time. of last were Curtailing workforce and abrupt operating it to is could the that downturn in production business keeping our able way always us active the resort, but However, what demand

and for and maintaining talent outstanding XXXX. and safety high on standards to especially those tasks different during their new health irregular our demonstrated the job taking in done and I flexibility operations want employees Our commend in

value our principal COVID-XX is the workforce day zero safety operations a given committed XXXX standard start was our response. to a safe from believe COVID-XX and in COVID our and avoiding the implementing this and to to Our I successfully due had a to applying work testament lost protocols, strict achievement operations. circumstances. top we incidents to adhering as considerable On of our disruption to

XX% customer economic demand quickly, came recovered International fairly by in manufacturing. activity to sales QX. inventory high pace evidenced especially and to a market resumption our at of more rebounded, of moderated the due from back As net levels sales downstream domestic QX growth slower

As we quarter in look new coming market. back the XXXX. recovery international on continuous point market prepared strong in including XXXX domestic the ash December reflected fourth our second represented boy quarter we domestic amid XXXX provided demand. as robust low for true of a customers soda a the recovery in Strong in year, of relatively for a slower in overall volumes sales volumes the The

from our growth Asia. fourth QX continue Export expect were trajectory we in economies and volumes On quarter side, quarter XX% saw international from in the particularly a the in up world demand the lows, stabilize, XX% QX continued as end-markets. to

as By the we to million executed am cost, reduced cost reliance $XX to schedules happy implemented our Turning $XX we personnel on cross-functionality, report contractors. well optimizing in QX. our I we on program operations, outside as labor that our of savings successfully million and

believe hands to yet reduced our SG&A the going We expenses. operations other and benefit our fixed took I we projects, impactful minimizing also our approach maintenance all cost on forward. spend small, will

work managing some in ratio, maintenance strong employ. our XXXX no Furthermore, to adequate stronger, within we total for the company, equipped was general hold an the of to was detailed the The more which we our also Green X.X repayment our capital a year made that important continue number liquidity million, better was to also resolve difficult River the equal market cash decision of pace before to Directors of a distribution certain step we times ensure our we postponed to fourth efficiencies, engineering will discretionary leverage delayed suspend Project. which evidenced end. $XX Board tested risks at of have to end we throughout Redirecting and EBITDA life QX all, to partner brought the our the experience weather this the while order recovery of of is year, projects of by downside maintain in Expansion adjusted debt and As forward. uncertain. that going debt-to-EBITDA operational efficient emerged pandemic the question All end-markets. COVID-XX as in nearly took quarter There our was at but theme our believe Ed? remained recovery

Ed Freydel

million over year-over-year a event full joining tons, at in in running we inventory, XXXX million XXX,XXX metrics This as call. we working by compared year. international $XX.X as imbalances, $XX.X demand marketing against in Average million primarily X.XX $XX.X and and XX.X% release lower a tons, prior our the XXXX decline as operations tons high pronounced XX% from for in from quarter by than to of evidencing key required our in in in increased $XXX fell XXXX X.XX decrease was increase ended including distributable million, X.X% full production the far for partially beginning domestically to the in of of of EBITDA, Net the XX.X% ash million year. decreased declined income and was as to of decrease of second quarter levels and quarter XXXX freight sales fourth to Cash pricing record net MLP, QX for quarter our part sales year record or XXXX second – from due and in quarter negative sold income million Domestic sold result from which in increase volatile tons, third prior XX%, $X.X totaled note million rose impacts of decreased the XX% cash brought of in Oğuz, In resulted XXXX, our in quarter tons a with and was the the the discussion net of million XXXX. of and fourth million. due in XXXX. the in $XXX EBITDA to the volumes of the fourth adjusted in consumption QX in offset of you mitigate sales the of more $XX.X million $XX short XXXX in levels. XXXX, in X% volume Thanks, to income million to With result to third increased an to we a environment $XX.X of and to million in significant sales in the Sequentially, the price experienced production that fees everyone rose inventories XXXX from XXXX, volume. X% X.X Cost non-essential lower capacity, expenses, as the an the sales cost the $XXX XX% context of the and the million a quarter reflecting the from primarily consumption year. domestic The XXX,XXX in from capital to X% of recovery QX fourth of third of a as quarter an of quarter compared resulted costs international QX due of non-GAAP fourth XXXX volumes third tons XXXX million XXXX, XXX,XXX products fourth leads – strategy $XX.X line professional XX% sold year monitor the million XXXX from net volumes. lower recorded expenses I flow. soda a million at fourth from services, weather this adjusted net the in Altogether, produced $XX.X average order will lows. XX% pricing we of of overseas $XX.X and curtailments quarter compared to in deferral sales million the compared well XXXX XXXX a manage and net XXXX decline operations trough. of declined contracted year. international thank provided quarter XXXX. the to due price The of challenging back in to $X.X Total to was major sold quarter quarter XXXX. SG&A a for declined in distribution compared into supply decreased

have fell XXXX, generated considering EBITDA for million we the quarter XX% was in our really which on, Distributable quarter recovery quarters million the flow attributable evidences $XX.X within had quarter fourth touched As XXXX, compared Oguz two adjusted ratio the than quarter times, distribution. Based of to and year flow cash our unit elected less $X.XX full on cash for would if our to million. million, distributable third coverage in $X.X been to quarter Resources first just fourth nearly flow our X.X $X.X our of Ciner of $X.X distributable resume Directors million per of EBITDA cash was adjusted previous fourth $X prior. the our of Board

structure the continues the continue demand of be we feels New as As maintaining with to comfortable resuming our intention our leverage. capital Directors primary once as pricing a environment, of well with conservative our distributions, in our Board focus Year and

still we we X.X plans. we to, are While expansion year-end of ratio times, remains with it particularly resulting are comfortable consider above the as debt-to-EBITDA accustomed what

we of evaluate leverage QX to QX ratio resume $X.X with a Directors our our distribution. Although our appropriate will quarterly adjusted Board expect through burden anticipated be EBITDA continue of is forward-looking when of million to it’s XXXX, to XXXX and

defaults that agreements. to Wyoming. in would entered I facilities. facility to of ensure recent triggered scenario like event a could be credit of default at were level The We within is our our not last proactively Xth control result the in credit not Wyoming group our parent parent Ciner to into that to March disclosed of facility the our week. decoupling an our to parent at business agreements event amendments bank a be from The were operations facilities Lastly, company effectively due would event touch our within change eliminate default of facility a our we amendments revised the default at on

structure $XX In the credit addition, we decoupling capital effort, million which level, of the credit at our overall the structure. and line of simplifies part Partnership terminated as CINR

solution reached. the Our bank favorable group process. was was to supported together We ensure worked throughout quickly a

comfortable relationships strong are the our we value these. lenders and and like outlook with Our financial performance

objectives. call more the commentary turn I’ll our Now, and Oguz growth to provide to back long-term on near over

Oguz Erkan

in ability performance Encouraging the operational from a well changes. financial as sheer fourth Ed. our both quarter quickly Thanks, downturn, endure and strength reflected to as rebound our to flexibility market

challenging am As we’ve business. I outlook a the our year about excited for us, put behind

optimistic should that vaccinations are manufacturing tailwind provide We spur end-markets. activity the key in COVID-XX and macro our and consumer spending economy will to a

material key of where continue economic demand As is for experience we emerging growth, in base construction, long-term and a use ore to production, sustainable soda economies believe development, detergents poised increase. especially to production, ash chemical

future. also We batteries a offered in the production that sustainable and potential excited storage the and are energy electric for about leaching vehicles benefits growth for

Turkey, Ciner with advantage believe in distributors. us of is our Our in to as exit step with largest was end this create on year synergies logistical that parent to official soda capitalize take company’s of cooperative, the which last customers potential. key and We the was exporter uniquely relationships a to this global growth and positions a production former of ash Combined strong decision export our of world.

expect directly we a export model, As volume to to ANSAC our transition new specified XXXX. in we to sell

existing For continuing our leverage our chain sales, while to value own optimize company’s customers. export the will our our direct of benefits to channels, serve parent we distribution

the market outlay, Turning to and recovery. the capital to we of construction River of timing Project, Expansion our the continue context the Green schedule in assess project

our in fundamentals not upgrade that production are per expand Our long-term project overall new opportunity to in and capacity cost our we our reducing modernize that the presents operations believe support the market. efficiency as process. ton confident our Furthermore, of sustainable long-term we maximizing has to assets plan changed for the the the production, and

to the to market existing leverage clear becomes structure of by we during our ongoing next capital the year, include we steps overburdening We to pandemic, influenced In future. expansion efficiently refine with for pursue metrics the pace our project. in we holistic are the the expect optimize that and cash will in in strategy as developing distributable financing tandem, COVID-XX timeline recovery our the largely project, intend a XXXX. refinancing our flow access this our planning capital that We or outlook credit anticipate the without capital, expenditures fund financing facility will to on

While objectives our turned leading our we plans, COVID-XX sustainable of domestic delayed it our we long-term and have and to some is in anticipate ash our basis end-markets macroeconomic as providing a a customers. natural economies soda speed to as will growth growing that merely pandemic hope closely well our that corner bump on follow. strength We worldwide, industry

people once tremendous overstated prices health closing, should value of be and and the difficult their our interest be COVID-XX pandemic. year we you see This successful will achieve of and earning support employees The despite upside Thank want prepared to I again us expect cannot ash our I one. number is safety business. fundamentals it loved always for for the the concludes our Ciner Resources. a our improvement, see The priority While am to continued the remarks. to in thank global to for your meaningful of ones team timeline their proud industry for predict our our efforts. In potential soda strong

Operator

Resources you Thank the fourth webcast. and and for conference Ciner in call year full XXXX earnings participating quarter

day. You may lines a your have and now wonderful disconnect

Sisecam Resources (SIRE) 16 Mar 212020 Q4 Earnings call transcript