Olin (OLN) 28 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Steve Keenan	Director of Investor Relations
Scott Sutton	CEO
Pat Dawson	President, Epoxy and International
Damian Gumpel	President, Chlor Alkali Products and Vinyls
Jim Varilek	COO
Todd Slater	CFO
Hassan Ahmed	Alembic Global
Alex Yefremov	KeyBanc
Mike Sison	Wells Fargo
Kevin McCarthy	Vertical Research Partners
Frank Mitsch	Fermium Research
Jeff Zekauskas	JP Morgan
Arun Viswanathan	RBC Capital Markets
Matthew Blair	TPH
Eric Petrie	Citi
Mike Leithead	Barclays
John Roberts	UBS
Steve Byrne	Bank of America
Angel Castillo	Morgan Stanley

Call transcript

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

Operator

Good morning, and welcome to Olin Corporation's First Quarter 2021 Earnings Conference Call [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Please go ahead, Steve.

Steve Keenan

Thank you, Sarah. thank joining and today. everyone, morning, you us for Good

will that me along the Before that estimates these follows, that Please let projected. statements results future you expectations question-and-answer statements this of or that are and we begin, those note slides could remind differ discussion, performance. from regarding associated with session and forward-looking include actual the materially

under Risk differ Factors factors earnings events. that of of yesterday's limitations could from to our Web will slides past the results without in projections transcript available of today's recent Some in press most on site actual the section our and section copy Form our described are the cause in and be release. XX-K A quarter first Investors

and CFO. data Vinyls; International; Scott CEO; Sutton, be Olin's Slater, Chlor remarks, your Gumpel, to thereafter, Scott With are we the over other press under available and and Sutton. Scott some releases. with Olin's to Alkali questions. Jim are brief and Our earnings take call COO; will Epoxy me Damian release morning happy now President, and will information this begin turn President, Products and Dawson, financial Varilek, Todd I'll Pat press Olin's

Scott Sutton

the future. formula Yes. of of everyone. their our success, Thanks, their story. their Steve, for Look, and optimism hello proud to Olin Because had the our for I for to opportunity forward optimism team I'm value super passion, and and pull results creation

to though is Uri adjusted exceed is second significant excluding of second quarter onetime than proof EBITDA quarter. deliver in the year. $X.X have track more Olin EBITDA, impacts, billion that track point adjusted on EBITDA this first expected turnarounds even to adjusted First of we One quarter to all, is that

adjusted EBITDA the second quarter exceed should also The quarter. third

So on EBITDA years, future $X.X is really the and the being emphasis projecting adjusted toward higher of to a above above. time start it billion in

to a toward be that expected XXXX clarity, positive direction. stone is For stepping

X. Some Slide Olin billion gap X to of a bridge number tells through is to maybe But above. key Slide billion story moving on quickly to number phases $X.X four and $X.X comprehensive evolution. activities that that are shown more

All much business. kinds sophisticated expand our cash them machine to footprint. don't internal that of a for take beneficial as X, equity and of into tons commercial parlay this we slide. price from employed model of to Phase be will flow smart differentiated the the molecules a a look our and the lower and are better larger target be on with We currently innovative of the the ECU, ECU you multiple to inflection apply the weak points in co-production X, potential first we our of be first two solving as desired to response. take looking leading our setting we achieve earnings the we'll whole anticipating calls, conundrum optimizing Think discussed by our and across of proceeds Please to and miss of will value it customers. participation including invest preparing Phase Simultaneously, prior of the in already ECU. Shortly, activating have unique bartering, model leading in millions trading across as serve in to our side corner Olin alliances value enhance and X then way strategies phase Phase similar structuring parlaying model

Okay.

up more our and value the value to derivatives market caustic key us a of Slide words, back fourth chlorine throughout us we the in in bit and the and the ECU. some that activities our X number participation pull other first caustic, chlorine me matched only In not but side to we quarter expand to which allowed sold allowed chain. hold importantly, less significantly relative to weak today to fill Let quarter, results. shows

by I the actions impact was the positive epoxy significantly PCI we key place think the as also Slide results. X ESG is Olin wins taken the expanded slides. shows on world's shown like our by offering continue number in Slide our X. into to to would shown and clearly and applications. also stack That value the innovative in lift customers to epoxy as the I the made team, leader on updates in ECU number up with scorecard Look, appendix highlight key our our Olin

to team's many the Olin's have lot sustainability contribution. our delivering that We Again, for in are broader this track made of here. report a we commitments fully comprehensive to on of passion still generally work demonstrates the get

opening me let So up on it number all contemporary Q&A, before this Slide X. call wrap up into value to

in success of forecasted delivery. yield our shareholder free of running for roughly to at Our XX%, push stages $X.X the levered billion generate this is a year, parlaying value stock roughly and leading which attractive, current shared team's in flow cash toward price the just early considering we're of represents really

that mean questions. I we're now my to take concludes And Okay. comments. opening ready operator,

Operator

[Operator Instructions] Our from Alembic with Ahmed Global. comes question first Hassan

Hassan Ahmed

I guidance, like debt of paydown very accelerated the side but particularly sort numbers, Great good of things.

also you of the side approaching X of Olin. at mentioned sort of that guys should you less be than the adjusted called debt by X out end, and net of year evolution sort as EBITDA sort to Phase you times Now

into or how a Just should terms share wanted be thinking we in upstream downstream? may what about of how be bit be Would it deeper we like, M&A? to should about X Phase thinking look of exactly buybacks? dig And deployment of sort capital,

Scott Sutton

we're somewhere now is activities forward. and to year, actually. we Phase I mean, up And between X those that's do mean publicly be a I M&A of X towards introducing right. that. we're that think yes, I X of why this you're debt pulling EBITDA ratio part And can end the at this end

like to presence invest On our capital there that this parlaying the and make working things get model. the other be alliance investments X some in of able we hand, to can differentiated of in Phase we are to as into actually expand

those have So things. all we

are a come to absolutely our introduced our that some focused there on now We yet on right subject Phase sheet. be rightsizing X. and more fully balance will Hassan, really of calls. lot future it balance But just right will and haven't sheet We conditioning the be

Hassan Ahmed

And talked the that the about was as follow-up, you things of a back, you called ending again, as cycle one guys it.

a obviously, So should But I we selling disciplined? continuing be is we like. what of obviously, into competitor and going wanted avoiding stronger what the sense the understand of things. doing an sort and market to side out, of understand markets you're it's certainly I you're end How market, seeing oligopoly. the weak be on just get could to the arises that everything you mean market guys beyond that Olin, you are I may some that? cutting Because gains. one of just could the of seeing in better us gains, thinking what there terms sense of right, guys there landscape? risks the could some you price share be about but a be is doing be give

Scott Sutton

hard on comment of solving our for It's the on me forth. ECU to weak to Hasan, so really competitors where market set easy conundrum participation through doing really comment this me be and course, is worked what for on as is ourselves it'd side. we've Olin

just cross our points don't we upward in curve. downward value on We our cross inflection so doing And inflection that, points. only

there's that the is our and publications run quotes are when going you takes Hassan, so two not about the lots talking XX%. utilization a out having of effect see to to to, serving And around you're able capacity run assets see think I But needs if And what challenged basically somehow that know as rate, be of scenario, you there it, you're that or run more you co-production XX%. in one above to well. fact, because with to production these different XX% XX%, has us about

that to to be our XX% leading actions submit are closer XXX%. just I'd So

else. answer So than question, say, maybe evolved but our toward with have I direct to will more customers value not discussions a your anything

Operator

question comes next from KeyBanc. Alex with Yefremov Our

Alex Yefremov

epoxy about is What towards general think I XX% in industry more moving this price. this do term. If position just How would the equation and talking of were respond level the you capacity are to long this see economics high, in margins in medium this? competitors to part of Scott, reinvestment you are you ad we amount? assume margins

Scott Sutton

in to just that to competitor we start go action here it's to scope actually would But turn adjusted saying by way just our a within range. have get go comments that it but I probably Pat's into EBITDA, and We there. moment. the over won't to a I'll XX% Pat long totally

So Pat?

Pat Dawson

to of kind epoxy it in Alex, I not clear should brings that be terms I XX% value the look not and if the to and say properties epoxy of performance fact the there's you able of returns. these its any for would performance that it substitutes command because really at customers, think why

space an in form monetize position leadership and that's our you we we the very and also, vis-a-vis can think way are of positions the liquid space think look I midstream competitors hydrant Epicor more strong. occupy, I resin, those at leadership the epoxy that upstream, of our

we also, motion, have the option in that. you produce buy, of the X. get are whether produce, to if to parlay opportunities frankly, option on more versus position upstream the the option have a make value that, into opportunities number That to see think that Slide to can already I quite we we for toll

think a lot optionality there. I of we have

move the parlaying way activities game towards accelerate at into we look XX%. those it. And here really that's the we're that So working we to as early

Alex Yefremov

to follow-up, a continue mentioned fourth from point as third coming think you lot you third US half? Scott, the in to Coast, know. Do How improving in Gulf you as expect ECU do you PCI the of EBITDA We the to quarter QX And at sequentially. well disruptions level? just a back we'll had quarter down start expect some in behave you

Scott Sutton

declines But of lead performance ECU would our ECU they're some us is going growth for would ECU an what exist to do that how improved we're PCI position adjustments and set we're to that what say in mean, in we that we in have make But short points our where running PCI. to in to through can PCI a our up a I model be of say, next our as Well, have the we EBITDA. because improved is well. they there reflection are EBITDA quarter potential going and lived to phase I be the perhaps I future be that in as going

Operator

Wells with comes Fargo. question Sison next Mike from Our

Mike Sison

sustainability through potential does when to XXXX that will the early I that what the maybe I there a but is think go it and progress? you bit from know that walk ‘XX ‘XX. keep EBITDA needs in could that, guess seeing Scott, you're of guidance, some give the do earnings to like things under here specific little you sound up continue And ‘XX. your that happen and to control do to you Can to it's of about

Scott Sutton

have considering be narrow stepping XXXX, we billion. stone right at $X.X I and above going positive was, that. said now, fairly a given guidance to we So going that's what for billion XXXX, sit $X.X where to And it's

the specifics we from at given time, our haven't model. will about And that you number Mike, that, now, put on we've listed I we that help think around supply and would I those that. especially and unique out enhance improve underpin continue things all activities the looking two of think out would say But And Slide So Slide ECU, to those together, we to X. they that a the on some only when when X. I fundamentals But improved. they just year you listed us, of out same add on that demand items

Mike Sison

just then quick follow-up. And a

XXX I and will to whatever, the much much any business get how the demand? the third Is supply tightness way and about of let's help model? the ECU improvement how XXX And your in there fourth was, you of in mentioned from XQ. understand in quarter the kind is us think PCI say, that to new

Scott Sutton

the because of representations Mike, margin, movement variable PCU XX% difference that for profitability. in our company ECU our clarification in Just very index that big made a really

so we the of close $X.X to range move in XXX billion And what said to of to up get got EBITDA. is that index we’ve

get quarter, second it’s wish to while going happen to it I not would the that So level. in

sits. that’s So where that of item kind

Operator

Kevin comes Partners. Research next with from McCarthy question Our Vertical

Kevin McCarthy

Scott, about having that read as to signals commentary to or it capital I be overreading Is et tolling seems the cetera, hear for, here? greenfield looking slides, new as am opposed agreements, what going to the listen bartering, building, to me I solutions when you’re we call, the alliances and let’s that light would or say, brownfield correct I capacity. to into growth that

Scott Sutton

we mean, are light. I do I No, those we fact, path correct. that next have already that’s to in mean, a activities. in engaging is And growth capital

earlier epoxy an just that across answered had base. customer for Pat example, opportunities our our question our when that a can we And portfolio. shares heard we’re complete materials resin, tolling liquid You of why service so of some to that upstream doing into lot things do there’s

that see of greenfield So to our we do those pull are don’t There really we support the that growth. strategy There’s limited forward we other can fastest yes, I things brownfield the the beyond term expansion, expansion things future. can as near part structure. that could on will X Phase it’s capital alliance complement that a be growth depending But might with have. opportunity that. low

Kevin McCarthy

And updated arbitrage happen I’d Normally be a see is we’d opportunity. when what chains. Are thoughts a that in today? secondly to more then parabolic if trade. what your market, means on for prices And we’ve international to would kinds interested hear today’s profitability. exploit physical imports from fashion, rise think you got threats friction of Olin’s so, supply In chaos do global trade you insulated and in all

Scott Sutton

I'll Well, this is winning I'll a and it. bit model our to ask active then But start little to a model. add Damian very

And we with moment, right at global participate so in product. the the right trade

then that can probably being So instead that subject from to reactions a better let we're did. Damian of participant an that, may do in but job active -- develop that just with I

Damian Gumpel

to dovetail and is whether comment, on in you is it. to will put stimulus from regardless up have really to now model not trade on that slowing, adjust just set the the it that I way mitigate Just tell our demand right it’s flow, of is the changes the we us,

And available know, plastic. you lot a Vinyls we but regions running strong stronger that a of And side there mean we have We where of saw pull so, we a we were back that globally people in list material. for some prior from and our before. purchasing globally at of examples. haven't It on just our that of things our participation of running side, in you saw, weakest give to plastic we're brief done the we as prior we paradigms did our models, lot side towards look demand, pools of products done

ramped were did to doing some our to wanted do. serve able strategy met customer to And them by so ECUs that, growth we participation fluid that and and to their the up. in able on be desired a And we But reactions we we that effect way. still demands and very efficient

to kind one just really the curve that's that example So of we or any fastball adjust brief our ball of way comes way.

Operator

Research. comes question next Your from Frank Mitsch with Fermium

Frank Mitsch

just doing chlor [McIntosh] to things. down the more mentioned behind the diaphragm to a X, model you drill additional Slide yet, I bit the of Can wanted you of the the of And through shutter millions across side pounds. decision On onto took decision sits talk that? alkali you little capacity. that XX%

Scott Sutton

XX By year. of selling of roughly clarification, just of the millions we're mean, tons million for way, we model millions do sits material, not just our additional across of material. I additional pounds business, tons a

shutting the to underutilized in mean, down, announcements not that kind And fetched markets. in we're then had because poor way run of reason that about were participate yes, to our think has And model. they when that the underutilized level. they been going quality assets We we of not in said maybe assets. far grow of it's we can the think I we've that capacity that you So terms

don't So asset quality have anymore. therefore, a as means poor one need example caustic not that participating market in we for

much to weak not that about. nimble weakening. balance to It's So demand in that's an sheet indicator is the rightsize or future. And what we're going our be more it's

the opposite. In just fact, it's

Frank Mitsch

strong EBITDA is you million of an aid looks along. off humming that, repealed talk seeing when bought $XX XQ the but mean, incredibly business? obviously, is have you're heading that Can originally with And EBITDA what it obviously, -- that Lake much Winchester because should it's your per was he mean, in City result? like seasonality that year, City and ammunition jumped page, the I through per Lake that of quarter. And we listen, really indication I the about

Scott Sutton

as mean, maybe we a more. Lake actually, said, is I City little and I just would intended we as doing say bit

has got part remember become not integrated also that part You military only of fast. our it very it of but our business. commercial to we business, And

we sports So a fantastic chain and after you see whole continues across target Winchester we're acquisition use market will is it and it's the the mean, that. sport target seeing like, the some bangs our performance to made really that team going the And and shooting approach the do demand fact in work result And whole us target supported is areas, you that big brand just fastest see whole the there. Cup. to had and to business to to Winchester that and to grow Ladies player start quite the lot, growing Clays a supply Sporting us the is go Ladies strong improvement And you're stay doing shooting or one I of participation shooting. growing did of a of out that. the we in we're the and really optimize our be

Operator

Our next Jeff question JP from comes Morgan. with Zekauskas

Jeff Zekauskas

different, in, gaps. the How of roughly? that capital the it various the is In spoke And higher pattern I of EBITDA you much your light $XXX ambitions, year? million several don't than cost expenditures is, assets tactical your a over that next know, might to is fill or years buying of strategic

Scott Sutton

a I capital. parlaying piece of different have But of would is might we we flow in year going we $XXX I at Phase use targeted the next level and few can of you to that years, come opportunity out of some that we our be If a mean, to to into Phase to Phase the in we in X some do going years. it's good way Maybe with general, X, it. potentially and million move in M&A. would on as even comment why the few range some kind the business. complement to do in a of structuring I structuring. did million of year next opportunities that But X, who's statement therefore, in to that $XXX the But get fact I for also that. Phase for may are the say, we're general, cash stay level some Jeff, at know activities that Jim, X base for invest free wants next what levered our me,

Jim Varilek

We're continual looking our hard base at a very on asset basis.

So we and lot of of to fixed costs differently And bit it little and to that and running so so actually so that And forth. fact asset maintenance the spend, run some side amount now need the you've we've the the what that dollars, we the about we a capital than productivity in That run. to and progress we things seen past. at is look we don't the to weak the ECU have we're productivity also need forth. made on of what reduces closures of to used

feel we've benefits we're So made phase million, investments at building like of heavy $XXX investments. of the we reaping early now in those the and the part

few are the million be so going capital range our in that next And $XXX requirements to years. for

Jeff Zekauskas

much caustic quarter? soda And were then year-over-year follow-up, for the or volumes up my sequentially down and your in how

Scott Sutton

inconsequential of product just specific. are best utilize almost to something a results. ECU. use with, relative prior period can movement our the more the those you it all It's our and how deliver of in Damian Damian. the that's preface ECU give of across to one to bit I'll the pass whole of I'll parts derivatives all little that this probably volumes activations value a Well, little a we to Again, time

Damian Gumpel

a that had I'll layer any just that. model. onion to just doesn't Jeff, up answer Scott is end our they -- they than in relevant saying to another field result in well, of what period, the lower were It are but really probably that's the matter

Jeff Zekauskas

lower? much How

Scott Sutton

of going the are pulled specify We out pool wherever It -- to low weren't value liquidity was low world. lower. purposely in those. of We they

we certain as in area globally in market. of out said if the export and market part pulled we've the of at from has well. are been that's So export we the you clearly and pricing we pull there past, the one the that traded an a weaker on can were level participation with back -- markets see were others And where

And of So lower, is And lower still going the by to fresh of at other. that strength look an what to area is the sum towards decision, ECU The just always going it's break to lower managing. that we played chlorine side not at one -- keep relative teeter still is lower away We look completely ECU We're and else a take lower the purposely. from a totter. the relative to on soda we we're the paradigm. caustic side just zero side playing the side. everything

Jeff Zekauskas

by XX%. as Is that? much it as Lower

Scott Sutton

Jeff, I from actually you to I what would yes. back you a might be anticipating pricing of inflection to it than moving you point. sort refer I'll X, less across lot takes tell just a Slide And mean, that keep is volume movement

Operator

Arun Our from Capital RBC comes next with question Markets. Viswanathan

Arun Viswanathan

I well. wanted next, soda understand pricing So what pricing like are of seeing caustic seeing the market for rest off, year? uplift you to looks say, do this just in It the What or through expect right two some soda first in you now. as over caustic you're I guess the quarters

Scott Sutton

that want you Damian,, one? grab to

Damian Gumpel

the with the is the than trends I at our ECU. at, relatively the manage short up conflict a right simple mean that we again, any economic you now if the soda so which But can to side be still weaker ECU it's remains caustic regardless is look trend participation based well, opening answer economy, a us And economies to goes in of is, and the where level, recovery, historical high on aforementioned upward other. that the right association that are look weaker forth. of seen to back trends side equation and the

Arun Viswanathan

opportunities plans say, moving also downstream in participation potentially into you And on then PVC move consider on or could your EDC? of you to elaborate your forward. Would comment you could more some also

Scott Sutton

move where do today to existing world's looking likely not certainly of There's much into actually are we our participate so we're well. the complement you're merchant largest mean, opportunity as already I marketer to EDC go that EDC Yes, we that things downstream. in business. see and us

Arun Viswanathan

And on you demand supply/demand bit structurally do optimistic overall then market if is demand? next Do going years comment to about trends. on could think I in has industrial you just you little still the improved to follow it more a ask this relatively several and feel Or production for ECU?

Scott Sutton

say It's I little better. get relative every starting it's to great seems demand continues today. gap continues widen. quarter would to get just generally to every outlook supply is better. month, And not our improve But to bit and been super certainly that to anyway a that that's

Operator

question with next comes from TPH. Our Matthew Blair

Matthew Blair

your you one will to kind do risk that after Scott, alkali of about And a capacity capacity bit year. just that? some be you've I than shuttering little think industry how But been Obviously, taking. you reported it's that for could a that the restarting been competitors expected? what this it address the of different be hoping about was might approach So as chlor more potential a growth than

Scott Sutton

likely to quality will going that, won't fact a to actions. But in overall their with lot up you certainly, It's Yes, how supply what about growth there's when of that a we're that see of the then of be assets portfolio than I the run ECU, And be a in and just that positive. would which some a Olin comment few left supply there future there's time. in out that demand. is to yes, say there going us competitors added still value informs only and into our that lift we're over markets is core to announced smaller as factored on specific have I plans our lot of I course, and the lot is mean, outlook marry what the I all

out we expansions to there. So the answer supply simple be expect is, certainly some look, there

Matthew Blair

has share like hoping more strong you're you derivatives could looks any any more On And was just then pricing that transparent EDC, more was than details commentary on up that what XXX% seeing envelope? on quarter some pretty on were you I it just than chlorine chlorine in sources, pricing. other could pretty which other offer our the especially But quarter-over-quarter. HCL

Scott Sutton

Well, that of is envelope chlorine mean I most company. our

and to or going as a a key Pat, add for I'm might epoxy make on on let then, So chlorine Damian to comments want something to comment two being us? derivative

Damian Gumpel

at Matt, together, you I'll slides. refer a couple to to tell we than around And for share. the I'll put Slide that the both to spectrum in -- go higher that the pretty Scott's are just volume broad year of questions and are XX. ability about back, slide seeing of very chlorine appendix market refer then you and our throughout of Slide a beginning, question you The rest also comments, forecasts our momentum will the to those, when continued them. those you supply maybe a XX. refer our map you still the at customer I ability you heat are forecasted showing for he, you see of back supply. uses, derivative request chlorine widespread from and customers interest or Olin, to end to for Olin’s I'll see things

So the the of is comments, course, side, give an still stronger that relatively to should you chlorine earlier the robustness of my going side. to as caustic as indication which than

And pass continue it legs over to bleach versus map. chlorine, heat three those But ACL, to I'll all we'll ECU [CCO], the manage around it's in Pat. So across you, that. the

Pat Dawson

say I’d for treatment. municipalities wastewater continue standpoint, demand. treatment a sell do into water We've improve to we on and from seen Matthew, upstream epoxy that some of our products really

at and and again, epoxy. a though maybe there's we've is and oil epoxy life engineering, to electronics, been which an that, uses improvement chip and back seen coated from bit starting construction, little civil we're with epoxy everything of you Appliances, like some fusion even pipelines And machinery resin see coming standpoint, gas, semi automotive, there. bonded shortage, look for

we But of said, we're I good back I much recovery. to think what demand think based this very use more So Scott mentioned. coming innings it's on We just in month some we've end early the there's markets improvement. seen month think over of still these

Operator

comes from Petrie Citi. with Eric question next Our

Eric Petrie

at Is through exposure to overtime sales from do base how your by XX% or the chlor that of forward? you Just see looking it's years, the the higher net that of alkali backs strategy gone last region XX%. over going US part couple

Scott Sutton

in I think mean, us level It’s we there. model. America but North of North statement back business have activities and really expand do see the outside enhanced opportunities business future, It's high in you'll our of we've I certainly lots the flex as just that our globally had more parlay there's to that even America. a

Eric Petrie

And value markets, a in where to? versus epoxy for do you question goes higher end Pat. get to the And profitability that difference then then much low a margin there is currently? How down maybe want between into regions

Pat Dawson

some not of we're we've it's been have industrial business. pulled here an been you business our high And because X, is types systems. less volume there's margins on you that if that low certainly back putting over that's area value about civil type some low areas then supply of look the growing end upstream think, I stocks, where we're energy, more there. where wind into value we the talk we orientation mentioned performance earlier, the have of And those from and coatings, formulated places but margin that increasing is and doing coatings, in base And Slide our definitely I engineering applications. of

activation. a And that our I of all one dynamic have geographically flex the how we time advantages have our that’s the pretty around of flexibility product process speaking, regions. we that to we between leadership we a as lot think use is

So geographies, that return up come so more the up juice where don't do the as to say much wouldn't I our I attention ECU. pay to opportunities strategically create to value anyone I to

Eric Petrie

undergone that activation. tons And maybe the change? first to and million moving lastly, value Scott, change, higher strategic track the sell from us and much of equation you the How help progress XX have your this of indices away

Scott Sutton

we'll attached still a sort to And to Well, some just tons, get directly. very that an indexes by you into we've away year, of indexes in chlorine end, left merchant some we're about the the But like of roughly that that minority some part areas I XX still some many particularly after where nonfunctional. the say, would or off really continue I from indexes. is will index of that we're year think it's hurdles if have least mean, at with and still completely completely got million next

Operator

Leithead Our with Barclays. Mike next comes question from

Mike Leithead

Scott, term guess, question outlook. long I on EBITDA the

telling is helping call, think the maybe get it's talked seemed could billion $X.X where you're this billion earnings But obviously, was level, billion like $X to that. us of roughly a power last you years year. thought months And later, there time. it you the out get maybe and quarter And market I $X.X over three so. you being higher now or hurricane the this about tightness two business on than target

long Just that term So whether confidence I'm just the better trying so business over you're past the to what's earnings three over better why much the commercial months? changed the power, maybe has the moved understand having? higher of it's power success time, in pricing

Scott Sutton

is there say term cap are numbers, of sort I billion. get see $X to the that say, running $X.X any good And would upward fundamental other what's billion, and on. that successful along whole we've left the near lots performance these there's lots points that's we momentum I'm talked billion, company and to of I of Fundamentally, the this all of just early a limitation. team $X.X is mean on whole really course, there's factor say an at model. curve. There's of or would runway business. there. I we that, just being unwilling about our going kind of cap no

be but a there's One today. about here. day we'll runway thought long talking just be would well, X as of numbers different put to I too so scary And it up sort

Mike Leithead

around then $XXX which a on and question. million, spending And few But I million to question you're most runs up the the is $XXX much earlier your ratio a follow tangential think companies. CapEx capital maybe D&A lower just Jeff's than next guiding years,

able would lower expect to number over that, to or time? how So towards start sustainably talk we to that about you can just you're D&A achieve CapEx move

Scott Sutton

there. ahead, going we is discrepancy Go have Todd to mean, such Todd. I a why explain

Todd Slater

cost of big is amortization our depreciation years Mike, remember, And those included is and that portion of ethylene in ethylene. to amortization based payments of thing One a amortization. upfront for XX

year plus million $XXX a over well agreements. is amortization on those So

D&A, other And summer when were those may the large in so you the to that's of ethylene us year. difference when part people.is you and 'XX look all at the of made compare we completed starting investments way last in back

Operator

comes with Roberts question from UBS. John Our next

John Roberts

quarter internally? the or any you during it using electricity Did ethylene of instead sell

Scott Sutton

gain a did out fact And a gain. gas associated we onetime called it buy that game, aware advance. very And think of with We have as hedging is in you're essentially that the energy I our program. we

we to were we already during to because way had down, ordered hurricane, what we had So shut bought. utilize the no

sold we So it just back.

John Roberts

didn't you sold the make back? you gas So electricity, just

Scott Sutton

puts it. That's there. not that there's because million goes lot part it. $XX itemizing part we're that and of into Yes, yes, everything a takes But of that of gain is

John Roberts

Remington? dynamics a then the in And after of now the the we pricing has ammo breakup since changed have duopoly industry

Scott Sutton

such wholesome a the fundamental are has sport just dynamic there event million Well, I mean to a the ammunition large largest. time XX that of there, and demand this sport the the the target in out Remington lot happen has and that's some out is change where we grow to that quite change. producers ago. us of family pricing shooting, continues of There's be been And doing become biggest happened

John Roberts

Winchester? price was How in much up year-over-year

Scott Sutton

year-over-year, lot volume of We much growth grows. didn't that, a as because at as primarily Lake percent pricing least but give City. volume is do And that on with has to our then a

Operator

of question Byrne Bank from with next Steve comes America. Our

Steve Byrne

the XX% Do the or those some this of downstream resins in this to less feedstock target the commodity acquisitions? upstream epoxy more require respect products production EBITDA downstream the and capacity those and/or shifts will have commercial in you With move the into material sales. downstream relationships of and more to

Pat Dawson

monetize our of asking. our you up and bit. is me down the midstream and say exert you in as to chain that up correct and that in to the let as right First go part channels to We certainly Really, don't spot the little to really midstream. have the sweet in leadership today of in market just were all, here We course nearly place a the all epoxy far chain. questions value

in little our we I a chain would strengths where and just are. So say view how correction just that

Steve Byrne

BPA So cumene you forth can selling get to downstream? move XX% and by and EBITDA and not and so margins epi

Pat Dawson

you we have No, to many upstream, Steve, the and A. channels that epichlorohydrin again, but midstream, and the strength equation bisphenol that's how of the is the monetize we as -- part have

So channels, optionality that's a optionality, where to of parlay. lot we have of a lot of a lot

midstream. broad that's So reaching pretty as into down you move that

Steve Byrne

about curious margin And just epi. then on the

epi about where look of if two your difference products? in chlorine curious chlorine of put your derivatives, you mean I at you all of If you ranking. between in where ranking the fall would those containing would platform broad epi I'm margin the look segments, just that containing the

Pat Dawson

presentation thing that had value our tight pillar on is I strategic and don't to get no those volume. read we think XXXX. derivatives the use versus parlay the and a rankings mind, Epi, keep prioritizing the epi pillar other to to back midstream epi. over February that to through And a my end think we're our be one into where going by various supply headlines into strategic upstream we're make in in of investors down we projected Steve, LER mistake, the I we our how epi to put it's of slides as when where markets XXth, of is demand

of And this just things for last around saw of two midstream phase entering parlaying we coming we've and up been about in ours spot sweet the on talked in so what we the years we're saying of this that X. what these this Slide

our bode EBITDA get to of kind well those this think for epoxy. in XX% I to ability fundamentals So

Steve Byrne

just your slide. sustainability for reduction one Scope X quick on emissions one And We for your also Scope and target for understand putting emissions. you Scott, you X Kudos out an then have XXXX.

whether Just XX% anticipate on your intensive some whether you projects CapEx to have you're goal? or way to do achieve curious well a you get that reduction, strategy to that already as

Scott Sutton

right have that ahead of that. recognizing for target right, mean, by lot XXXX, you're And that a way did we're and I now. Thanks target we

from In fact, year was XXXX. referenced our that baseline of

the have emissions much with how X.X% In carbon intensity. that associated We already every ton we achieved sell. reduction words, an in other is

target. on exceeding we're way to well So our that

Operator

Our next Morgan Castillo with comes question Stanley. Angel from

Angel Castillo

seen break And globally, kind of price within chlor self if last or chlor that alkali, one it would just much driven all outages we've whether helpful. both one of versus your alkali you own how initiatives. epoxy to it's was by initiatives down, just just the help that So on actually pricing in and thoughts yes, could as and that be

Scott Sutton

our ahead? health have but of some been self initiatives. acceleration why really our hand most contract you don't it mean strategy. goes Damian, I actions hand this in with go is may There our and

Damian Gumpel

So condition, I our outside takes a just you form. of market regardless the would tell that self different help

factors. going you it's kind on deploy to dependent less going as outside of and this as look less with we -- to at to -- be a model, forward So

keep, good drive the means will volumes, sophistication a number there'll this side. we we flexibility play again traction to for that of destiny of means many here, is contracts our on. We weaker to pivot we'll that plays the choose just a think our of And forward we enter kind duration, going winners. model more controlling with But I pricing, level selectivity because in We that we have for different just participation us. into in we So on with on more of that, with as engage how want just certainly want kind terms in definitely certainly that to enter. to contracts own into, that we manage us optionality now the ECU next more within partner contracts and of more as an their selectivity lot how want their before, really approach talked be may just all dynamic

Angel Castillo

guidance? in where your think we you contemplate, you about should then to on you within moving, improve guess, materials margins, curious, as noted expect in does sequentially how are raw that epoxy quarter. I just that benzene the the And second was that prices? pickup I the And/or meaningful think them about

Todd Slater

there We've pricing in traction. pricing getting May confident for announced increases momentum had good the There's here very publicly we've fact also that feel that We seen good in are momentum. April. that out continue

improvement improved to So in our we in about the returns improvement and sequential the good sequential feel very the ECU. margins

Operator

our and question Sutton conference any over to back closing like concludes This I answer would turn for Scott session. the to comments.

Scott Sutton

just which lot. to going a Olin in way different to fourth in Thanks earnings with I'd Yes. valuation, I people what to continue got means Olin mean is win like high. call. quarter guess closing, the mean to said we've continue I I a lift to I repeat to our

lot thanks joining So for today. a us

Operator

attending you Thank presentation. today's for

disconnect. now may You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.