MOSCOW (MRC) -- Chemtrade Logistics Income Fund (Toronto, Ontario, Canada) reports a fourth-quarter net loss of CD25.8 million (USD20.7 million), down from a loss of CD12.6 million in the prior-year quarter on higher finance costs, said Chemweek.
Revenue totaled CD319 million, down 10% year over year (YOY) from CD355 million. Chemtrade attributes the decline in revenue to lower sales volumes and selling prices for caustic soda and hydrochloric acid, and lower sales volumes of sodium chlorate, regen acid, and merchant sulfuric acid.
@The year has started with some weather-based challenges and the continuing uncertainty about the duration and extent of the pandemic’s effects on the economy,” says Scott Rook, who becomes Chemtrade’s president and CEO on 1 March. “The pandemic uncertainty means that the outlook for some of our businesses is difficult to predict for 2021, although we are confident that our water solutions business should continue to perform well."
Revenue in the sulfur products and performance chemicals segment totaled CD101 million, down 14% YOY from CD117 million on lower sales volumes for regen and merchant acid, a consequence of the COVID-19 pandemic, says Chemtrade. Adjusted EBITDA totaled C$27.6 million, down 19% from CD34.2 million.
The water solutions and specialty chemicals segment reported fourth-quarter revenue of CD99 million, down 3% YOY from CD102 million on lower sales volumes of water solutions products. Adjusted EBITDA came to CD20.3 million, up 39% from CD14.6 million on higher margins for water products.
Revenue in the electrochemicals segment totaled CD119 million, down 12% YOY from CD136 million. Chemtrade cites a 21% decrease in chlor-alkali sales volumes, a 12% decrease in caustic soda prices, a 12% decrease in hydrochloric acid prices, and 6% lower sodium chlorate sales volumes. Adjusted EBITDA came to CD22.3 million, down 35% from CD34.1 million. A turnaround at the North Vancouver plant reduced chlor-alkali production, which was also constrained by weaker hydrochloric acid demand from the fracking industry. Sodium chlorate sales volumes remained low owing to increased working from home during the pandemic, which led to reduced demand for paper and thus bleached pulp production.
As MRC informed earlier, Chemtrade Logistics has announced force majeure circumstances for the supply of caustic soda, chlorine and hydrochloric acid from its plant in North Vancouver (North Vancouver, British Columbia, Canada). In a statement, the company said that the force majeure was caused by a technical failure of the equipment.
We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1% year on year.
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, liquid sulphur dioxide, sodium nitrite, sodium hydrosulphite and phosphorus pentasulphide. Chemtrade is a leading regional supplier of sulphur, sodium chlorate, potassium chloride, and zinc oxide. Additionally, Chemtrade provides industrial services such as processing by-products and waste streams.
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